Monthly Investment Plan - Investment

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Monthly Investment Plan

MIP KEY FEATURES

Overcoming Uncertainty In Roller-Coaster Markets

· Minimal Initial Outlay

· Dollar Cost Averaging Benefits

· Convenient Monthly Deduction

· Disciplined Investment Plan

· Low Sales Charge

· Control over monthly investment amount

· 'No-frills'application

Buy low, sell high. This is among the first rules of investing we learn, but seriously, how many of us apply this simple adage? Emotional factors such as fear and greed often cloud our investment decisions, causing us to miss opportunities when markets are unduly weak and over investing when markets are booming.

The first phase of a stock market recovery can sometimes be swift and unprecedented, and if you are not invested in the market at that moment, you may miss out on the attractive investment gains that such a recovery can offer.

What would be a good investment strategy to adopt in these turbulent times for those with a moderate risk appetite and a long term horizon?

R	Affordability – No minimum initial lump sum required.
R	Control – Decide how much you want to invest each month to be in line with financial ability
R	Flexibility – Be able to stop an investment plan without any penalty charges, according to your investment preference or changes to your financial situation
R	Convenience – Monthly investment sum to be automatically deducted
R	Disciplined Investing – Effectively takes the emotions out of investing and ensure that you are committed to put aside money at regular intervals, regardless of market behavior

The OCBC Monthly Investment Plan (MIP) could just be for you.

Next Steps :

How do I start?

Step 1 : Ensure that you have an OCBC account
Step 2 : Look through our list of fund offerings and make your choice
Step 3 : Complete the application either via Internet or Mail-In

How does MIP work?

MIP allows you to invest a fixed sum of money into an investment of your choice at monthly intervals, regardless of the unit price. Investing regularly on a monthly basis providing the potential for capital growth and can be more effective than lump sum investments. This is because through regular investment, more units are bought when prices are low, and lesser units are bought when prices are high. This approach is also known as ‘dollar cost averaging’ (Use the calculator and see illustration below).

For illustration purposes only:

Dollar Cost Averaging				Lump Sum Investment
Month	Monthly Investment Amount	Price Per Unit	Units Purchased	One time Investment Amount	Price Per Unit	Units purchased
1	$100	$1.50	66	$1,200	$2	600
2	$100	$1.80	55
3	$100	$2.00	50
4	$100	$2.00	50
5	$100	$1.80	55
6	$100	$1.50	66
7	$100	$1.40	71
8	$100	$1.35	74
9	$100	$1.00	100
10	$100	$1.00	100
11	$100	$0.95	105
12	$100	$0.80	125
Total	$1,200	$1.43 ^	917	$1,200	$2	600
The calculations are not indicative of actual market situation. Miscellaneous fees that could be incurred are not taken into account. ^ Average price per unit

On the lump sum investment approach, by investing $1,200 at the beginning of the year and at $2 a share, you would have purchased 600 shares.

On the Dollar Cost Averaging approach, had you invested regularly monthly into a fund over a year, you would own 917 shares.

Assuming 1 year later, market value per unit is $4,

Dollar Cost Averaging

Lump Sum Investment

Units

Purchased

Average

Price

Per Unit

Market

Price

Per Unit

Gain

Units Purchased

Price

Per

Unit

Market Price

Per Unit

Gain

917

$1.43

$3,688

600

$2,400

That would make a difference of $(3,688 - 2,400) = $1,268 in gains!

Fund Fact Sheets and Prospectuses

	Fund Name	Fund Class	Factsheet	Prospectus
Equities	Aberdeen Global Emerging Markets Fund SGD	A
	Aberdeen Pacific Equity Fund SGD	A
	Aberdeen Asian Smaller Companies Fund SGD	A
	AB Global Equity Blend Portfolio SGD	B
	AB Global Growth Trends Portfolio SGD	A
	First State Dividend Advantage SGD	A
	Fidelity China Focus Fund SGD	A
	LionGlobal Asia Infrastructure Fund SGD	A
	LionGlobal Aspac Recovery Fund SGD	A
	Schroder BRIC Fund SGD	A
	Schroder Singapore Trust SGD (Click here for Insurance Term Sheet)	A
Fixed Income	FTIF Templeton Global Bond Fund A(MDIS) SGD	A
Fixed Income	Aberdeen Asian Credit Fund SGD	A
Balanced (Equities + Fixed Income)	AB Global Balanced Fund SGD	B
	AB Global Conservative Fund SGD	B
	First State Bridge A SGD	A
	LionGlobal Singapore Balanced Fund SGD	A
	LionGlobal Target Return Fund SGD	A
Others (Risk moderation with use of options, futures etc)	AllianzGI Choice Equity Fund SGD	A
Others (Risk moderation with use of options, futures etc)	AllianzGI RCM Global Twin-Focus Fund	A

Click here for Indicative Unit Trust prices

Other Important Documents

Terms and Conditions of OCBC Investment Services

ABS Guide on Investment Products

Unit Trust 7-Day Cancellation Period form

Fee Schedule

List of Product Providers

Fees and Charges

No front-end sales charge for the Class B unit trusts. Please refer to prospectus for Contingent Deferred Sales Charge

Low sales charge of 1.50% for the Class A unit trusts

Promotions

Invest at least S$300 monthly in a single fund for 12 months* to get an exclusive free gift from the respective fund houses:

Schroders USB Flash Drive	Aberdeen Travel Accessories Set	AllianzGI Cash Card

This offer is valid for a limited time only, so take action immediately!

