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Tuesday, May 22, 2007

Indexed funds for small investors

A few people have asked me to get Vanguard to set up their indexed funds in Singapore. They like to have access to low cost funds.

There is already a way for investors to access an indexed fund. It is called the STI ETF.

However, some small investors may find it difficult to open a account with a stockbroker or with the Central Depository.

I will study a way to set up a mutual fund that allows small investors to invest in:

* indexed fund, eg STI ETF
* government bonds

This service can be handled through the internet or contact center, and can be at a very low cost (say 0.1% per annum).

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