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I called up DBS. The staff on the line informed me that internet banking will still show the old sales charge. However, it will show a discounted sales charge down to 1% on one of the later screens.
This maybe from a staff at the call center. But I still do not know how trustworthy is this information.
Maybe someone else can call again to confirm – 1800 111 1111 (Toll Free).
ReplyThat was what I heard as well. Probably they haven’t updated the IT side of things. Might not see the need to do so since it’s supposed to be an indefinite “promotion”.
ReplyI checked the online purchase again which still shows sales charge of funds at 3 and 5%.
Perhaps the 1% only applies to walk-in or selected funds. Have to reconfirm with them again.
ReplySo, DBS has been making tons of money from their clients from the sale of units trusts in the past when they charge a 5% sale charge.
ReplyHi Hindsight,
Not just DBS, but all the other distributors who charge 5% upfront sales fee.
ReplyHi Lion,
Thanks for the info, perhaps you may not know that Dollardex.com has been selling more than 400 Unit Trusts online at 1% for many years already!
ReplyHi James,
Yes, I’m familiar with dollardex.
Their entry level sales charge is 2%.
It only reaches 1% if you reach private client status (250k in investments).
ReplyHi Lion,
That’s very strange. My first investment with them was in 2003, when I bought S$30K of APS Alpha UT. Then in 2004, I bought $5K of UOB Gold & Gen UT.
On both instances, I only paid 1% sales fee. So, where does the $250K requirement come from?
ReplyHi James,
There could be a promotion going on for the funds you bought then.
Their charges are here:
http://www.dollardex.com/sg/index.cfm?current=../contents/newpricing&contentID=2637
At the entry level, they usually charge 2% for equity funds and 1.5% for bond funds.
ReplyThis is indeed a good start.
However the number of funds they carry still pale in comparison with other distributors like Fundsupermart, Dollardex or Philips Capital.
There is also no MMF (with 0% sales charge) where their customers can opt to place their money instead of the usual saving account.
Nevertheless consumers now have a new avenue for low cost unit trust investment.
ReplyHi Vincent,
They charge 0.2% sales fee for the DBS enhanced income fund. We are almost there. lol
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