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Our Process |
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| Regular Savings Programme |
| Regular Savings Programme (RSP) is a subscription plan that enables you to invest a fixed amount of money at regular intervals, usually monthly, into a particular unit trust. RSP is available for both cash or
CPF, depending on your preferred source of investment fund. By having RSP, you benefit from the strategy of
dollar-cost averaging. The same dollar amount is invested at regular intervals, for example, monthly, into a diversified investment portfolio. Regardless of market disturbances, you continue with this regular savings arrangement. Consequently, the price you pay for your unit trusts is averaged out when prices are low, more units are bought, vice versa. |
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| Besides the benefit of dollar-cost averaging, RSP has the beauty of compounding returns over a long investment horizon. Let’s look at a hypothetical investor who could choose between investing in a portfolio of unit trusts versus safekeeping his funds in a bank fixed deposit: |
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| Option 1: S$500 per month is kept in fixed deposits at 2% per annum. The value at the end of 30 years will be S$246,360. |
| Option 2: Invest S$500 every month to buy a diversified portfolio of unit trusts for 30 years. Assume a return of 10% per annum, the total investment outlay will be S$180,000. The investment value at the end of the 30 years will be S$1,130,240! |
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| Start having a long-term perspective when you invest! For the uninitiated investors, you can consider working with a
trusted adviser and construct a portfolio of unit trusts. |
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| Click here to contact a financial consultant. |
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