STI stocks priced as low as S$100/mo.
In a release, OCBC Bank announced today the launch of the OCBC Blue Chip Investment Plan, a regular investment plan that allows retail investors to purchase Straits Times Index (STI) stocks for as little as S$100 a month.
Investors can use cash or, funds from Central Provident Fund (CPF) or Supplementary Retirement Scheme (SRS) accounts to invest in one or more stocks from a selection of 19 Mainboard STI stocks and one STI Exchange Traded Fund (ETF).
OCBC Bank also saves first-time investors the hassle of opening securities trading and Central Depository (CDP) accounts by buying the stocks on their behalf on a pre-determined date every month.
The 19 stocks were selected as they are included in the CPF Investment Scheme (CPFIS) from the entire portfolio of 30 blue chip stocks in the STI.
“Blue Chip” is defined as common stock of a nationally-known company, with a long record of profit growth and dividend payment.
Statistics from the Singapore Exchange (SGX) showed that the STI has returned an average of 9.3 per cent per annum over the last 10 years, excluding dividends; over the past 12 months, the dividend distributions of the current 30 STI stocks has totalled S$14.94 billion, of which S$7.29 billion was paid over the most recent five months.
The list of 19 selected STI stocks will change as the composition of the STI changes
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