5 steps to a healthy portfolio
Most of us have regular medical check-ups so that any health issues can be identified at an early stage and get addressed properly. Our investment portfolios require similar care.
POSTED ON 05 JANUARY 2019
Dollar-cost averaging is when you contribute a fixed amount each month to invest on a regular basis, such as to buy into a chosen fund. The premise of dollar-cost averaging is that you can never perfectly time the market to buy low and sell high all the time, hence investing in a Regular Savings Plan allows you to buy more units when prices are low and fewer units when prices are high.
Although this strategy does not protect you from market fluctuations, the average cost of investment overtime could be lower compared to when you make one-off investments.
An individual invests $1,000 into a fund every month.
The market dipped in April and May but the investor continued to follow a regular investment plan.
When markets recovered in July, the investor's regular investment plan has resulted in the purchase of 4,136 units, valued at $5,170.
By comparison, if he had invested a lump sum of $5,000 in
March, the value of investment would have remained unchanged
It is impossible to predict when the best and worst returns will occur. This strategy is especially useful in a volatile market or when you are unsure of where the market is headed.
From the perfect wedding to your dream honeymoon and every beautiful moment in between, save for your big day by investing in a RSP.
Because play time, study time and holiday time all add up - grow your savings with a RSP to give your child a head start in life.
Take the exciting step towards having a place to call your own and invest in a RSP to help you save up for one of life's most important purchases.
Whether it is the latest model, a coveted designer piece or some me-time at an exotic location, start saving with a RSP to realise your desires.
Total amount I want to save
Max to 500,000
Years to reach my savings goal
Estimated rate of return (% per annum)
This is the annualized profit you anticipate from your RSP investment. A higher expected return typically implies higher risk.
This video/webcast/article is provided at your specific request and for general information purposes only. It is not intended as a recommendation nor an offer or solicitation for the purchase, loan, swap or sale of securities, financial products, services or currencies. Neither all nor part of this video/webcast may be reproduced or copied in any manner without the written consent of Citibank N.A. or its affiliates or subsidiaries ("Citi"). This video/webcast/article has been prepared without taking account of the financial objectives, situation, or needs of any particular investor. Any person or entity considering an investment should consider the appropriateness of the investment having regard to their financial objectives, situation, or needs, and should seek independent advice on the suitability or otherwise of a particular investment.
Not Bank Deposits • Not Bank Guaranteed • May Lose Value • Not FDIC Insured • Not Offered to US Persons • Are subject to investment risks, including the possible loss of the principal amount invested.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
All content found on this site are strictly for information purposes only, and all estimates are made on a general basis only. The calculator is intended to be used for illustrative purposes and has not been tailored to your specific investment objectives, financial information or particular need. You should not rely on this calculator to make any investment decisions, and should consult with your own financial advisor prior to entering into a transaction.
The calculations shown above are derived from the information provided by you and should not be regarded as an advice or recommendation by the Bank. The calculation assumes a simple annuity due formula with payment made at the beginning of period and interest compounded on a monthly basis. The Bank shall not be liable for any error and/or loss suffered as a result of using the calculator.