Account Info
Log Out
No matches yet
Operations too frequent. Please try again later.
Please check network settings and try again Refresh Refresh
History record delete
    Quotes All >
      News All >
        Log in to access Online Inquiry

        The Strategy to Navigate Volatile Markets

        Views 28952022.09.22

        What is a regular savings plan?

        Key takeaways

        • A regular savings plan (RSP) is to invest a fixed amount of money in a fund at regular intervals.

        • RSP has four features: costs split and fluctuations irons out, disciplined investment to avoid pursuing rises and killing falls, long-term investment with compound interest, automatic implementation, and time-saving.

        Understanding a Regular Savings Plan

        A regular savings plan (i.e., RSP, Automatic Investment Plan, AIP) is to invest a fixed amount of money in a fund at regular intervals. For example, you buy a specific fund of $200 on the 5th of each month. Its features are as below:

        1. Split costs and irons out fluctuations

        Unlike one-time investments, a RSP is a process of multiple investments with average costs. Due to that the amount of monthly investment is fixed, you will buy fewer units when the price of a fund is high and more units when the price is low, which achieves the desired effect of averaging costs.

        2. Disciplined investment to avoid pursuing rises and killing falls

        People's investment decisions are susceptible to emotions, so they might pursue rises and kill falls and buy high and sell low. But RSP is a disciplined investment implemented punctually to avoid changing long-term investment strategy due to temporary market fluctuations.

        3. A long-term investment with compound interest

        Every time you make a profit by a RSP, the profit will get into a new round of RSP and repeat this cycle. A long-term investment will achieve the power of compounding to accumulate a sizable wealth.

        4. Automatic implementation and time-saving

        There are many fund-selling apps nowadays (such as moomoo) supporting a customized RSP. The system will enforce automatic deductions punctually as long as you correlate them with your bank account. It is simple and convenient and you do not need to do it manually.

        While the RSP has many advantages, it would be better not to enter the market when the price of a fund is high. Otherwise, it might take a long time to earn its cost.

        Trade like a pro with moomoo

        Get free stock and start your professional trading today

        Terms and conditions apply right-arrow

        This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.

        Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.

        In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).

        In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

        In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites and Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.