Hopefully, you have started your journey in passive investing and have actually put your money down for various financial assets and securities.
In this article, we will discuss how to create an online investment portfolio with Google Finance. This online portfolio is to help record your transactions and allows you to monitor the performance of the individual financial assets or securities as well as the overall portfolio.
Google Finance is a useful tool for investors. It includes finance and investing news, stock charts and stock screeners. You can also input your stock portfolio and watch list to monitor. The url is: https://www.google.com/finance
We will now go through step-by-step how to create an online portfolio using the Google Finance platform.
We will be using the passive investment portfolio model described in “How to Create a Passive Investment Portfolio”.
We will assume the investment principle to create this portfolio is S$18,000 and it is divided based on the following asset allocation:
60% Equity, comprising of:
– 20% ($3600) in the SPDR STI ETF (Symbol ES3).
– 20% ($3,600) in the SPDR S & P 500 ETF (Symbol S27)
– 20% ($3,600) in the Vanguard FTSE All World Excluding the US ETF (Symbol VEU)
20% Bonds ($3,600) in the ABF SG bond ETF (Symbol A35)
10% Gold ($1,600) in SPDR Gold shares ETF (Symbol O87)
10% Cash ($1600)
In reality, it will be impossible to make up the exact allocation due to the difference in cost of the securities as well as the lot size that you have to purchase. The lot size is the minimum number of shares you can buy at one time. So, we will try to get as close to the model portfolio’s asset allocation as possible.
For the sake of discussion, we will assume that the above securities have been purchased through a stock broker and are held in our CDP account (for local securities) and the stock broker’s CDP account (for foreign securities).
This point of the online portfolio is to help record the above transactions and allow the performance of the individual financial assets or securities as well as the overall portfolio to be monitored. This is how you create the online portfolio on Google Finance:
First, you need to log into your Google account in order to create your portfolio. If you do not have one, sign up for one.
After logging into you Google account, go the Google Finance page at: https://www.google.com/finance
Click on the “Portfolios” link on the left-hand side menu. It is under “News”. This will lead you to the “Portfolios” page which should not have any portfolio if you have never created one before. Click on “Create new portfolio” on the top right of the page. You will be prompted to name your portfolio. I named it “Passive Investment Portfolio”.
Click on “Edit portfolio” in the top right corner under “Create new portfolio”. Change the “Default currency” to Singapore Dollar (SGD). This assumes you are trading in Singapore. That is, your bank and trading accounts are from Singapore.
You will now build the portfolio based on securities bought in the model portfolio described above.
Enter the symbol of the counters (also known as the stock tickers) into the box next to “Add symbol”. Assuming you start off with the SPDR STI ETF, enter ES3 into the box and a drop menu will appear. Select the correct symbol as shown below.
Continue adding all the symbols for the rest of the securities except for cash and click on “Add to portfolio”.
All the counters will now appear in the portfolio.
At the bottom of the last counter (in this case GLD US$ O87), you will see “Cash – Deposit/ Withdraw”. Click on “Deposit”. Enter a date (the date you create the portfolio or the date you placed your cash aside), followed by the amount. You can also indicate where you are holding your money. With a low amount like $1600, it will likely be in a savings account as it would be too little to put into a fixed deposit account or in a money market fund. Click on “Add to portfolio”.
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Next, click on “Edit Transactions” in the right top menu above the first counter. This will bring you to a page where you can add in the transaction details of each counter that you bought. You will need to log in to your stock broker’s online trading platform and check your past orders for some of the info like the date you bought the securities, the number of shares and the price per share.
You will have to work out the commission fees yourself. It is best to check with your stock broker’s website for the exact breakdown of fees for calculation. Different countries will have different fees as well.
For example, for Singapore counters on the SGX, most stock brokers charge 0.28% of the value of the order, for orders below $50,000 or a minimum of $25 whichever is higher. In addition, there are additional charges applicable to almost all stock brokers such as:
SGX Trading Fees (Contract Value x 0.0075%)
CDP Clearing Fees (Contract Value x 0.04%)
GST ((Brokerage + Trading Fees + Clearing Fees) x prevailing GST rate)
Calculate the total transaction fee for each counter and put it into the “Commission” box.
After you input all the information for all counters, click on “Save changes” at the bottom.
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You have now completed setting up your online investment portfolio on Google Finance. You can click on the various buttons on the top left menu, under the name of your portfolio, for different information on your portfolio. For example, if you click on “Performance”, you will see how your portfolio is currently performing based on current market prices, against your transacted prices.
To add, delete or modify any component of the online portfolio, simply make the adjustments based on the steps above.
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