Regular Savings Plan
Unit Trust Regular Savings Plan can help you on your investment journey.
Asia is set to become the biggest driver of world growth, outstripping even the world’s developed economies for the first time. Here in Asia, we are well-placed to capitalise on some of the best investment opportunities the markets have to offer.
If you are keen to participate in the growth potential from stock markets, you can achieve this by investing in unit trusts which provide a diversified portfolio and by practising regular investing through dollar-cost averaging. Remember what’s important is “time in the market, not timing the market”. Unit Trust Regular Savings Plan(RSP) will help you become a disciplined investor to reap the eventual benefits of the markets’ long-run secular uptrend.
How does RSP work?
- With a RSP you make fixed monthly investments, regardless of market conditions
- You avoid the uncertainties of market timing, by not speculating on the “right” time to invest your capital as a lump sum
- By investing a regular sum each time, you have the benefit of “dollar cost averaging” through buying fewer investment units when prices rise but more units when prices fall
- Over time, your average unit cost is lower than the average market price of the security during the same period of time
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This table illustrates the number of investment units an investor buys every month if he invests S$500 into the market via Unit Trust Regular Savings Plan.
| Month |
Monthly Investment Amount |
Unit Price |
Unit Purchase Each Month |
| January |
S$ 500 |
S$ 9.00 |
55.6 |
| Febuary |
S$ 500 |
S$ 10.00 |
50.0 |
| March |
S$ 500 |
S$ 8.00 |
62.5 |
| April |
S$ 500 |
S$ 11.75 |
42.6 |
| May |
S$ 500 |
S$ 12.25 |
40.8 |
| June |
S$ 500 |
S$ 9.00 |
55.6 |
| Total |
S$ 3,000 |
S$ 60.00 |
307.1 |
Figures are for illustrative purposes only.
Average Unit Price: S$10.00 (S$3,000/6 purchases)
Average Unit Cost: S$9.77 (S$3,000/307.1) units
As seen in the table, if an investor invests regularly into the market, he pays S$9.77 per unit, which is lower than the market average price of S$10 per unit over the same period of time!
Enjoy a 0% sales charge* on RSP until 31 Dec 2012
In addition, when you participate in a RSP at POSB, you will enjoy a 0% sales charge on your cash investments up to $500 per month from now until 31 Dec 2012.
For more information, please visit any of our POSB branches. Our Personal Financial Managers will be happy to assist you.
* Terms and conditions apply