15 February 2018

Low Cost Index Funds

how to invest in low cost index fund in Singapore

Why low cost index funds?

The two main reasons why each and every individual who know nuts about investment should invest in a low cost index funds are:
  1. They are inexpensive
  2. They aren't tied to the success of one single entity
If you do not understand what both of these reasons mean, let me explain.

First of all, if you invest in a low cost index funds, meaning their upfront fee or sale charges are low (usually not more than 1%) and invest them on a regular basis due to the law of dollar cost averaging, then you will incur a super duper low cost in your investment.

Secondly, index funds are invested in not just one single listed company but at least more than 10 of those. Therefore, it creates a wide diversification in your investment thus protecting your risks etc. Not only that, it is also adjusted on a regular basis (about once every quarter) to make sure quality companies are inside the index funds.

How to invest in a low cost index funds?

Watch "How to do a regular investment plan" to find out more!

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