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.
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!
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 2014.
For more information, please visit any of our POSB branches. Our Personal Financial Managers will be happy to assist you.
* Terms and conditions apply