Ringgit cost averaging is an investment method intended to reduce exposure to risk associated with making a single large purchase. The technique works by investing a FIXED AMOUNT on a particular investment at regular intervals (e.g monthly or quarterly) REGARDLESS OF A UNIT PRICE, whereby more units are purchased when prices are low and fewer units are purchased when prices are high.
Example : You want to save RM12,000 each year for your child's education fund by investing RM1,000 into a unit trust fund each month. In the period of one year there will be price volatility (high and low) but believe it, the power of RINGGIT COST AVERAGING has made your NUMBER OF UNITS PURCHASED normally high enough to cover and increase your investment at the end of the period.
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2 comments:
hye..minimum just RM 100 for starting or monthly?
i love this post... great post
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