| Starting young |
Trading may be daunting to those who have not dabbled in it but interested parties can now get a first-hand feel through OCBC Securities’ new product. I n a joint effort with tertiary investment collective I-Cube, it launched the Young Investor Pack (YIP), a starter kit for firsttime investors. I-Cube is a student collective from the tertiary investment clubs of Singapore Management University (SMU), Nanyang Technological University (NTU) and National University of Singapore (NUS). YIP is their latest collaboration with OCBC Securities. Co-chairman of I-Cube Terence Lim says interest in investment and finance is increasing rapidly among young people and it is an appropriate time for YIP’s launch. “The number of people who are savvy, taking an active step and reading up is on the increase. We started out with 700 members but now total club membership is at 1,200,” says Mr Lim, a second year Banking and Finance student at NTU. About 900 students sacrificed their Saturday morning sleep-in and attended the YIP launch on March 15. Held at NTU, managing director of OCBC Securities Hui Yew Ping and chairman of Singapore Exchange (SGX) Hsieh Fu Hua graced the occasion with their presence. SGX vice president of Retail Business Development Richard Christopher Dyason also imparted his observations and experience to the attentive turnout at the ceremony. An “Amazing Race” style contest was also held to commemorate YIP’s launch. With a top prize of S$1000, more than 300 students competed in the race through the CBD (central business district), applying their financial knowledge and skills to solve quizzes and challenges. Necessary for knowledgeSingapore has the fourth largest stock exchange in the world and it only makes sense to prepare its youths for this profitable sector. OCBC Securities hopes the pack will help expand their financial literacy and abilities, grooming them into becoming adept and proficient investors. Through its involvement with I-Cube, it decided to cater specially to this demographic. “In 2007, new trading accounts by Singaporeans in their twenties accounted for 20 per cent of the total number of new accounts opened at OCBC Securities,” says OCBC Securities managing director, Hui Yew Ping. “The introduction of the Young Investor Pack is a breakthrough in our continuing efforts to guide young investors in their journey to become savvier investors in their own right. ”Mr Hui is excited about the product and hopes it will help them realise the importance of investing. Apart from relying less on CPF (Central Provident Fund) savings for one’s retirement, he emphasises on being aware of how world events affects everyone. “We as responsible adults cannot say it won’t affect our life. It will directly or indirectly affect us,” explains Mr Hui. “Even if it’s not the financial market, the rapid rise of oil price, the rapid rise of gold, the sharp decline of the dollar, impacts our economic system and it will be reflected in inflation. ” The pack consists of an online trading account with OCBC Securities, a reference guide to investing compiled by students from I-Cube, invites to a series of OCBC Securities seminars and a copy of “Winning Investment Habits of Warren Buffett and George Soros”. A simulated online trading account is also available to applicants under 21 years old. They can access the necessary tools to learn the ropes of investment, such as customised watch-lists, multi-channel alerts and research reports from OCBC’s research team. Learning from the volatile marketMr Hui feels the current volatile market should not deter youths from investing altogether. He thinks this is the best time for anyone to learn about cause and effect, and through others’ mistakes. “A lot of the results of leverage, overspending and overgearing are all revealing their negative impacts…this can’t be a better time because it is so interesting to see so many things happening – so many implications and new heights of risks, new understanding and new ways of managing,” says Mr Hui, citing Warren Buffett’s re-entry into the stock market as an example. He also maintains that it is a good way to learn about the stock market and how “a simple loan based on mortgage can trigger of a worldwide event”. Confident that the YIP will quell fears of investing, he hopes that it will encourage hands-on learning without the risk of monetary losses. “Learn it safely, play whatever you want, simulate whatever you want then go to the real world. Because the real world is quite harsh,” adds Mr Hui. “You don’t want to lose money and not know what you lose the money for.” YIP’s acceptanceWith more youngsters opening trading accounts, the YIP’s arrival could not have come at a better time – about 900 students have signed up. Business student You Yewei is embracing the YIP with much eagerness and feels he could learn more from the kit. “Although I have started investing on my own, I still find the Young Investor Pack with its various complementary elements quite attractive. With the pack, I hope to expand my investment knowledge and trading skills set,” says Mr You. With two years of experience in trading stocks and warrants, he hopes to exercise his financial foresight through trading futures and foreign exchange. Mr Lim shares the same sentiment and thinks YIP has potential to develop. He says it is only the beginning for likewise enthusiasts. “I hope the next effort will involve in-depth analysis of stocks and it will be an ongoing thing to become an educational curriculum for young investors.” says Mr Lim.
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