Investors will soon be able to utilize a new dollar-cost averaging (DCA) strategy that would make building long-term investment portfolios easier through placing of odd lot market orders for securities, the Financial Supervisory Commission said yesterday.
The new investment scheme bypasses the local bourses’ requirement of 1,000-share lots for market orders and would allow investors to purchase shares in odd lots, the commission said.
Investors would be able to conduct their transactions via a trust account at their brokerage, which would place market orders on a wealth management platform that operates with the existing securities trading infrastructure, the commission said.
The wealth management platform is designed to bypass the technical hurdles in processing odd lot market orders, the FSC said.
“We expect the new scheme to bring gradual gains to daily turnover by attracting more types of investors, such as young professionals,” Securities and Futures Bureau Director-General Wang Yung-hsin (王詠心) said at a news conference.
The DCA strategy is an investment method where a fixed US dollar amount of a particular investment is purchased on a regular schedule, regardless of current market prices, Wang said.
The strategy would shelter investors from short-term volatility, as the purchasing price is averaged over a longer duration with the goal of reaping long-term gains, as well as opening up new investment options where the cost of purchasing a full 1000-share lot would be prohibitively high, Wang said.
“We hope to see less hasty trading among investors aiming to catch the latest rally or dump their holdings during panics, as buying high and selling low often results in losses,” Wang said.
More than 10 brokerages have voiced their interest in the new service, Wang said, adding that the brokerages would cover the expenses of maintaining an inventory of stocks to satisfy clients’ odd lot orders.
“Brokerages would set the fees for the new service, but we expect them to set it lower than conventional market orders and other offerings that involve advisory services,” Wang said, adding that while brokerages would offer a list of recommendations, investors would have to pick their own stocks.
“The recommended duration for a long-term investment portfolio is at least two to three years,” Wang said.
The strategy would exclude short-term investments such as warrants, and leveraged and inverse exchange-traded funds, she said.
The commission is working with relevant institutions to achieve the required back end system compatibility and legal amendments to launch the new service in about three to six months, it said.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
RSS