DBSAM MyHome Funds

a) The annual management fee of 0.5%pa is considered low. Moreover, the prospectus states that the underlying management fee of the ETFs will be rebated back to the fund if the ETFs are managed by DBSAM which is true in this case. Thus appears to be no double charges in management fee. I estimate that the expense ratio of the fund will be at least 0.5%pa.

b) The $100 minimum monthly RSP is good for those who wish to invest regularly. This small amount is not practical if one would to buy the ETFs directly.

a) 3% sales charge is too expensive considering the underlying is just ETFs. For a $5000 investment the commission is $150. Brokerage fee is much lower if you buy the ETFs directly through an online stock broker.

b) The FTSE STI is considered a bad index because it is poorly diversified. It only has 30 companies in it. The top 4 companies are SingTel, UOB, DBS and OCBC which all consists of more than 44% of the FTSE STI index. Investors will end up exposing themselves to these companies and especially in financial sector.

c) If one would to buy the DBS STI ETF and ABF Singapore Bond Index ETF directly from the exchange, the management fee is only 0.20% pa and 0.15% pa respectively. However, if you buy the DBS Myhome fund, you end up paying 0.5% per annum for getting the same thing as going direct. What is the added value DBSAM is doing for charging this extra in fee?