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?
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 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.