This will serve as a guide to people on how purchasing a Unit Trust looks like. Well, doing all these yourself will technically help save 5% of whatever you would have bought from insurance agents, the Funds within Investment-linked products. 

You can read from this site where Investment-linked products are "expensive".

So here goes! Let me start with account opening with DollarDex. I remembered that opening an account with DollarDex was quite a smooth experience. 

Opening an Account with DollarDex
Go to www.dollardex.com. There is a snapshot of how the website looks like below.

Documents required ranges from NRIC photocopy, or recent bill scanned copies. The application was fuss-free and could be completed through the web browser. Thereafter, you would have to link your Bank account to the DollarDex account. This is for redemption proceeds of unit trust to be banked into your account.

Dividend Payout / Re-Investment Options
To opt for dividend re-investment / pay-out, you would have to visit your Aviva account. They will email you your Aviva account Username & Password details after you have opened your DollarDex account. To put it simply, Aviva is like a custodian, DollarDex is just a platform marketing the Unit Trusts.

This is how DollarDex website looks like. Click on "Create my Account".
DollarDex website snapshot.

See Gain/Loss (%) for actual indication of Investment returns to-date. Taken from Aviva platform.
This is one of the parts you can see in Aviva platform. It shows cumulative how much cash has been put into the Cash account (Aviva) / Withdrew (Redemptions of Unit Trusts or Dividend pay-outs). The Gain/Loss is a reliable measure of returns in % terms of your overall Unit Trust journey through DollarDex.


Go to Aviva Platform > Log-in > View Cash plan > Track transactions > Income strategy.
This is an optional feature in DollarDex where you can choose to either receive dividend payouts of Unit Trusts, or Re-investment of the dividend amounts into the original Unit Trusts. 

Natural income would result in Dividend cash amounts to be Interbank-GIROed into your Destination Bank Account. As sown above in blue rectangle boxes, you can also customise the pay-outs to be monthly, quartery, half-yearly, or even annually. 

For me, I have set it to be Monthly, with a specified payment date :) Do not forget to click Save thereafter.

Above are just the administrative portion of account set-up. Now, let us get to how you can actually purchase a Unit Trust.

Navigating the DollarDex platform
At DollarDex platform, you can see at the left side, various functions. Click on Search Funds to access the specific Unit Trust you would want to invest in. In this case, we would wish to locate "LionGlobal Vietnam Fund SGD". So, we would Select "Vietnam" and click "Search".

Regions = Any geographical regions you wish to invest in ie China, Singapore, US, Europe etc
Asset Class = Equity / Bonds / Balanced
Sector = Industrial sector scoped investments
Customisable fields in DollarDex > Search Funds

Lists of Search results > Vietnam focused Funds 
After clicking into LionGlobal Vietnam Fund, you come to the page shown below. It has various information like:

1. NAV price - Typically lags by a day. Net Asset Value of all shares / bonds held by a Fund, divided by the number of units outstanding of the Fund.

2. Equity / Fixed income / Balanced Asset Class

3. Factsheets give you a picture of what the Fund holds, fees involved, and dividend information.

4. Highlights - I find it useful as it gives a very accurate estimation of fees involved.
It will normally publish its expense ratio for the previous year. Hence, if it shows 1.86% for this case, 1.86% of fees is actually built into daily NAV pricing of this Fund upon every other working day.



5. Dealing Basis is a crucial thing to note.
T+0 will mean that if you were to purchase a unit trust today and make payment. NAV applied on your holdings will be the price tomorrow once order is sent to the Fund House. Similarly, for redemption.

T+1 will mean that if you were to purchase a unit trust today and make payment, NAV applied will be the NAV 2 days later. Similarly, for your redemption too. T+2 will mean a delay of one more day and so on.

6. Expense ratio of 1.86% shown in the Products Highlights sheet will be inclusive of this 1.50% management fee.


7. Benchmark - Funds are normally benchmarked against a certain Index. For instance, SG equity funds will most likely be benchmarked against Straits Time Index (a basket of 30 companies listed on SGX).

This Vietnam fund is benchmarked against FTSE Vietnam. FTSE stands for Financial Times Stock Exchange.

8. It is best to cancel your purchase order as fast as possible. If you were to wait till the next day, chances are you may have to write in to cancel a particular order. I believe any payments made to the Unit Trust platform will be used to purchase Units, first-in-first-out basis.

If you were to put in another separate order, your money will be used to pay off the very first order you made, and did not cancel. Only the remaining money will be used to pay off the next order.

In summary, cancel the trades you do not wish to commit to as soon as possible :)

9. Minimum subsequent Investment is the amount you can purchase after your initial investment. In this case, minimum amount for initial investment is $1000.  For instance, if the NAV applicable is $0.50, you will receive 2000 units. 

If you were to buy $500 the next month, and NAV applicable is $0.60, you will receive 833.33 units. You have to at least purchase $500 worth of units.

10. DollarDex provides NAV history. This is one of the most important factor in determining volatility of a Fund, and to judge if Funds are affected by market fluctuations.

For instance, I have used this price history to judge its co-relation to FTSE Vietnam & Ho Chi Minh stock exchange Index.


Placing in orders
1. To purchase Unit Trusts, just hover over the red Action button at bottom right hand corner and click it. Thereafter, click on Add to Shopping Cart.


2. You will be shown the below page where you key in your desired amount to invest. Of course, please key in an amount higher than the minimum initial investment.
3. Select your payment method. I have chosen Cash.
4. Remember to check Total Investment Amount and ensure it is the correct amount.
Choose your payment channel.
5. Review final details, and check disclaimer box. Click on Confirm Purchase.
6. Check / Cancel your purchase order at Account Activity page.

There you go! You have just purchased your first unit trust! 

1 Comments

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