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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:
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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:
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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. |
Important Notice:
Investment involves risks. The price of units may go down as well as up as the investments of a fund are subject to the market fluctuations and the risks inherent in investments. Past performance is not indicative of future performance. Investors should not make an investment decision based solely on this marketing material.
Investment in emerging markets involves above-average investment risks, for instance, possible fluctuations in foreign exchange rates, political and economic uncertainties. It is possible that investors may lose some or the entire amount they have invested in the funds.
Before making any investment, investors should refer to all relevant investment funds' offering documents, including the Explanatory Memorandum, for detailed information including the risk factors.
The investment decision is yours but you should not invest in the investment funds unless the intermediary who sells it to you has explained to you that the investment funds are suitable for you having regard to your financial situation, investment experience and investment objectives.
The funds may not be available in all jurisdictions and/or may be subject to restrictions. If investors are in doubt, independent professional advice should be sought. This webpage has not been reviewed by the Securities and Futures Commission in Hong Kong.
Issuer of this webpage: The Bank of East Asia, Limited |
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