lol, I must be desperate to get rich after losing some 40% of my CPF on pru-links funds. Guess my ignorance and "boh chap" altitude plays apart in this loss and now I'm in a mess of trying to remedy the situation....
Been reading up and finding ways to boost my returns once the bull-run return, but face with an issue....my opportunity fund is not enough...
Came to know about this plan...when surfing some blogs on Financial Freedom. I realise that I can actually do "Dollar Cost Averaging" by investing a minimum sum in the stock market just like the Pru-link Fund, but better as I get to enjoy Dividends and the charges to do it monthly is also lower than that of the PRU-Link funds. (I was thinking to myself who would want to invest in PRU-Link with this Share-Builder plan make available, but note that SBP does not have insurance benefits attached though)
Anyway, I'm committed to this plan. Right now, since I am low on opportunity funds, so the plan is to start off low, on SPH first.
Chosen to go with Singapore Press Holdings, is largely due to the fact that is gives out relative high and stable dividends,~9% plus the PE Ratio is about 10.93, thus is still consider to be marginally under-valued. Since I am doing Dollar Cost Averaging, I'm minmising my risk of prices fluctuation.
" quote from a blog" as a guide....
http://market-uncle.blogspot.com/2008/03/i-bought-sti-etf-on-5th-march-2008.html
- P/E less than 10 implies chances of undervaluation
- P/E between 10 and 20 indicates possible fair valuation
- P/B more than 20 probably indicates over valuation, anything above 50 possibly means grossly overvalued
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