Dollar-Cost Averaging

Market fluctuations make it difficult for investors to determine precisely when to capitalize on an investment opportunity. Setting up an Automatic Savings Plan (ASP) reduces the impact of market fluctuation by taking advantage of dollar-cost averaging. 

How dollar-cost averaging works

Dollar-cost averaging involves investing the same amount of money at regular intervals over a certain period of time, regardless of price. Making regular fixed-dollar contributions to an investing solution such as a mutual fund, for example, you’ll likely invest during times of high and low prices, which helps to average out your returns. 

Benefits of setting up an Automatic Savings Plan:

• Makes saving a habit with automatic deductions and deposits
• Provides flexibility to customize the timing and amounts of your contributions to best suits your budget and goals
• Eliminates the need to come up with a large lump sum amounts to invest
• Builds savings effortlessly while taking advantage of compounding and dollar cost averaging