Frequently Asked Questions

FAQ - Unit Trust Application

  1. What is a unit trust?

    A unit trust pools monies from individual investors and is professionally managed by a fund manager. The monies are then invested in various assets like bonds, fixed income instruments, equities or other asset classes as provided for in the unit trust’s prospectus.
  2. What are the benefits of investing in a unit trust?

    The benefits are:
    • Low minimum investment amount
      Depending on the unit trust, you can invest in a unit trust with as little as S$1,000.
    • Professional management
      Your money is managed by experienced and professional fund managers who have access to the latest information on markets and companies and are in a position to make informed investment decisions.
    • Diversification
      One benefit of investing in a unit trust is diversification, which helps reduce risks. With unit trust, you, the investor, are able to spread your investment risks across various markets, sectors and asset classes. By pooling your resources with other investors, you can invest in a range of companies in their respective markets and sectors. This kind of diversification is usually not possible for the individual investor because of limited financial resources and the scale of investment.
    • Access to specialised markets and overseas opportunities
      Unit trust give investors access to specialised and overseas markets. This opportunity is difficult for an individual investor to have because of limited resources.
    • Liquidity
      Unit trust investments can be redeemed at any time and processed on the same day or the next working day, depending on the time that such redemption requests are submitted by the investor. Upon redemption, the fund managers will buy back the unit trusts sought to be redeemed by the investor at a price based on the NAV price of the unit trust investment. Generally, most unit trust investments are valued daily and in some cases, weekly, monthly or quarterly.
  3. How do I decide which unit trust to invest in?

    Your choice and decision should be made based on your goals, risk tolerance and investment time horizon. Different unit trusts invest in different asset classes, markets and sectors, depending on the investment objective and strategy of that particular unit trust. Consequently, they also have different levels of risks and returns.
  4. Are returns guaranteed?

    Like all investments, there are risks involved. Unit trusts are no exception and returns cannot be guaranteed. Prices can rise or fall depending on a range of factors including market conditions and investors have to exercise judgment and make their own decisions.
  5. What is the minimum investment amount?

    This varies from unit trust to unit trust. Generally, the minimum initial investment amount for most unit trusts is S$1,000. For subsequent investments, the amount is lower, usually between $200 and $500.

    Please refer to the relevant unit trust’s prospectus for more details.
  6. What are the transaction fees/ charges involved?

    Generally, there are 3 types of transaction fees/charges:
    • Sales charge
      For unit trust with net asset value (NAV) pricing, an initial sales charge will be deducted from the investment amount. This is a fee charged by the bank for its services in facilitating the processing of unit trust investments. For unit trusts with bid / offer pricing, the initial sales charge is already factored into the offer price.
    • Annual management fee
      This is an annual fee charged by the fund manager for their management of the unit trust.
    • Trustee fee
      This is the annual fee charged by the trustee for the provision of custody services of the unit trust’s assets.
  7. When and where are the purchase prices available?

    Unit trust investments operate on a forward pricing basis. This means that unit trust prices are only calculated at the end of the day after all investments and the cost of all transaction activities have been taken into account.

    The unit trust’ prices can be obtained from the following:
    • At the Bank's website www.dbs.com under the section titled 'Rates Online'
    • In the major newspapers
  8. Will dividends be paid?

    This depends on the type of unit trust you buy. Dividends, if any, are also paid out at the discretion of the fund managers.
  9. What is the frequency and content of unit trusts’ factsheets?

    Most unit trusts’ factsheets are available monthly and include market reviews, information on the unit trust’s performance, the market outlook, it’s top 10 holdings and it's asset allocation. Once the unit trusts’ factsheets are provided to the Bank, these factsheets will be made available to the unit trusts’ investors via the Bank’s website at www.dbs.com/posb/investments/unittrusts.
  10. Who can invest in unit trust?

    You need to be at least 18 years-old (as at the date of application for the unit trust) to invest in unit trust. Before investing in any unit trust, please ensure that you have read the relevant unit trusts’ prospectus and the relevant terms and conditions.

