Best Platforms to Buy Unit Trusts in Singapore

I've seen a fair bit of discussion about unit trusts in the Beansprout community recently.

With T-bill yields falling, investors appear to be looking at alternative ways to earn a higher yield on their savings.

This has led to many questions about money market funds and bond funds, as well as where to buy them.

The platform we choose to buy our unit trusts can affect everything from the fees we pay to the range of funds available and even the tools we get to track your investments. 

Pick the wrong one, and we could end up paying more than we need to.

That’s why I put together this guide—to break down the best platforms in Singapore for investing in unit trusts and mutual funds, and what to look out for when choosing the right one for you. Let’s get started!

How to choose the best platform for buying unit trusts in Singapore

Before picking an investment platform to buy unit trusts and mutual funds, I'll consider a few things:

• Licensed and trusted
• Fees and charges
• Range of products available
• Minimum investment amount
• Purchase using CPF and SRS funds
• Other factors

#1 - Licensed and trusted

Your hard earned money should be in safe hands. To have peace of mind, ensure that the online platform is licensed by the Monetary Authority of Singapore (MAS) with the right licenses. In this review, we only compare platforms regulated by the MAS. 

#2 - Fees and charges

Even a small fee difference can eat into your long-term returns. In this review, we outline costs such as sales charges, platform fees and other fees you may incur when buying and selling mutual funds and unit trusts on each platform. 

To learn more about fees, check out our guide to unit trust fees here. 

#3 - Range of products available

Not all platforms carry every fund, so check whether the fund you're interested in is available before signing up for an account. Even if a fund is listed, it may come in multiple share classes.

Some platforms may also offer a wider range of share classes for a particular fund, giving you more flexibility in choosing one that aligns with your investment goals and budget.

#4 - Minimum investment amount

Some platforms offer the option to dollar-cost average into a fund through a Regular Savings Plan (RSP). Others allow you to start with as little as S$100 per trade. 

#5 – Purchase using cash, SRS or CPF funds

Not all platforms support buying mutual funds with CPF or SRS funds. 

If you plan to invest using CPF or SRS, check if the platform offers this option before proceeding.

#6 - Other factors

Some banks offer bonus interest on their savings accounts when you invest in mutual funds through them.

For example, OCBC 360 Account allows you to earn an extra effective interest rate of up to 1.5% p.a. interest on your savings when you invest at least S$20,000 in mutual funds with OCBC. 

DBS Multiplier Account offers an interest rate of 4.1% p.a. when you transact in 3 or more categories compared to an interest rate of 3.0% p.a. when you transact in 2 categories, for those with total eligible transactions per month of S$30,000 or more. Purchasing a mutual fund through DBS would count towards one of the transaction categories. 

This is valid for new unit trust lump-sum or online funds investment purchased with cash, CPFIA or SRS after Multiplier Account is opened.​

#1 - Platforms with the lowest fees for investing in mutual funds and unit trusts in Singapore

POEMS, Tiger Brokers Fund Mall, Moomoo Fund Plus have zero sales charges and zero fees when investing in mutual funds.

Though Endowus charges an annual management fee of 0.25% to 0.30% for a single fund investment, it provides access to institutional share classes, which might have a lower fund total expense ratio (TER).

#2 - Comparing the mutual fund share classes offered by investment platforms in Singapore

When choosing a mutual fund platform, consider whether it offers the fund you want, along with the available share classes, management fees, platform charges, and minimum investment amounts.

The same mutual fund can have multiple share classes, each with its own fund fees and minimum investment requirement. 

These differences can impact your long-term returns, so choosing the right share class is just as important as picking the right platform to invest through.

The PIMCO GIS Income Fund is a great example of how share class availability can vary across platforms.

POEMS and FSMOne offer both the Administrative and E share classes of the PIMCO GIS Income Fund. The Administractive class has an expense ratio of 1.05% p.a.

On the other hand, Endowus provides access to the Institutional share class with a lower total expense ratio of 0.55% p.a. 

FSMOne and POEMS do not charge a platform fee. However, Endowus charges an annual management fee ranging from 0.25% to 0.30%, depending on the investment amount.

If you are buying the Institution share class of the PIMCO Income fund on Endowus, you would incur a total cost of 0.85% p.a, comprising a total expense ratio of 0.55% p.a. and a platform fee of 0.30% p.a. 

If you are buying the Administrative share class of the PIMCO Income fund on FSMOne or POEMS, you would incur a total cost of 1.05% p.a, representing the expense ratio of the fund. 

If you are buying the E share class of the PIMCO Income fund on Moomoo, you would incur a total cost of 1.45% p.a, representing the expense ratio of the fund. 

If you are buying the E share class of the PIMCO Income fund on OCBC, you would incur a total cost of 2.27% p.a, comprising a total expense ratio of 1.45% p.a. and a platform fee of 0.80% p.a.

Minimum investment amounts differ too. 

The Institutional share class is available on Endowus for a minimum of S$1,000, the E share class is available on POEMS from as little as S$1.

#3 - Number of mutual funds available on each platform

When choosing the best mutual fund platform in Singapore, the number of funds available can be a key consideration. Based on the comparison, 

FSMOne offers the widest selection with 2,133 funds, providing access to over 100 fund managers.

POEMS follows closely with 1,961 funds, featuring 37 fund managers. 

To help you compare your options, here’s a look at how the fund variety differs across platforms:

#4 – Purchase using CPF and SRS funds

Among the platforms listed, FSMOne, POEMS, Endowus, DBS, and OCBC support the purchase of funds eligible for investment using SRS and CPF monies. 

However, Moomoo and Tiger Brokers currently do not offer this capability.

What would Beansprout do?

With so many platforms available, choosing the right one can significantly impact your long-term returns. 

Choosing the right platform to invest in mutual funds and unit trusts in Singapore depends on what is most important to you. 

If fund selection is your priority, FSMOne and POEMS offer a wide range of mutual funds to choose from.

For those focused on minimising costs, POEMS, Moomoo, and Tiger stand out with zero sales and platform fees. However, it’s also worth checking if Endowus offers the institutional share class of your desired fund, as this could mean lower overall fees despite some platforms waiving sales and platform charges.

If you’re looking to maximise bonus interest on your savings, purchasing funds through DBS or OCBC may help you to unlock higher interest rates.

If you are looking to buy stocks and ETFs too, check out our guide to the best online brokerage and stock trading platform.

Learn more about unit trusts through our comprehensive guide to unit trusts in Singapore. 

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