1) You need a POSB savings account
2) You will need to set aside $100 min a month
3) Go setup the GIRO process online or ATM machine
4) Do nothing ever again and let the money grow
Here is the link:
What is an index?
It tracks selected companies listed on the exchange. Mostly it consist of high quality companies, if the company doesn't do too well, it may get kick out of the index and replaced with a better one. In doing so, I feel the index is a safe haven, tho the growth is slow, it's safe and consistent.
So why this particular one? I recently found out about this while coaching a class. The brokerage charges are crazy low! At 1%!!! $1... where the hell do you get that ever?!? Why is this awesome too? Well, it's hands off. Set it up once, the forget about it, it's like forced savings while being invested in the index!
You have to stay committed and do not withdraw, by using dollar averaging, it's mostly a win situation after a long term. This is NOT a short term thing.