FAQ - Unit Trusts Subscription via POSB iBanking

  1. How do I invest in unit trusts through POSB iBanking?

    To invest in unit trusts online, you need to be a POSB iBanking user. For the purposes of using POSB iBanking services, you will need to apply for a User Identification (UID) and Personal Identification Number (PIN). Here are 3 easy ways to do so:

  2. What unit trusts can I invest through POSB iBanking?

    Currently, investment in unit trusts via iBanking is only available for selected unit trusts. Please login to POSB iBanking to view the full list of unit trusts from this link: www.dbs.com/posb/investments/unittrusts

    Note: You are advised to read the relevant unit trust’s prospectus carefully before you continue invest in any unit trust. Such prospectuses contain important details of the relevant unit trust, including terms that are binding on you upon your investment in the unit trust.
  3. How do I invest in unit trust via POSB iBanking?

    To apply, just follow the steps below:
    • Log in to POSB iBanking and click on "Investment Services", select "Unit Trust Application".
    • Select your choice of unit trust to invest, indicate your nationality and click submit.
    • On the next page, enter the mandatory required fields to invest in the selected unit trust and specify the:
      1. Amount you wish to invest in the selected unit trust,
      2. your account from which you wish to debit your investment amount from,
      3. your preferred Contact number (in case we need to call you to clarify).
      Once you have completed these fields, click on “Submit”.
    • At the next confirmation page, check your details to ensure that they are accurate, if so; confirm your application by clicking on the "OK" button.
    • Print the acknowledgement page or note down the transaction reference number stated therein as you will need to quote this number when making future enquiries on your transaction.
  4. Can I purchase unit trust jointly with another account holder via POSB iBanking?

    You can only increase your holdings of unit trust that you currently hold jointly with another account holder via iBanking. If you do not have existing joint holdings of unit trust, you can only make investments in new unit trust via iBanking in your sole name. Joint purchases of new unit trust will have to be made at any of our POSB branches.
  5. Can I top up my existing unit trust through POSB iBanking?

    Yes, you can do so. Assuming that the unit trust is from the selected product providers available for investment on POSB iBanking, you can increase your holdings by making a subsequent investment following the steps as provided at question 3 above.

    You can increase your holdings for both existing personal and for unit trusts held under your joint account, subject to the limitations as set out in question 4 above.
  6. How do I pay for my unit trust purchase via iBanking?

    You can choose to pay for your unit trust investments from your existing Personal or Joint-alternate Savings, Savings Plus, Current or Autosave accounts. These options will be available for your selection online.
  7. Can I use my CPF monies to purchase unit trust via iBanking?

    You can only do so if your CPF Investment Account is with DBS. If not, you can only purchase unit trust using your CPF monies at any DBS or POSB Branch.
  8. How will I know if my online application to buy is successful?

    Upon successful submission of your application, you will see an acknowledgement screen with a transaction reference to confirm that your application has been successful. After 2 business days, the unit trust you invested in will be reflected in your POSB iBanking “Account Summary” page.

    We will also post a confirmation letter to you stating the confirmed price and the number of units under the unit trust that has been purchased by and allotted to you.
  9. Can I cancel my application request online?

    You cannot cancel your application online once it has been submitted successfully. Such cancellations can only be done at any DBS or POSB Branch. Do note that if you are a first time investor of a unit trust, you have the right to cancel within 7 calendar days from the date of your investment.
  10. After I have applied for a unit trust, can I see it in the iBanking “Account Summary” page immediately?

    You will only be able to see your unit trust holdings after the prices and the numbers of units have been determined which is likely to be available 2 working days after your successful online submission.
  11. How can I check my existing unit trust holdings online?

    You may check your existing unit trust holdings through the iBanking “Account Summary” page approximately 2 business days after your successful online submission. Your updated unit trust holdings will also be reflected when you apply to purchase additional units of the same unit trust.
  12. Is the unit trust subscription via DBS iBanking available all day?

    On the last business day of each month, the unit trust subscription DBS iBanking service is available all day except from 7.45PM to 8.45PM. On all other days, the unit trust subscription DBS iBanking service is available all day except from 7.45PM to 8.15PM and 11PM to 11:30PM.

    Please note that subscriptions made after the unit trust's dealing deadline will only be processed on the next business day. Subscriptions for the unit trust made before the respective unit trust's dealing deadline as stated in the unit trust’s prospectus will be processed on the same day.
  13. Can I purchase unit trust using other means besides iBanking?

    You may also buy unit trust at any DBS or POSB Branch or ATMs.

