PhillipCapital Unit Trust | Regular Savings Plan, RSP

UT Regular Savings Plan (UTRSP)

Think BIG. Start Small.

Did you know…?

Investing in Unit Trusts and through a Regular Savings Plan (RSP) does not have a lock-in period, as compared to other regular investment facilities that may have a lock-in period of 10, 20 years.

Whether you want to purchase that dream car or house, pay for your children’s education or go on that holiday that you have been looking forward to, you have the freedom of redeeming your holdings.

If you are new to Unit Trust, you might want to understand more here:

What is a Unit Trust?

A unit trust is an investment vehicle comprising a pool of funds from many investors and managed by a fund manager. The fund manager invests the pooled money into assets such as stocks, bonds, money market instruments, a combination of these investments, or even other funds. Purchasing a unit trust gives you exposure to all the investments in that fund. The collective holdings of the assets held in trust will form the total portfolio of a unit trust fund.

More about Unit Trusts

Understanding Regular Savings Plan (RSP)

Plan your investment on solid ground

Whether you are planning for retirement, saving for your children, or achieving financial goals, you need a sound investment plan and the right product to see you through. In this scheme, the high potential returns, reasonable risk and cost effectiveness of Unit Trusts is combined with a risk management tool. It is known as the Regular Savings Plan or RSP for short.

RSP builds your Unit Trust portfolio over time by using an investment strategy called Dollar Cost Averaging, which mitigates market risks and fluctuations.

This is done by purchasing more units when the price is lower and fewer units when the price is higher. Investing a fixed amount every month over a period of time manages market risks and fluctuations and allows you to benefit over time.

Take a look at this illustration. Assuming you have $2,000 to invest, and you invest $200 every month into an RSP.

Month

Investment

Price per unit

Units Purchased

1

$200

$10.00

20.00

2

$200

$8.00

25.00

3

$200

$6.00

33.33

4

$200

$4.00

50.00

5

$200

$2.00

100.00

6

$200

$2.00

100.00

7

$200

$4.00

50.00

8

$200

$6.00

33.33

9

$200

$8.00

25.00

10

$200

$10.00

20.00

Total

$2,000

$60.00

456.66

*For illustration purposes only.

 

Assuming you had purchased $2,000 worth of units in Month 1, you would have only had a total of 200 units. Instead, with Dollar Cost Averaging through RSP, the average unit price and cost of investment are lower as illustrated in this simple calculation:

  Without DCA   With DCA
Average Unit Price
Total price ÷ no. of transactions $10.00 ÷ 1 = $10 $60.00 ÷ 10 = $6.00
Average Cost of Investment
Total cost ÷ no. of units purchased $2,000 ÷ 200 = $10 $2,000 ÷ 456.66 = $4.38

It is difficult to time the market where the prices fluctuate all the time. Adopting dollar cost averaging is an investment strategy to ensure an overall favourable average price per share.

RSP – Most Subscribed Funds

Note: The list of most subscribed funds is calculated on the transactional basis. This list is intended for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the product mentioned. It does not have any regard to your specific investment objectives, financial situation or particular needs.

At Phillip, we provide a range of RSP-approved funds for your selection. You may use the filters below to find a fund suitable for your investment needs:

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