Asked by Anonymous
Asked on 28 Jun 2019
Can someone please advise me on it? As I’m really quite confused despite reading plenty of articles :(
For your investments to profit, you would need to look at both capital gain and total dividends over the years.
It is recommended that you invest for long term as cost price per unit will be optimise (more units bought when price is Low, less units when price is high) Over time, you will get dividends which you can reinvest.
Sell only when you really need the money.
As do with many other forms of investments, you generally hold the asset until you really need the cash (e.g housing/car). This is especially so for beginners who have yet to understand how to spot trends in market/pricing. For the RSP, you'll accumulate the units as you go and earn dividends. Sell the units only when you need the money not when market pickup or slump.