POSB recently launches a new product, myhome fund, which essentially buys into 2 ETFs and allow investors to choose the proportion of equities (DBS STI ETF 100) and bonds (ABF Singapore Bond Index Fund) according to individual's risk appetite. Yes, ETFs are getting more popular now as compared to unit trust due to its lower fees, so this serves as a good avenue for investors who are looking for some mid to long term investments but doesn't have the time to manage their portfolio.
But hey, isn't STI ETF already diversified and is itself a passively managed fund? What is there for the bank to manage then? Oh yes, there are 2 indexes to manage, so basically the sales charges (3%) and management fees (0.5%) goes to them for rebalancing your portfolio according to the proportion in those 2. It's like buying a fund which have only 2 stocks and you still need to pay all the fees; nice way for the bank to earn money huh?
Why not just buy the ETFs straight through online brokerage? Or why not research abit more and search and invest in some other mutual funds that beats the STI? Or just invest in DBS stocks lar; sure ownage one. lol