Dec 26 2013, 04:51 PM
QUOTE(yklooi @ Dec 26 2013, 04:18 PM)
it will take the emotional aspect of investing away with RSP
(RSP is automate...keep buying even mkt is down. if do it manually,...one may tend to time the mkt or stopped investing when the mkts are down)
without initial investment amount...
"forced" to practice DCA
hazzle free....need not have to remember to buy.
http://www.fundsupermart.com.my/main/resea...l?articleNo=456
You nailed it on the most important aspect - NO INITIAL INVESTMENT AMOUNT.(RSP is automate...keep buying even mkt is down. if do it manually,...one may tend to time the mkt or stopped investing when the mkts are down)
without initial investment amount...
"forced" to practice DCA
hazzle free....need not have to remember to buy.
http://www.fundsupermart.com.my/main/resea...l?articleNo=456
Usually the initial investment on a new fund is at least RM1000.
With the RSP, you can start a new fund with as low as RM100. and then follow with the same amount every month. This will be a true DCA strategy with equal amount instead of a big initial investment and then with smaller monthly amounts.
Another point is that without the initial minimal amount, it is easier to diversify and purchase several funds at the same time. Not necessary to be selective and pick only one fund.
Last point is that the RSP can be stopped anytime without penalty. A portfolio of funds could be built up using RSP. purchasing several funds at the same time; and stopping the purchase on any fund that has meet the required percentage within the portfolio.
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