Comments on: Ringgit or Dollar Cost Averaging

By: Father Sez » Archive » There are a silver lining to this financial mess going on around us….for me anyway

Mon, 10 Nov 2008 00:40:30 +0000

[...] way to accumulate wealth.Â And included in the list of lessons is the method that I used, i.e. dollar cost averaging andÂ the recommended ways to choose good stocks and unit [...]

By: “Horrors! Dow Jones dropped 300 points!” or should it be “Hooray, Dow Jones dropped 300 points” – An opportunity to stress test my investment philosophy « Father sez……

Wed, 12 Dec 2007 11:27:58 +0000

[...] unit trusts (or mutual funds as some may call them) are left alone, and regularly invested on a “dollar cost averaging basis”. This post is only about my investment in individual [...]

By: Definition & Explanation of Value-cost Averaging Investment strategy

Definition & Explanation of Value-cost Averaging Investment strategy — Sun, 14 Oct 2007 22:07:27 +0000

[...] If you had invested in unit trust or mutual funds, I am sure that you had heard of Dollar-Cost Averaging (DCA). Another strategy not commonly used in unit trust investment is Value-Cost Averaging (VCA). For [...]

By: kclau

kclau — Mon, 13 Aug 2007 04:28:47 +0000

Hi Relax,

if you invest lump sum, it is riskier than RCA because if the market doesn’t perform as you expected, your return of the year might be lower than RCA.

Of course, there is no right or wrong. But try not to time the market. Even Warren Buffett never does that.

The easiest way for passive investor is:
1. Invest according to your asset allocation all the time
2. If you have 12K, no need to wait to do RCA, just invest fully according to your asset allocation – e.g. 10% cash, 30% bond, 30% local equity, 30% foreign equity etc.
3. Keep investing whenever you have money, and according to the asset allocation.
4. Rebalance your portfolio from time to time, maybe once a year.

Then you will be doing lump sum investment plus the benefit of RCA because you do it regularly.

By: Relax

Relax — Sun, 12 Aug 2007 20:43:55 +0000

one question.

if I have 12k RM

If I use RCA, I put 1k per month and I might benefit from the pricing.

If I put 12k a lump sum as initial capital, I will get the benefit of full year return for my 12k.

Both seems to be beneficial strategy, but which one is the better choice?

By: What is the First Insurance Policy We should buy for our Child? | Case Study | KCLau's Money Tips

Mon, 30 Jul 2007 09:52:39 +0000

[...] investment fund to lock the capital gain5. pay monthly or quarterly, instead of yearly to apply the Ringgit Cost Averaging [...]

By: How to Avoid Investment-linked Policy Lapse

How to Avoid Investment-linked Policy Lapse — Wed, 30 May 2007 00:55:58 +0000

[...] Ringgit cost averaging strategyâ€“ pay monthly or quarterly premium to take advantage of the ringgit cost averaging strategy. As usual, insurance companies charge additional 5% of insurance charges for monthly mode of payment. But it is still worthy to do so when you take into account the time value of money. [...]

By: How to monitor unit trust portfolio using Signal Invest | KCLau’s Money Tips

Mon, 14 May 2007 04:13:56 +0000

[...] Ringgit or Dollar Cost Averaging [...]

By: Everything about Unit Trust in Malaysia | KCLau’s Money Tips

Everything about Unit Trust in Malaysia | KCLau’s Money Tips — Fri, 11 May 2007 06:36:58 +0000

[...] Ringgit or Dollar Cost Averaging [...]

By: 10 easy tips to generate passive income | KCLau’s Money Tips

10 easy tips to generate passive income | KCLau’s Money Tips — Thu, 26 Apr 2007 09:42:05 +0000

[...] renews his policy. A unit trust agent will get residual income for his clients who practice Ringgit or Dollar Cost Averaging. If you are serious to know more, contact me for more details. Some basic requirements [...]