How To Invest In Blue Chip Stocks With OCBC BCIP (Review)


Are you constantly worrying about finding the right time to buy your stocks?

You can consider a dollar cost averaging strategy instead.

Here’s where OCBC’s Blue Chip Investment Plan (BCIP) may help you.

By using this Regular Savings Plan (RSP), you are able to dollar cost average into a variety of blue chip stocks and exchange traded funds!

What is the OCBC BCIP?

The OCBC Blue Chip Investment Plan (BCIP) is a regular savings plan by OCBC.

This savings plan allows you to invest in 20 different counters.

This includes:

  1. 17 individuals stocks that are part of the Straits Times Index
  2. 3 ETFs listed on the Singapore Exchange (SGX)

The OCBC BCIP plan allows you to use a dollar cost averaging approach when buying a counter.

The price of the counter will change over the months. When you invest the same amount of money each month, the number of units you buy will be different. When the price is high, you will buy less units, and when the price is low, you will buy more units.

In the long term, the average price of the counter will be somewhere between the highest and lowest prices that you’ve paid.

This will help to reduce your tendency to time the market. Moreover, you do not need to check your stocks everyday as the price will eventually average out.

This will help to remove your emotions from investing!

Is the OCBC BCIP different from OCBC RoboInvest?

The OCBC BCIP is a regular savings plan while OCBC RoboInvest is a robo-advisor.

Even though they are provided by the same bank, they are 2 very different investment products!

How do I apply for the OCBC BCIP?

To get started with the OCBC BCIP, here are 3 things that you’ll need:

  1. OCBC deposit account
  2. OCBC iBanking
  3. OCBC SRS account (if you wish to invest your SRS funds)

One thing to note is that you can only have one SRS account.

You may have a SRS account with UOB or DBS. The good thing is that it is possible to switch from either one to OCBC.

Here’s what you need to do to get started:

  1. Apply for an OCBC Blue Chip Investment Plan account
  2. Select how much and what counter you wish to invest in
  3. Amend your plan if needed

Apply for an OCBC Blue Chip Investment Plan account

After creating your OCBC account, you can apply for a BCIP account via OCBC’s iBanking platform.


You can choose to create a normal account or a joint account.

A joint account can only be created for an adult parent with a legal child (under 18 years old).

Your application will take about a week to be processed, and you will be notified via SMS.

OCBC BCIP Application

Select how much and what counter you wish to invest in

The OCBC BCIP has 20 different counters for you to choose from.

OCBC BCIP Choose Counters

You can choose which stock or ETF that you wish to purchase.

After that, you’ll need to select your monthly investment amount.

You can start investing from $100 a month. If you wish to invest more, you can invest in further multiples of $100.

After submitting your application, you will need to select the account that you’re debiting from. This account has to be an OCBC account.

A GIRO application will then be made to deduct the amount from your account.


Amend your plan if needed

If you wish to amend your plan, you can do so anytime on the iBanking platform.

OCBC BCIP Amend Plan

Here are the types of amendments you can make:

  1. Change your investment amount
  2. Stop investment / cancel application
  3. Add new counters
  4. Change your settlement account

Change your investment amount

You can choose to change the amount you want to invest each month for each counter.

OCBC BCIP Amend Monthly Investment

Do remember you can only invest in multiples of $100!

Stop investment / cancel application

You may want to stop your current plan or cancel the application of your plan as well.

OCBC BCIP Cancel Investment

Add new counters

You can choose to add a new counter to invest in using the BCIP.

OCBC BCIP Add New Counter

Change your settlement account

You can choose to change the account where your money is deducted from to invest in the BCIP. This same account will be the one where your dividends are credited into as well.

You will be able to change to any account you have with OCBC, such as:

  1. OCBC Monthly Savings Account
  2. OCBC FRANK Account
OCBC BCIP Change Debiting Account

If you make any amendment requests before 12pm on the last business day of the month, it will only be effective by the next month.

This is because the GIRO application will take some time to be processed.

How does the OCBC BCIP work?

Here’s a step-by-step process of how the OCBC BCIP works:

  1. Deduction from your bank account
  2. Purchase of counter based on your instructions
  3. Receive statements

Deduction from your bank account

The money will be deducted via GIRO on the 17th day of each month. If the 17th day is not a business day, the deduction will occur on the next business day.

OCBC BCIP Deduction

You will have to ensure that you have enough money in your deposit account so that the deduction goes through.

If there are 3 consecutive failed deductions, your purchase instruction will be terminated!

