| 1) Opening New Accounts > 1.1.1) Types of Individual/Joint Account > 1.1.1(H) Shares Builders Plan (SBP) |
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1.1.1(H) Shares Builders Plan (SBP)
Share Builders Plan (SBP) is a regular fixed-dollar amount investment plan, which enables clients to buy blue chip shares on a consistent and incremental basis so as to build up a portfolio of good securities for them eventually.
Using the concept of dollar-cost-averaging, SBP allows clients to hedge the volatility of share prices by averaging costs of shares acquisition. With the low minimum investments amount required of $200, SBP allows small-time investors to build up portfolios of blue chip portfolios over time and at lower than normal brokerage costs.
The minimum amount of investment is $200 every month, subjected to a minimum of $100 per counter. Currently, we offer a total of 14 blue chip Singapore listed shares. The aggregate monthly investments of all clients for any particular selected SBP counter will be done on the 18th of every month on a non-discriminatory and non-preferential basis. If the 18th of the month falls on a non-market day, buying of the counter will be done on the next available trading day.
Clients will need a trading account with PSPL to facilitate selling of your SBP shares. Selling of SBP counters can be done through the remisier. When selling, it is important for clients to indicate that they are selling from their SBP shareholdings. Normal trading brokerage charges will be applicable when selling their SBP shares.
Client to complete the following forms and sign before an officer of PSPL:
- SBP Account Opening form. (There’s no need to have a GSA account.)
- Photocopy of NRIC /Passport.
- Inter-bank GIRO form.
Below is a list of charges:
| Types of services | Fees and charges | |
| Handling fees | $3 for investment amount <= $1000 0.3% for investment amount > $1000 | |
| Dividend charges | No charge | |
| Insufficient funds charges | $5 per SBP counter | |
| Annual maintenance | $10 per year payable upon commencement |
- Minimum investment amount is $200 per month, subjected to a minimum of $100 per counter. (Client to decide on the counter to invest in.)
- Funds are to be received by the 17th of each month for the buying of each counter on the 18th of every month. If the 18th falls on a non-market day, the buying would be done on the next market day.
- There is an Annual Maintenance fee of $10, payable on the commencement month and a handling fee for an investment amount:
- Less than $1,000 per month - $3.
- More than $1,000 per month - 0.3% of the investment amount.
- Electronic monthly statement and quarterly consolidated statement will be sent to client.
As an expert in financial services and investment products, I bring a wealth of knowledge and experience to the table. With a background in the intricacies of investment plans and a proven track record of providing insightful information, I am well-equipped to guide you through the details of the Shares Builders Plan (SBP) and its various components.
Let's delve into the concepts and details outlined in the provided article:
Shares Builders Plan (SBP)
1. Concept: Dollar-Cost Averaging
- Explanation: SBP utilizes the concept of dollar-cost averaging. This strategy involves investing a fixed-dollar amount at regular intervals, regardless of the share price. This helps in averaging the cost of share acquisition, thereby mitigating the impact of market volatility.
2. Investment Plan Details
- Description: SBP is a regular fixed-dollar amount investment plan designed to allow clients to acquire blue-chip shares consistently over time.
- Minimum Investment: The minimum investment amount is $200 per month, with a minimum of $100 per counter.
- Blue Chip Shares: Currently, the plan offers a total of 14 blue-chip Singapore-listed shares.
3. Investment Process
- Monthly Investments: Aggregate monthly investments for a specific SBP counter are executed on the 18th of every month.
- Non-Market Day: If the 18th falls on a non-market day, the buying of the counter will be carried out on the next available trading day.
4. Selling of SBP Shares
- Trading Account: Clients need a trading account with PSPL to facilitate the selling of SBP shares.
- Brokerage Charges: Normal trading brokerage charges apply when selling SBP shares through a remisier.
- Client Communication: Clients must indicate that they are selling from their SBP shareholdings.
5. Account Opening and Documentation
- Forms and Documents: Clients need to complete the SBP Account Opening form, provide a photocopy of NRIC/Passport, and submit an inter-bank GIRO form.
- No GSA Account: There's no requirement for a GSA account.
6. Charges and Fees
- Handling Fees: $3 for investment amounts <= $1000; 0.3% for amounts > $1000.
- Dividend Charges: No charge for dividend handling.
- Insufficient Funds Charges: $5 per SBP counter.
- Annual Maintenance Fee: $10 per year, payable upon commencement.
7. Minimum Investment Deadline
- Funds Reception: Funds are to be received by the 17th of each month for the buying of each counter on the 18th.
8. Statements
- Statement Delivery: Clients receive electronic monthly statements and quarterly consolidated statements.
By understanding these concepts, investors can make informed decisions regarding the Shares Builders Plan, aligning their financial goals with the features and requirements of the investment vehicle.
