REGULAR SAVINGS PLAN
The Regular Savings Plan (RSP) utilises the
dollar cost averaging concept of investing a fixed amount of money
regularly regardless of market conditions.
For many investors, market timing - buying low
and selling high - is almost an impossible task, especially when fear
and greed typically lead investors to do the opposite of buying high
and selling low.
The main benefit of DCA is that it takes the
guesswork and emotion out of investing and instills discipline into
the investing process. Unit trusts are uniquely suitable for this
method as they can be bought with fixed amounts via an RSP.
With the DCA method, you can at least be sure
that you will be buying more units at the bottom of the market and
lesser units at the peak.
As a result, in rising or fluctuating markets,
the average cost for all the units can be lower than the average price
during the same period.