If you are investing using your SRS account, the deduction will occur 3 business days before the purchase execution date.

If you do not have enough money in your SRS account, the money will be deducted from your deposit account.

Purchase of counter based on your instructions

OCBC will purchase the counter for you based on the instruction that you’ve set. The purchase date will be on the 22nd day of each month.

If the 22nd day is on a non-business day, the purchase will be executed on the next business day.

The BCIP only allows you to purchase whole shares. As such, you will not be able to own fractional shares with the BCIP.

Average purchase price

The price you pay for the counter is the average purchase price.

OCBC will gather all the purchase orders made by their customers for that counter. They will then execute these orders in the market.

These orders may not happen at the same time. As such, the price of the counter may vary.

OCBC will charge you the average purchase price for that specific counter.

Average purchase price = total cost of purchasing all counters / quantity of counters purchased

Quantity of shares allocated

You will be allocated the number of shares based on this formula:

Quantity of shares allocated = (Your Investment amount – Fees) / Average Purchase Price

The quantity of shares you are allocated will be rounded down to the nearest whole number.

Still confused? Here’s an example:

You are investing $200 a month into a counter. The average purchase price of the counter is $10, and the fees that you have to pay is $5.

You will be allocated 19 shares (($200 – $5) / $10 rounded down).

So what happens to the $5 that is not invested?

It will be refunded back to your deposit account.


You will be refunded the amount a few days after the purchase date.

Receive statements

After your funds have been invested into a counter, you will receive a statement by mail that shows you:

  • The number of units of the counter you’ve purchased
  • The price that you paid for the counter
  • The fees that you paid
OCBC BCIP Transaction Statement

Unfortunately, this is the only way for you to check your transaction history.

The iBanking platform does not allow you to do so.

At the end of each month, you will receive a statement as well.

OCBC BCIP Monthly Statement

This statement includes:

  • The transactions you’ve made
  • Your total holdings

Alternatively, you can check your balance on the iBanking platform as well.

At the homepage, you can scroll down to the investments tab.

OCBC BCIP Investments Tab

When you click on the account, here are the things that you can view:

  1. The counters you’ve purchased
  2. The settlement method you’re using (Cash / SRS)
  3. The number of shares / units you have
  4. The current unit price
  5. The estimated market value of your holdings

Unfortunately, you are unable to view the average price that you’ve bought the counter at.

This is a feature that I wish the BCIP would have. It would be more useful to compare your average price vs the current market price.

If you’re interested tracking your portfolio in greater detail, you can consider trying out StocksCafe.

What counters can I invest in using the OCBC BCIP?

There are 3 major types of counters that you can invest using the OCBC BCIP:

  1. Stocks
  2. Real Estate Investment Trusts (REITs)
  3. Exchange Traded Funds (ETFs)


There are 16 individual stocks that you can choose from. These stocks are all found in the Straits Times Index.

These include:

Stock NameSGX Code
CapitaLand LimitedC31
Corporation Limited
DBS Group
Holdings Limited
Keppel Corporation LimitedBN4
Olam International LimitedO32
Oversea-Chinese Banking
Corporation Limited
Industries Limited
SembCorp Marine LtdS51
Singapore Airlines LimitedC6L
Singapore Exchange LimitedS68
Singapore Press Holdings LimitedT39
Singapore Technologies
Engineering Limited
Telecommunications Ltd
StarHub LtdCC3
United Overseas
Bank Limited
Wilmar International

These stocks are considered as the blue chip stocks of Singapore.

These companies usually have a very good reputation with strong financial health.

When you invest in these blue chip stocks, there is usually a lower risk compared to growth stocks.

However, low risk doesn’t mean no risk!

Real Estate Investment Trusts (REITs)

REITs are funds that invest in income-generating real estate assets.

You will mainly earn returns from the dividend yield of the REIT. This dividend is usually based on the rental income that the REIT receives from all of its assets.

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Currently you are only able to buy one REIT, which is CapitaMall Trust (C38U).

However, in a recent review, FTSE Russell decided to remove Singapore Press Holdings (SPH) from the STI. SPH was replaced by MapleTree Industrial Trust, another REIT.

The STI now has 6 REITs in its index.

OCBC did mention in their FAQs that they may add or remove counters from the BCIP based on the constituents of the STI.

As such, you may be able to invest in more REITs using the BCIP in the future!

Exchange Traded Funds (ETFs)

Exchange traded funds are funds that are able to be traded in the stock market.

