Straits TImes Index

THE Straits times Index (STI) is made of of 30 companies that are chosen to represent the economic performance of Singapore's economy. The 30 companies are also what we know as blue chips. They have lesser growth as they are mature companies but do pay out a steady stream of dividend income.
Below is a list of companies that make up the STI :

A good way to become a value investor is to use dollar cost averaging. this methods allows investors to allow investors to ignore fluctuations in share prices.

All you need to do is buy equal proportions of stocks that make up the index at a time, and hold it. Whatever dividends is paid to you will be reinvested and used to purchase even more shares of the constituents.

There had been proven studies that if u invested $1000 a month into the index, at the end of your working life, it is highly possible that you have become a millionaire. This method requires great financial discipline.

Someone might ask, some of the stocks like Jardine Matheson costs $40000+ a lot, how can i actually have the ability to purchase it? The answer is, you do not have to purchase every month. You can actually save up your money, and only purchase once every year or even two to 3 years. 

When the share price goes down, you do not sell it. A good value investor would basically ignore share price  fluctuations as they know that financial markets are cyclical in nature. 

By averaging out your money over the 30 stocks, you are diversifying your risk into many sectors.

I'm coverinng stocks with higher risk and return for people with larger appetite next week! =)