Systematic Investment Through Automated Debit

For most people, systematic investment makes a lot of sense: it's much easier to invest a little every month than to find a big lump sum to invest once a year. And with automated debit, you don't have to lift a finger: the money automatically goes into your investment account.

WHAT'S IN IT FOR YOU?

  • No front-end, back-end or other administration fees
  • Minimum contribution: $25
  • Automatic debit from your bank account
  • You choose the amount and frequency of your contributions
  • Switch from one mutual fund to another within the same program without charge
  • Spread your annual RRSP contribution throughout the year
  • Take advantage of dollar-cost averaging.

MAXIMIZE YOUR SYSTEMATIC INVESTMENT

This example clearly shows that a bigger monthly contribution results in an investment that grows faster.

Calculations are based on an annual compound return of 4.25%.

DOLLAR-COST AVERAGING

Dollar-cost averaging refers to the average price you pay for a unit over a given period of time. Systematic investing helps you minimize the impact of downward fluctuations in the price of mutual fund units.

This is how it works: when the unit price is low, your monthly amount buys more units, and when unit prices are up your amount buys fewer units. But over the long run, the average dollar-cost of those units is likely to be lower than the units you would have bought with your single annual contribution.

Ask your advisor about it.