A slice of the pie: fractional investing deconstructed

Buying a share of Amazon or Nvidia sounds straightforward until you look at the price tag. At the time of recording, a single share of each of the Magnificent Seven companies would collectively set you back close to $2,400. Fractional investing changes that equation, letting you put in exactly what you have rather than what the market happens to charge for a whole unit. But how does it actually work, and what are you giving up when you own a piece rather than the whole thing?

In this episode of Money Hacks, a podcast by The Business Times Howie Lim is joined by Jeremy Foo, country manager at StashAway Singapore, and Jack Prickett, chief commercial officer at Syfe, to cut through the noise around fractional investing. Two practitioners, two platforms, and a genuinely useful conversation about what fractional investing can and cannot do for everyday investors. 

Why listen

• Whether fractional shares are as liquid as whole shares in a stressed market It is one of the first questions any sensible investor should ask and the answer is more reassuring than you might expect.

• What it actually costs and where to watch out The fee structures are simpler than they used to be but there is one scenario where costs can quietly bite. Both guests are upfront about it.

• How fractional investing enables more precise portfolio construction Getting a 2 per cent allocation into a specific ETF rather than having to round up or down sounds like a small thing until you are managing a portfolio across a dozen positions.

• How your money is protected and where it sits when you are not looking Custody arrangements, two-factor authentication and withdrawal rules are all covered plainly and without jargon.

Whether you have $10 or $10,000 to invest, the mechanics matter. This episode explains them honestly. Listen now. 

Money Hacks is the flagship personal finance podcast from The Business Times. Catch past episodes at bt.sg/podcasts. Have a burning question or episode idea? Email the team at btpodcasts@sph.com.sg.

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Jeremy Foo, country manager, StashAway Singapore and Jack Prickett, chief commercial officer, Syfe

Edited by: Howie Lim & Claressa Monteiro

SEE ALSO

Nest egg obsolete: fishing skills now equal financial security

With growing ways to get into fractional investing, platforms strive to set themselves apart

Produced by: Howie Lim & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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