These funds will buy different investments, usually based on an index.

When you buy a share in the fund, you are diversifying across the different investments of that fund.

Here are the 3 ETFs that you can buy, with the index that it tracks:

ETFTickerAsset ClassIndex Tracked
Nikko AM Singapore
G3BStocksFTSE Straits Times Index
Nikko AM SGD Investment
Grade Corporate Bond ETF
A35BondsiBoxx SGD Non-Sovereigns
Large Cap Investment Grade Index
CLRREITsMorningstar® Singapore
REIT Yield Focus IndexSM

A35 is one of the bond ETFs being listed on the SGX. You can view my comparison of how A35 and the other ETF, MBH differ from each other.

ETFs will buy into all the investments in the index. You are essentially buying into a basket of stocks, bonds or REITs.

This helps to lower the risk involved with investing. You are depending on the performance on different investments, instead of just one.

However, you will have to pay for the expense ratio of the fund.

This is on top of the transaction fee that you have to pay when using OCBC BCIP.

Here’s the expense ratios of the 3 ETFs:

ETFExpense Ratio
Nikko AM Singapore STI ETF0.3%
Nikko AM SGD Investment
Grade Corporate Bond ETF
Lion-Phillip S-REIT ETF0.58%

The Lion-Phillip S-REIT ETF has the most expensive expense ratio of 0.58%.

This is something you’ll need to consider as well before starting to invest in the ETF.

Even though the expense ratio may seem small, it will eat into your returns in the long run!

Can I receive dividends when investing using the OCBC BCIP?

Depending on the counter that you purchase, you may be eligible for dividends.

The dividend that you receive varies from counter to counter.

To track all the dividends that you’re receiving, you can consider giving StocksCafe a shot!

Usually, the company will announce the dividend they will issue to their shareholders.

There are 3 types of dividends that you may receive:

  1. Cash
  3. Choice

Cash dividend

This is the most common dividend that you’ll receive.

The company will announce the cash dividend that they will issue for each share you own.

The dividend will then be credited into your deposit account.

Here’s the dividends that I received from investing in DBS shares.

OCBC BCIP Dividend


Companies may offer you a dividend in the form of more shares.

If you receive a share dividend, it will be credited to your BCIP account.


A company may offer you a choice dividend.

You can choose to receive the dividend in the form of cash or shares.

Can I reinvest my dividends from the BCIP?

You may have heard of reinvesting your dividends. This will help you to compound your returns even further!

However, OCBC BCIP does not explicitly allow you to reinvest your dividends.

Here are 2 possible options that you can consider when reinvesting your dividends:

  1. A one-off increase in your contribution to the BCIP
  2. Reinvest your dividends into a robo-advisor

A one-off increase in your contribution to the BCIP

You can choose to increase your contribution into the counter that you’re investing in.

However, you can only invest with BCIP in multiples of $100.

As such, you may decide to increase your contribution to the BCIP when your dividends reach $100.

This can be a rather tedious process.

Any amendments to your plans will only take effect in the next month. This means that you’ll have to anticipate the dividends that you’ll earn. You would then have to amend the plan one month before the dividend issue date.

Afterwards, you will need to amend your plan again to reduce your contribution!

This is something that I would not recommend as it requires constant monitoring of your account.

If you forget to reduce your contribution to the original amount, you will be paying $100 extra each month!

Reinvest your dividends into a robo-advisor

You can consider placing your dividends into a robo-advisor instead.

Robo-advisors such as StashAway, Syfe and UOBAM invest do not have a minimum sum to invest with them.

You’ll be able to invest all of your dividends into these platforms, no matter how little!

I personally prefer this method as this allows you to invest your dividends immediately.

What are the returns for the BCIP?

With the OCBC BCIP, you are buying into a single stock or ETF.

As such, the returns you receive depend heavily on the performance of the stock / ETF.

Usually, the counters are rather well established. You most likely wouldn’t go wrong when you invest them.

However, this doesn’t mean that you can just invest any counter!

I encourage you to research on the stock / ETF first before investing in it.

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By knowing how the company works, it will help you decide if it is worth investing in them.

What are the fees I will incur when using OCBC BCIP?

There are 2 main fees that you will incur when investing with the BCIP:

  1. Transaction fee
  2. Transfer of shares fee (to CDP or other financial institution)

Transaction fee

Each time you purchase a counter with the BCIP, you will incur a transaction fee.

