Sunday 22 December 2019

Switching from POSB Invest Saver to FSMone ETF RSP

POSB Invest Saver is a regular savings plan (RSP) where you can invest $100 (minimum) every month which is dollar cost averaging where you invest a fixed sum of money periodically over a long period of time.

I also use it as part of the criteria for DBS multiplier account to achieve another category. If you have seen the dividends I received over 2019, I received dividends every month except for April so I can move my RSP over to FSMone.

Read more: November 2019 Portfolio Review

I chose to move my RSP over as FSMone can offer lower commissions and the main thing is that they can provide much more choices.

Currently, POSB invest saver allows you to buy 4 ETFs:

1. Nikko AM Singapore STI ETF
2. ABF Singapore Bond Index Fund
3. Nikko AM SGD Investment Grade Corporate Bond ETF
4. Nikko AM-StraitsTrading Asia ex Japan REIT ETF

I have been planning to buy shares from other exchanges besides Singapore.And FSMone offers 40 ETF choices ranging from those in SGX, HKEX and also US stock markets.

For a start, I will be buying SPDR STI ETF (ES3:SGX) and Vanguard Total World Stock Index Fund ETF Shares (NYSE:VT).

I like to embark on a more passive and also index investing because to be honest, my portfolio is not performing better than the index and I have decided to just follow the index since I am not beating it

I will slowly add on ABF Singapore Bond Index ETF (SGX.A35) to my purchase. This will mean I need to have an allocation for the 3 ETFs so that I can rebalance it once a year.

In this way, less time will be needed and I will not need to time my purchases as it will be automated.

I have tried the FSMone interface and I think it is rather simple to use. They even have an app that I can easily access to view my investment holdings. The app also allows me to make changes to the amount that I like to purchase each month.

I think automation really works wonders for me, after I started automating my savings to create an emergency fund, it made me realise how having automated deductions can really help achieve your saving goals as the money is just automatically deducted.

Of course, my first purchase will be done on the 8th of next month (start of 2020) so I am still not sure if all will go well.

We shall see how it goes! Here's wishing everyone Merry Christmas in advance and short work week ahead!


  1. hi thanks for ur sharing ur thoughts. i hv also like FSMone platform and recently switched Vanguard Total Stock index of NYSE. However, the dividends are subject to 30% tax. what are ur thoughts on this?

  2. think fsmone also charges dividend handling fees, so need to be careful with the math