Entry 53

How do you beat inflation?

“Hey Dad! Why does one cup of Kopi-O cost $2 now? I remembered it cost $1 just 5 years ago when I was in secondary school! ”

Does this sound familiar to you? Have you ever wondered why there is a price increase in goods?

Well, this is due to something called inflation.

So is there any way to beat inflation without much hassle?

Today I will show you a simple method which I have been doing for 2 years just by automating the process!

Through the share builders plan from Phillip securities, they will put $200 into STI ETF for me. You can buy this ETF from SGX directly. However, the minimum investment for this ETF is $3000+. Most young investors who are working part-time will find it hard to invest $3000+ at a time.

How the share builders plan works?

The minimum sum to invest in is $200 every month into the STI ETF. The STI, which is the Straits Times Index, comprises of the 30 largest companies listed in the Singapore stock market. The best thing is component stocks in an index is changed periodically. Bad companies are removed and replaced with another company.

Why should I invest in STI ETF?
STI ETF has returned an annualized return of 8.04% over the past 10 years from its fund factsheet. This means your money has doubled over the 10 years through the effects of compounding!
Compared to putting it into a bank, you only get a miserly bit of interest of less than 0.5%.

If you are looking for a way to start investing but have little capital and no knowledge in investing, this is for you!
Start investing today to maximize the value of your money and fight against inflation!