Why Regular Savings Plan
The most important thing about setting goals in life is having one. Whether you are planning for retirement, saving for your children’s education or aiming to achieve other financial objectives, Regular Savings Plans (“RSPs”) could potentially help you reach your goals with peace of mind. RSPs are investment plans that offer a consistent and disciplined means of investment that provide access to stocks and unit trusts with low cost on a monthly basis. It takes advantage of the dollar-cost averaging approach that does not require you to time the volatile market.
“Time in the Market” rather than “Timing the Market”
It is difficult to time the market where the prices fluctuate all the time. However, by adapting the approach of dollar-cost averaging, it turns market fluctuations to your benefit. Instead of investing a lump sum of your money, you are gradually building your portfolio over a period of time with a smaller and fixed amount of regular investment.
If you are still waiting to time the market why not just starts with one that may average out the market’s peaks and troughs? Let the impact of time work at your advantage.
By investing a fixed amount of funds consistently every month over a period of time, dollar cost averaging benefits you regardless of price fluctuation. You purchase more units when the price is lower and fewer units when the price is higher.