This fee is incurred whenever you make a buy or sell order. The fee is calculated based on the total investment amount or the total sale proceeds.

There are 2 fee structures available based on your age:

  1. BCIP customers below 30 years old
  2. All other BCIP customers

BCIP customers below 30 years old

The fee structure is slightly more attractive when you’re below 30 years old:

Transaction TypeFee
Buy0.88% of total
amount invested
Sell0.88% of total
amount sold
SRS Processing Fee$0.37

However, you can only invest up to $500 per counter to receive this preferential rate.

It is a great way for young people to start investing due to this cheaper fee.

All other BCIP customers

Once you are above 30 years old, the fees are much more expensive:

Transaction TypeFee
Buy0.3% of total amount
invested (min. $5)
Sell0.3% of total amount
sold (min. $5)
SRS Processing Fee$0.37

While the fee looks lower at 0.3%, there is a minimum fee of $5.

This means that if the 0.3% fee is less than $5, you will be charged $5.

The only way you incur a 0.3% fee is when you invest at least $1700 each month!

Fee PaidPercentage of
Amount Invested

Based on the table above, you will pay lower fees only if you are able to invest a larger sum each month.

If you are above 30 years old and can only invest a small sum each month, the BCIP may not be suitable for you.

There are more cost effective ways of investing. You may want to consider investing with a robo-advisor instead.

Transfer of shares fee

The shares that you own are under the custody of OCBC. You do not have full control over these shares.

If you wish to fully own your shares, you will have to transfer these shares to your Central Depository (CDP) account or another financial institution.

You may also want to transfer these shares to another owner.

Here’s the breakdown of the fees:

Type of TransferFee
Change of beneficial owner3bps of settlement value, min $150, per settlement instruction + GST
No change in beneficial owner / Transfer to immediate family
(per transaction)
$10 + GST

A change of a beneficial owner means that the shares are transferred to an account that is not in your name. This includes both single and joint accounts.

The fees are pretty costly. As such, you should consider carefully before you wish to transfer your shares out!

How do I sell the stocks I have in the OCBC BCIP?

It is possible to sell the shares that you have in the BCIP.

You would have to go to ‘Blue Chip Investment Plan → Sell My Holdings‘.


You will be asked how many units you wish to sell.


One thing to note is that your counter will not be sold immediately.

If you make the sell order before 2.30pm on any business day, your shares will be sold on the next business day.

You should receive your funds 3 business days after the sell order has been executed.

This means that you’ll may have a time lag before you can sell the counter!

Within this day, anything can happen to the market.

You may experience something similar to the March 2020 market crash!

As such, the BCIP is only for a long term investing strategy. You will be unable to take advantage of short-term price changes due to the lag time between the placing and execution of a sell order.

Do I own my stocks in the OCBC BCIP?

When you invest in the BCIP, you do not need a Central Depository (CDP) Account or a custodian account.

Your shares will be under the custody of OCBC. Here are the 2 places that your shares are under:

Funds UsedShares Are Under
CashOCBC Securities
Pte. Ltd 
SRSOCBC Nominees
Singapore Private Limited

This means that you do not have full custody of your shares.

You do not have any voting rights as a shareholder, and you will not receive an annual reports from the company.

I have been investing in DBS using the BCIP. I tried to apply to attend the DBS AGM, but was rejected.


As such, you do not have the same privileges as a recognised shareholder of the company!

How can I transfer out my shares?

If you wish to have full custody of your shares, you may want to transfer them out to your CDP account or to another financial institution.

You will have to go to an OCBC branch to collect and fill up the transfer form.

You will need to bring along some documents, as listed below:

OCBC BCIP Transfer Shares Documents Required
Source: OCBC

You will incur ‘transfer of shares‘ fees as well.

However, you can only transfer out shares that you’ve paid in cash.

If you used SRS to purchase them, you are unable to transfer them out.

Is the BCIP worth investing in?

Here are the pros and cons of investing with the OCBC BCIP:

Able to start investing
with $100 a month
Fees can be quite hefty when
you reach 30 years old
Able to invest in individual
blue chip stocks
You will incur both transaction and management fees when you invest in ETFs
Able to invest SRS fundsSell orders are only executed
on the next business day
GIRO applications are
made on your behalf
Investing using SRS funds
incur additional processing fees
Fees are attractive if you’re
below 30 years old
REIT investing options
are rather limited
Dividends are credited directly
to your OCBC debiting account
Unable to reinvest dividends
Shares are not under your full custody

The OCBC BCIP allows you to invest into stocks or ETFs via a dollar cost averaging approach. This is a great way to cultivate an investing habit, even with a small sum.

