Regular Savings
| Offshore Financial Products | Offshore Center | Regular Savings | Health Insurance | Life Insurance | US Tax | Land Banking |
|---|---|---|---|---|---|---|
| Offshore Funds | Hedge Fund | Mutual Fund | Capital Protected Fund | Real Estate Investment Trust |
Why regular savings?
By investing smaller amounts over a longer period of time, you can benefit from dollar cost averaging.
Dollar-cost averaging is a strategy in which a person invests a fixed dollar amount on a regular basis, usually monthly purchase of shares in a mutual fund. When the fund's price declines, the investor receives slightly more shares for the fixed investment amount, and slightly fewer when the share price is up. This strategy results in lowering the average cost per unit, by taking advantage of any market decline as a buying opportunity.
For example, if you invest 6,000 per year during 10 years, you can purchase a total number of 2,016 shares, but if you invest 60,000 on day 1 you can only purchase 1,200 shares. Moreover, even if the NAV (net asset value) is the same on day one as the maturity date, you will still gain more by investing on a regular basis.
