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Monthly Investment Plan
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Why Monthly Investment Plan? |
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1. |
Dollar cost averaging helps you lower your investment costs With a fixed monthly investment amount for the Monthly Investment Plan, the average cost per unit price will be lower since you may buy more units when unit price is low, and buy fewer units when unit price is high. If you invest in a monthly fixed amount persistently, your average unit cost will be lower when compared with the same total investment amount with lump sum subscription.
In addition, with dollar cost averaging effect, you can minimise the risk of substantial loss when the market goes downward since the average unit cost is lower than if you subscribe in lump sum.
Here is an illustration to explain how dollar cost averaging works:
| Subscription Date |
Subscription Amount (HKD) |
Fund Unit Price (HKD) |
Unit purchased |
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8/6/2006 |
$2,000 |
$10.0 |
200.00 |
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8/7/2006 |
$2,000 |
$10.5 |
190.48 |
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8/8/2006 |
$2,000 |
$9.0 |
222.22 |
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8/9/2006 |
$2,000 |
$11.0 |
181.82 |
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8/10/2006 |
$2,000 |
$11.5 |
173.91 |
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Average Fund Price |
$10.4 |
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Average cost to acquire the units |
$10.3 | |
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2. |
Build your investment portfolio with a relatively small amount of capital
You may diversify your investment into several funds with a relatively small amount of capital and build an investment portfolio that fits your investment appetite and objectives. With a balanced and diversified portfolio, you can enjoy a more sustained potential return in the long-run. |
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3. |
Start at an early stage and watch your wealth grow
With the compound growth effect, you will be surprised by the power of wealth accumulation if you start investing at an early age. The table below demonstrates why you should start planning to make regular investments as early as possible:
| No. of Years |
Total Contribution Amount (HKD) |
Total Return in HKD (Include contribution) |
Net Return in HKD (exclude contribution) |
Return Rate |
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3 |
$72,000 |
$83,564 |
$11,564 |
16.06% |
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10 |
$240,000 |
$409,690 |
$169,690 |
70.70% |
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15 |
$360,000 |
$828,941 |
$468,941 |
130.26% |
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30 |
$720,000 |
$4,520,976 |
$3,800,976 |
527.91% |
BEA Monthly Investment Plan with Flexible Options and Charges
BEA offers flexible investment choices: lump sum and monthly savings plans. The investment amount can be as low as USD1,000* for lump sum investments. You may also choose to start investing at a more moderate pace with monthly instalments of only HKD1,000* per fund.
In addition, BEA also gives you the choice of front-end loaded funds or back-end loaded funds to suit your investment needs#.
* Applies to specific funds only and may be changed without prior notice.
# Depending upon availability. | |
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