DBS has recently started taking drastic steps to gain market share in the sale of unit trusts.
They have implemented a 1% sales charge policy on the sale of any unit trusts under their platform. This rate is even more competitive than the 2% or 1.5% found in other online unit trusts platform providers.
In fact, you can easily transact via DBS internet banking (edited: Online still shows the usual charges of 3 and 5%). A check after login to DBS internet banking shows that funds from the following fund managers can be purchased online:
In addition, DBS has added 7 more days to the cooling period for anyone who buys from them. This means a total number of 14 days for the cooling off period.
I suspect that their sales have been hit pretty badly since the ban by MAS on selling of investment products through bank tellers. So now they have resorted to competing on price.
Will other financial institutions follow suit?
We have indeed come a long way since the old days where banks used to charge 5% for the sale of unit trusts. All these are positive changes for the consumers.