This week, as part of our Fund Facts segment, the communities team have brought over some friends over from the DBS Funds team to answer YOUR burning investment questions.

Ask me anything about…

Unit trusts or investing in general

How a human-robo-advisor like digiPortfolio works

How DBS focus funds are selected

This AMA will be going on throughout next week, Monday, 2 August to Sunday, 8 August. Ask as many questions as possible - the community team will pick the 10 most thoughtful ones* to receive a S$10 eCapitaVoucher from us at the end of the AMA period.

PMs will be answering your burning questions using the @DBS handle! Keep a look out for it and... fire away! 🌠⬇

This AMA is intended to be an informative and educational session for members of The Burrow to learn from a topic expert at DBS. Questions can be submitted via this thread and will be answered at any time between 2 - 8 August (when thread officially closes). Do note that Original Poster (OP) will not be addressing questions on financial advisory/stock picks and/or queries of a similar nature. Community Managers reserve the right to remove any questions that are not relevant and/or defamatory at their own discretion. Please refer to the Community Group Rules as a guideline.

**Community Managers reserve the right to select 10 questions at their own discretion to receive a S$10 eCapitaVoucher, based on clarity and usefulness of question asked.

REIT, EBITDA, IPO, WHAT DO THEY ALL MEAN?! If these terms got you scratching your head, this Learning Unit has got you covered!

Watch our community members have a go at guessing investment abbreviations!

Learning financial jargon as a baby investor may be daunting but it is part and parcel of the investing experience. The more you are familiar with them, the more confident you will be taking on bigger investing concepts. We'll continuously expand this master-list of investment jargon, so do check back from time to time. 🔖🤓

DCA = Dollar-Cost Averaging
It is a strategy where you invest in fixed intervals at fixed amounts - no matter what the market condition looks like. This means you automatically buy more units when prices are low and fewer units when prices are high. Over time, the average cost of your investment could potentially be lower versus a one-time, lump sum investment. DCA also sometimes goes by a different name: Regular savings plan (RSP).

REIT = Real Estate Investment Trusts
It is an investment vehicles that lets you invest in real estate at an affordable price by putting your money into a collective pool of funds where REIT manager then invests in a portfolio of income generating real estate assets, from shopping malls to offices to hotels.

IPO = Initial Public Offering
Initial public offerings (IPOs) are created by private companies and sold on the primary stock market to raise funds for growth to become a public company.

ROE = Return on Equity
Earnings relative to the amount invested by shareholders. ROE=Net income/Shareholders’ equity. It is usually used to show how profitable a company is, and particularly, how good it is in using shareholders’ investment to generate earnings.

CDP = Central Depository
To start trading in the Singapore securities market, a Central Depository (CDP) account is required. It is operated by SGX, provides an integrated clearing, settlement and depository facilities for customers in the Singapore securities market, including both equities and fixed income instruments.

EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortisation
EBITDA is essentially net income (or earnings) with interest, taxes, depreciation, and amortization added back. EBITDA can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures.

ROI = Return on Investment
The rate of return a company gets from its own investment. It is calculated by dividing the company's net income by its net assets.

FOREX = Foreign Exchange
Also known as FX, it is the trading of one currency for another. Foreign exchange transactions can take place on the foreign exchange market, also known as the forex market.

NAV = Net Asset Value
It is calculated by subtracting the total value of liabilities from the total value of an entity’s assets. Similar to how share prices are an indicator of how much a company is worth, NAV serves as a measure of how a unit in a unit trust or exchange-traded fund (ETFs) is worth.

ETF = Exchange-traded Funds
An ETF is an investment fund listed and traded on the stock exchange. Many ETFs track an index such as a stock, bond or commodity index and seek to produce returns that reflect the performance of a particular index.

The projected rise is proof that the future is online. Online retail sales jumped from 13.6% in 2019 to 18.0% in 2020, and is expected to reach 21.8% in 2024.
Read the full report here.

Q:With this in mind, might it be timely for investors to look towards e-commerce giants?
Yay 🙆‍♀️ or Nay 🙅‍♀️to picking up e-commerce ETFs?

Have a question for our DBS Chief Investment Office's CIO, Hou Wey Fook? Pen them below and we'll send them along!

🏊‍♂️💭Did you know that the world’s known total gold supply can fit in just under three Olympic pools?

As supply remains tight and interest rates continue to fall, our DBS Chief Investment Office believes that building gold into your investments could provide added risk-diversification, and even act as an insurance in uncertain times.

With ETF options available to you by way of SRS, CPF, and DBS Vickers... Is now the golden time to go for gold?