Currently, only the OCBC BCIP and POEMS Shares Builder Plan allows you to invest in individual stocks using a RSP.

Although POEMS offers 44 counters, their fees are much more expensive.

Depending on the number of counters you invest in, you will be charged a flat fee of $6 – $10 each month!

As such, the OCBC BCIP may be more cost effective.

If you wish to invest in ETFs, POSB Invest Saver may be a cheaper option for you. It charges you a transaction fee of 0.5% or 0.82% (depending on the ETF you choose).

As such, I would only recommend investing in the BCIP if:

  1. You are less than 30 years old
  2. You only have a small sum to start investing
  3. You want to invest using a dollar cost averaging approach
  4. You wish to invest in individual stocks

I would only consider investing in the BCIP after 30 years old if I have at least $600 to put in each month.

However, this can be a pretty significant sum. I would suggest not to concentrate your portfolio solely on one stock or ETF.

If the stock or ETF decides to take a nosedive, your portfolio will be severely impacted!

Currently, my plan is to accumulate as much DBS shares as I can before I reach 30 years old. Once I’m 30, I’m planning to cancel the plan as the fees will be too expensive.

The BCIP is a good way to accumulate individual blue chip stocks when you’re at a young age. However, you may want to consider other options once you grow older.

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  1. How does the OCBC BCIP work?

    The BCIP is a regular savings plan (RSP). You will invest the same amount of money each month into a stock or ETF via a dollar cost averaging strategy.

  2. What fees does OCBC BCIP charge?

    OCBC BCIP charges a transaction fee for every buy or sell order, and a transfer of shares fee if you wish to transfer your shares to a CDP account or another financial institution.

  3. Is OCBC BCIP and OCBC RoboInvest the same?

    Although they are provided by the same bank, the two of them are very different investment products. OCBC BCIP is a regular savings plan while OCBC RoboInvest is a robo-advisor.

  4. What is the deduction date for the OCBC BCIP?

    Your fees will be deducted on the 17th day of the month. You will have to make sure that you have the investment amount in your account 2 days before the deduction.

  5. Can I receive dividends from the OCBC BCIP?

    It is possible to receive dividends from the stock or ETF that you have invested in. The amount that you receive depends on the stock or ETF, and the dividend will be credited to your OCBC account.

  6. Will I receive statements when I invest in the BCIP?

    You will be mailed a transaction statement as well as a monthly statement.

  7. How can I stop my BCIP investment?

    In the iBanking platform, you will have to go to ‘Blue Chip Investment Plan → Amend My Plan → Stop Investment’.

  8. How can I sell my BCIP holdings?

    You can go to ‘Blue Chip Investment Plan → Sell My Holdings’. The sale will take place on the next business day, provided you make the sell order by 2.30pm.

  9. Can I reinvest my dividends received from the BCIP?

    OCBC BCIP does not provide you the option of reinvesting your dividends. 2 ways that you can do so are by making a one-off increase in your monthly contribution or to transfer your dividend to a robo-advisor.

  10. Do I have full ownership of the shares I have with OCBC BCIP?

    You do not have full custody of the shares that you have bought with the BCIP. As such, you will not have the full rights of being a shareholder of that company.

  11. Can I create a joint account for the BCIP?

    You can create a joint account with your legal child who is below 18 years old.

  12. What are the returns when I invest in the BCIP?

    The returns you receive depend heavily on the performance of the stock or ETF in the market. The BCIP is not a risk-free way of investing. As such, you should always do your research before choosing to invest in one of the counters.

  13. What is the purchase date of the BCIP?

    The counters will be purchased on the 22nd day of each month.

  14. What counters can I invest with BCIP?

    You are able to invest in 20 counters. 17 of them are stocks or REITs that are components of the Straits Times Index, while the other 3 are ETFs that are listed on the SGX.

  15. Can I invest in the OCBC BCIP using SRS?

    You can use your SRS funds to invest with the BCIP. However, you will incur an additional processing fee of $0.37 for each transaction you make.

  16. Is the OCBC BCIP good?

    The OCBC BCIP is a good way to start investing if you only have a small sum of money to invest each month and are below 30 years old. It uses a dollar cost averaging approach, which helps you to remove emotions when you invest. However, the fees can be pretty hefty once you are above 30 years old. As such, you may want to consider alternative ways to invest instead.

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