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.
Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Monday introduced the company’s latest supercomputer platform, featuring six new chips made by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), saying that it is now “in full production.” “If Vera Rubin is going to be in time for this year, it must be in production by now, and so, today I can tell you that Vera Rubin is in full production,” Huang said during his keynote speech at CES in Las Vegas. The rollout of six concurrent chips for Vera Rubin — the company’s next-generation artificial intelligence (AI) computing platform — marks a strategic
REVENUE PERFORMANCE: Cloud and network products, and electronic components saw strong increases, while smart consumer electronics and computing products fell Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors. On an annual basis, revenue last quarter grew 22.07 percent, the company said. Analysts on average estimated about NT$2.4 trillion increase. Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses. This
US President Donald Trump on Friday blocked US photonics firm HieFo Corp’s US$3 million acquisition of assets in New Jersey-based aerospace and defense specialist Emcore Corp, citing national security and China-related concerns. In an order released by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s businesses led the US president to believe that it might “take action that threatens to impair the national security of the United States.” The order did not name the person or detail Trump’s concerns. “The Transaction is hereby prohibited,”
Garment maker Makalot Industrial Co (聚陽) yesterday reported lower-than-expected fourth-quarter revenue of NT$7.93 billion (US$251.44 million), down 9.48 percent from NT$8.76 billion a year earlier. On a quarterly basis, revenue fell 10.83 percent from NT$8.89 billion, company data showed. The figure was also lower than market expectations of NT$8.05 billion, according to data compiled by Yuanta Securities Investment and Consulting Co (元大投顧), which had projected NT$8.22 billion. Makalot’s revenue this quarter would likely increase by a mid-teens percentage as the industry is entering its high season, Yuanta said. Overall, Makalot’s revenue last year totaled NT$34.43 billion, down 3.08 percent from its record NT$35.52
RSS