FAQ - Unit Trusts Redemptions via POSB iBanking

  1. How do I redeem my unit trust through POSB iBanking?

    To redeem your unit trust online, you need to be a POSB iBanking user. You can get your User Identification (UID) and Personal Identification Number (PIN) easily with these 3 ways:

  2. What unit trusts can I redeem through POSB iBanking?

    Currently, you can only redeem SGD denominated unit trust investments purchased from DBS. Such SGD denominated unit trust investments must have been purchased in cash only and held by you either in single or on joint-alternative basis. Further, in order to redeem such unit trust online, these unit trusts must be issued by selected product providers available online. Please login to POSB iBanking to view the full list of unit trusts that can be redeemed through POSB iBanking from this link: www.dbs.com/posb/investments/unittrusts
  3. How do I redeem unit trust via POSB iBanking?

    You are advised to read the unit trust’s prospectus carefully, which contains details of the unit trust’s terms and conditions governing redemption of the unit trust.

    To redeem, just follow the steps below:
    • Log on to POSB iBanking and click on “Investment & Trading” and select “Redeem Unit Trust by Cash”.
    • Under the “DBS Terms and Conditions for Unit Trust Redemption” section, read and confirm your understanding and acceptance of the stipulated Terms and Conditions by clicking the “I Agree” button to proceed to the next page.
    • The “Redeem Unit Trust by Cash Selection” page will show your unit trust holdings eligible for redemption. Select the unit trust that you wish to redeem and click on the “Continue” button to proceed to the next page.
    • Under the “Redeem Unit Trust by Cash Input” page, enter the following fields and click on the “Submit” button to proceed to Confirmation Page:
      • Number of units of the unit trust to redeem for the selected unit trust; and
      • Select the crediting account that you wish to credit the redemption proceeds.
    • Confirm your request at the Redeem Unit Trust by Cash Confirmation Page by clicking on the “Confirm” button to proceed to the completion page where you will receive a confirmation that your transaction has been completed.
  4. How will I know if my application to redeem is successful?

    At the end of your online application, if you see the page entitled “Redeem Unit Trust by Cash Completion” this would mean that your application to redeem was successful. You may wish to print out this page with the Transaction Reference Number as this number is required if you wish to inquire on your redemption application.

    A confirmation advice, confirming the redemption Net Asset Value of the unit trust and the amount of the redemption proceeds due to you, will be sent separately to you.
  5. Can I redeem unit trusts that are held jointly with another account holder?

    If you have existing unit trusts which are eligible for redemption through iBanking and are on a joint-alternate basis, you can redeem your joint alternate holdings online. However, if it is held on a trust minor or joint-all basis, please visit any DBS/POSB branch to do so.
  6. How will the Unit Trust redemption proceeds be returned?

    You can choose to credit your redemption proceeds into your existing SGD Personal or joint-alternate Savings, Savings Plus, Current or Autosave accounts. These options will be available for your selection online.
  7. Can I use redeem my unit trusts invested using CPF or SRS monies via POSB iBanking?

    This is not available via POSB iBanking. If you would like to redeem your unit trusts invested using CPF or SRS monies, please visit any DBS/POSB branch.
  8. How long will it take for the redemption proceeds to be credited to my account after a redemption application has been made via POSB iBanking?

    There will be a redemption confirmation letter sent to you to inform you of the actual redemption price and the redemption amount. The redemption amount will be credited to your designated account within approximately 7 business days from the date of this redemption confirmation letter.
  9. Can I cancel my redemption application via POSB iBanking?

    You cannot cancel your application once it has been submitted successfully online.
  10. Is the unit trust redemption via POSB iBanking available all day?

    On the last business day of each month, the unit trust redemption POSB iBanking service is available all day except from 7.45PM to 8.45PM. On all other days, the unit trust redemption POSB iBanking service is available all day except from 7.45PM to 8.15PM and 11PM to 11:30PM.

    Redemption applications submitted before the respective unit trust's dealing cut off time as stated in the unit trust’s prospectus will be processed on the same day. However, redemption applications submitted after the unit trust's dealing cutoff time will be treated as the next business day's transaction.
  11. Can I redeem unit trust using other means besides iBanking?

    You may also redeem your unit trust at any DBS or POSB Branch.
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