Please click here for more details and Promotion Terms and Conditions

* Monthly investment must be successfully debited for 12 successive times without termination of the Monthly Investment Plan with the respective fund houses

Special Promotion for OCBC SmartParent Account Holders

Enjoy 0.50% special sales charge as an OCBC SmartParent account holder.
Please click here to find out how to open an OCBC SmartParent account to enjoy the suite of family-related privileges..

Terms and conditions apply

Monthly investment needs to be at least S$300 in a single fund. Non-promotional sales charge will apply if monthly investment is less than S$300.
This promotion is only valid for OCBC SmartParent account holders and non-promotional sales charge will apply upon termination of OCBC SmartParent account.
Valid only for application submissions via Internet Banking / mail-in.
OCBC Bank reserves the right to waive / vary / amend any of these terms and conditions without prior notice.

Special Tie-up with NTU and SMU

For all staff, alumni and undergraduates of Nanyang Technological (NTU) and Singapore Management University (SMU), OCBC is pleased to offer a preferential low sales charge of 1% for Class A unit trusts.
To enjoy this benefit, please apply by mail and attach a photocopy of one of the supporting documents, where applicable as follows:
- Staff pass
- Degree
- Matriculation card

Special rates for customers with Salary Crediting arrangements

For all customers who have salary crediting arrangements with OCBC Bank, OCBC is pleased to offer a preferential low sales charge of 1% for Class A unit trusts.
To enjoy this benefit, the OCBC Savings/Current Account that you nominate in the application form as the debiting account for your Unit Trust Monthly Investment Plan must be the same as the account to which your salary is being credited.
To apply, just follow the instructions under "Apply Now!"
Offer is valid till 31 Mar 2010

Special Tie-up with FairPrice Plus¹

For all FairPrice Plus¹ customers, OCBC is pleased to offer a preferential low sales charge of 1% for Class A unit trusts. Hurry, promotion ends 31 Mar 2010. To enjoy this benefit, please apply by mail and indicate under GIRO INSTRUCTION your FairPrice Plus¹ Savings Account number for monthly deduction.

^ Click here for more details

¹ FairPrice Plus is a collaboration between NTUC FairPrice Co-operative Limited and Oversea-Chinese Banking Corporation Limited. All banking products and services, unless otherwise stated, are provided by Oversea-Chinese Banking Corporation Limited for FairPrice Plus.

Apply Now!

Apply for Monthly Investment Plan

You need an OCBC Bank current or savings account to start your Monthly Investment Plan. If you don't have one, OCBC Bank offers you the option to open an OCBC Statement Savings Account or an Easisave Account by mailing in the application or by applying through OCBC Internet Banking. It's simple, convenient and fast!!

Apply for OCBC Statement Savings Account
Apply for OCBC Easisave Account

Should you wish to cancel your Monthly Investment Plan at some time in the future, please complete the MIP Termination Form and submit the completed form to OCBC Bank.

IMPORTANT INFORMATION. Please read the following:

A copy of the prospectus of the unit trust funds is available and may be obtained from www.ocbc.com, the Fund Manager, or any of its approved distributors. Potential investors should read the prospectus for details on the unit trust funds before deciding whether to subscribe for or purchase units in the unit trust funds. The value of the units in the unit trust funds and the income accruing to the units, if any, may fall or rise.

The investment objective and policies of each of the unit trust funds are stated in the relevant prospectus.

Investors may wish to seek advice from a financial adviser before making a commitment to purchase the unit trust funds.In the event that an investor chooses not to seek advice from a financial adviser, he should consider whether the unit trust funds in question are suitable for him.

No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice. OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein.

OCBC Bank, its related companies, their respective directors and/or employees (collectively “Related Persons”) may have positions in, and may effect transactions in the products mentioned herein. OCBC Bank may have alliances with the product providers, for which OCBC Bank may receive a fee. Product providers may also be Related Persons, who may be receiving fees from investors. OCBC Bank and the Related Persons may also perform or seek to perform broking and other financial services for the product providers.

Singapore dollar deposits held by or for an individual or a charity in accounts listed in OCBC Bank’s Insured Deposit Register (available at www.ocbc.com/policies) will be insured in accordance with and for up to the limits specified in the Deposit Insurance Act.