Previously, I have written about my choice for choosing POSB invest saver plan here
What is RSS?
- RSS plan offers investors an affordable and convenient way of investment by committing a fixed amount of money on a monthly basis for a preferred share, allowing us to enjoy the benefits of dollar cost averaging
What is dollar-cost averaging?
- When the share price is higher, we would buy fewer shares with the fixed dollar amount
- When the share price is lower.we would buy more shares with the same amount
- This means we automatically buy less at market highs and buy more at market lows
- Over time, the price we paid for our portfolio of shares would be averaged out
Benefits of RSS
- RSS allows us to buy into selected shares by investing an affordable and regular amount per month, from as little as $100
2. Dollar cost averaging
- RSS removes the need to time the market and trying to figure out when is the lowest point to buy
- RSS generally has a lower cost of transaction with no lock-in period
Who provides RSS?
RSS is offered by DBS group, Maybank Kim Eng, OCBC Bank, and phillip securities
This useful chart from seedly show the different regular saving plans in Singapore
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