Hi Team,

Any plans for DigiPortfolio to be included under the investment category for the Multiplier Account?

Cheers

Savings, Investments, Insurance, Expenses, etc etc. What is the optimal weightage i should be looking at?

What asset classes for investment would you recommend for young adults new to the workplace and want to start investing but may not have a large pool of money to start with?

In our poll: Over 200 of you voiced that dividend payouts and diversification are two considerations that are important to you when it comes to investing.

🍃🌿But did you know? Our CIO 3Q20 report shares that terms like ‘sustainable investing’ and ‘ESG integration’ have evolved to now be a part of many investors’ considerations, and that this ESG overlay has positively impacted long-term performance and risk-adjusted returns.

For many of you, it appears that a company’s ESG principles is not a priority to your investment-making decision today. Why? #WhatWouldYouDo #WWYD

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Depending on your age bracket, the Contribution and Allocation rates will differ to ensure that your other financial needs are also met.

The Basic Retirement Sum (BRS) for each cohort of 55-year old CPF members will be announced on the CPF website prior to help you prepare ahead of time. What can you do with your current savings in these accounts?

Take this time to run through your current CPF savings. Decide which CPF LIFE scheme plan would be best for you based on your funds and the lifestyle you want to have during retirement.

❓ Lost with all the terms and acronyms? Check out ST's quick-look glossary list here <bit.ly/3fSeaBV>

If you've landed on our 'Invest' page on dbs.com.sg...make sure you scroll all the way down and take a look at our nifty Fund Search Tool!

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Click to enlarge!

Don't forget to check 'Display Focus Funds First' to check out the bank's investment views, and how they might come in handy when you're evaluating your next fund purchase.

What is the best way to invest with my kid (below 16 year old) money (said $5000) for them?

Learn about how ETFs are just like stocks, and their key differences from UTs! Check out this series of bite-sized recaps of Exchange Traded Funds. #theburrowtimes

An ETF is an investment fund listed and traded on the stock exchange, but with greater diversification. Many ETFs track an index and seek to produce returns that reflect the performance of a particular index.

You can earn returns from ETFs via capital grow*h (i.e. when the current ETF price rises above its purchase price over a period of time) and/or dividends.

Beginners often get confused with how ETFs and UTs are different, so here's a breakdown to help you clarify your doubts!

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Investing in ETFs can be a beginner's way of getting started. You can buy ETFs via a regular savings plan (as low as S$100 a month) or one-off via DBS Vickers. Your Multiplier Account will take in the eligible transaction under the Investments category, so that your investments will help you earn higher interest rates!

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Did you know that 95% of Unit Trust holdings for DBS/POSB customers are in Singapore Dollars? Check out fun facts and this series of bite-sized learning on The Basics of Unit Trusts. #growwiththeburrow

How do funds work? Follow this basic illustration to show you where your money goes! Unit Trusts are professionally managed funds to help you grow your wealth.

A Unit Trust invests a pool of money, collected from a number of investors, in a range of assets. By pooling your money with that of other investors, you’ll be able to invest in a wide range of assets. Successful investments in the assets add value to the fund and their returns are then distributed back to investors.

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What are the different types of funds that DBS offers, and why should you invest in them? Investing in a unit trust gives you the flexibility to invest in the geography/region, fund house, sector/industry, and even assets that you are interested in!

Check out the list of focus funds using the Fund Search Tool: https://go.dbs.com/2BFXYyj

When you invest in a Regular Savings Plan (RSP) or make a one-time lump sum investment, your Multiplier Account will take in eligible transactions under the Investment category.

Common FAQs:
Q: I currently make monthly contributions with a RSP. What do I do after the 12 months are up?
A: You can make invest in other funds (similarly set up as a RSP) or do a lump sum investment (one-off for that month), or you can buy equities through Vickers.

Q: I am currently on a RSP but I don't see my additional interest!
A: Ensure your RSP is set up AFTER your Multiplier Account is opened. It also needs to be contributed in "CASH".

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It is important to know what your risk appetite is when you are investing. To get a gauge of your risk appetite, you can invest a small amount of money (e.g. S$100), and then the next time the market drops, ask yourself "how do I feel?". If you start to feel jittery or nervous, then you probably have a lower risk appetite (i.e. more conservative).

For newer or more conservative investors, DCA is an important concept to understand. DCA also makes investing in UTs affordable!

Start as little as S$100 per month. Here's the DBS Funds Search tool for you to see all the UTs available on DBS/POSB: https://go.dbs.com/2BFXYyj!

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