Abalast


The program is based on MSCI World Data collected. Users can update the data via the data input form by clicking on the View >> Index Data Input.

Setup

Inflation – estimated inflation rate. used to calculate any real values in the program.

Expense Ratio Mth – Expense ratio used for monthly contribution. this is used to calculate the total value for the selected period where the contribution is monthly.

Expense Ratio Yr – Expense ratio used for annual contribution. this is used to calculate the total value for the selected period where the contribution is annual.

Txn Expense Mth – Transaction ratio for monthly contribution. This will  be used to calculate the total transaction cost for the selected period where the contribution is monthly.

Txn Expense Yr – Transaction ratio for annual contribution. This will  be used to calculate the total transaction cost for the selected period where the contribution is annual.

Monthly Invested Amt – This monthly invested amount will be used to calculate the annual invested amount together with the cash account interest. This is taken with the assumption that the investor does a monthly contribution to his/her portfolio.

Accumulated Sht term interest – This is the cash account interest that the investor can earn for 11 months if he accumulates this in cash rather than invest monthly.

From and To Date – Used this to select the period to investigate. Once calculate is clicked, the values will be calculated and populated. Note that if you select a period that is way out of the data collected, it will only take to the point where there is data collected.

For folks who want to investigate the uncomplete  release, Download here.

Objectives

  • Performance difference between monthly investment interval vs annual investment interval.
  • Can we offset high transaction costs and miscellanous fees to invest in Exchange traded funds because of its low expense ratio compared to majority of the mutual funds in singapore.
  • The amount of Transaction and Expense Cost incurred for a given period based on period data.
  • Investigate whether there is a certain “tipping point” where expense cost will out weigh transaction cost advantage when comparing investing choices such as Exchange traded funds vs mutual funds.

Completed

  • MSCI World Data Input
  • Total Value after transaction and expense for a given period
  • Nominal and real difference between accummulation using monthly contribution vs annual contribution.

To-Do

  • Factor in selling cost
  • Factor in 30% withholding tax
  • currency conversion cost.