SMART Plan | Build long-term wealth with the DCA method of investing
09-26 17:00uSMART

 

     SMART Plan enables you to subscribe to periodic investment by investing a fixed sum on a regular basis based on your chosen interval from daily, weekly to monthly. This helps you accumulate your investment steadily and progressively.

     There are more than 10,000 US & SG stocks/ETF available for SMART Plan. The investment can be funded using the fund in your uSMART trading account, automatic e-GIRO deduction from your bank or combination of both aforesaid deduction method.

     With a fixed amount invested periodically, you can buy more shares when prices are low and fewer shares when prices are high. Over time, as you accumulate more shares when prices are cheaper, you will be able to potentially lower the average purchase price per share which known as Dollar Cost Averaging (DCA).  

     DCA is an investment strategy that may allow you to benefit from the volatile market. Because of the consistent exposure you get to the market, the idea is that you ride out the ups and downs in the long-term and benefit from the market’s upward trajectory.

 

What is SMART Plan?

     SMART Plan( so called Dollar-Cost Averaging) is a popular long-term investment strategy that can help investors mitigate risk by turning the market’s natural ups and downs to their advantage. It enables you to subscribe to periodic investment by investing a fixed sum on a regular basis based on your chosen interval from daily, weekly to monthly. This helps you accumulate your investment steadily and progressively.

 

How It Works?

     SMART Plan allows you to put aside as little as SGD100/USD100 for each investment.

     No extra fee for using SMART Plan, 0 commission & 0 settlement fee for trading US stocks.

     There are more than 10,000 US & SG stocks/ETF available for SMART Plan.

     The investment can be funded using the fund in your uSMART trading account, automatic e-GIRO deduction from your bank or combination of both aforesaid deduction method.

 

Benefits of SMART Plan

  1. Ease—SMART Planrequires no particular knowledge of the market, and it takes just minutes to set up with free automatic investing services offered by many financial institutions.
  2. Used for long-term goals—This style of investing is a good fit for building savings and wealth over the long term because gradual investing helps reduce the impact of day-to-day price fluctuations.
  3. Encourages action—By automatically investing at set intervals, it eliminates the tendency for investors to hesitate on the sidelines, waiting for the right time to invest.
  4. Accounts for volatility—Because investments are made over time at various prices per share, the strategy is particularly suited for riding the typical ups and downs of the market.

 

 

For more specific information, please click here.

 

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