Almost three years ago I wrote about the experience of my friend who dollar cost average $1000 per month into the STI ETF (Exchange traded fund) , 2 months before the market top and how his returns have been. You can read it here. I revisit the article a year ago, you can read that here.
The last time round, I use XIRR to calculate the rate of return per year of the cash inflows and the cash outflows received over time to be 4.95%.
Since a year ago, markets have not moved any where perhaps since 2010 for 5 years. We are still below the highest point reached.
Assuming the cost is 0.25% for commission if you use Standard Chartered Online Trading no minimum commission, the number of units collected in this 7 years 10 months have been 31981 units. The average cost of your units is $2.95.
The current price of STI ETF is $3.41. How is the return?
I provided a snapshot of my XIRR computation. The XIRR or rate of return per year if net present value is zero is 5.55%
The XIRR is higher than last year and somehow seem to get better with time. This is perhaps highly attributable to having more units and more dividends collected.
You can use this 5.55% to compare against your individual stock picks compounded annual growth rate and insurance policies IRR.
This was a challenging time, and past performance might vary versus what you get in the future. Let me know if my data looks highly suspect. I may not be always correct.
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