Asked on 11 Sep 2019
The DBS agent mentioned that we can only put in a constant amount of money every month. Is that fine? I was thinking of doing dollar cost averaging every month and put in different amount depending on the prices but RSP doesn't allow for this if I want to maximize my multiplier account. Is it still okay to go with a constant amount every month?
Top Contributor (Oct)
Constant Dollar Amount is good for RSP.
Say prices go up, you buy fewer units with a fixed $200. Your current assets rise in price anyway, so not a bad thing.
Prices go down, you buy MORE units with the fixed $200. Your current asset dropping in price, but you are averaging per month.
May not sound like much, but do it regularly monthly for a few years, you will appreciate the consistent investments that add extra growth.
See all 3 comments
13 Sep 2019
As Cedric mentioned, with dollar cost averaging, you avoid the risks of lump-sum investing since you invest smaller, consistent amounts during both good and bad market conditions. Over the long term, your returns average out to mirror the overall market performance.
A RSP is good if you want exposure to Singapore equities. But if you want a globally diversified ETF portfolio, you can consider digital wealth managers like Syfe. Syfe has no minimum investment amount and you get the freedom to decide how much to invest each month.