A regular investment plan, allows you to elect a certain $ amount each week, fortnight or month to invest.

Most large fund managers and master trusts/ wrap providers have facilities to enable you to set up a regular investment plan. Where the minimum investment amount for a lump sum deposit may be anywhere from $1,000 to $25,000. With a regular investment plan the minimum investment amount will be significantly less. For example the Colonial first state Property Securities fund initial investment amount is $5,000, whereas the minimum amount under a regular investment plan is $100 per month.

Many people use this method of investing rather than waiting until they have a larger sum saved in their bank account for two reasons

• It’s a great way to be disciplined about your regular investments, and you won’t miss the money or be tempted to spend it on other things as the funds are automatically debited from you bank account on the date you select.
• You are less concerned about picking the right time to invest, as by investing a smaller amount regularly you effectively smooth out highs and lows in the market price of your investments. That is you buy less when prices are high and more when prices are low. This principle is sometimes referred to as the principle of ‘dollar cost averaging’.
  The principle of dollar cost averaging states that over time the average cost per unit of the fund will become smaller and smaller. Dollar-cost averaging lessens the risk of investing a large amount in a single investment at the wrong time.

YourShare members wishing to set up a new regular investment plan / dollar cost averaging plan is simple
 

1. Decide how often you want to invest and how much to invest each time.
2. Select the fund(s) or master trust / wraps account you wish to invest in
3. Down load the PDS, select the regular investment option and complete your bank details.
4. Send the completed PDS to the Fund Manager or master trust / wraps provider (ensuring the YourShare broker details are included in broker details section) or forward the PDS to YourShare for checking and forwarding onto the Manager on your behalf.

If you already have a regular savings plan set up and wish to participate in the YourShare 100% rebate of all entry fees on further contributions, and the YourShare Yearly Cash Rebate of trailing fees generated as a result of your total investments, you need only complete the one page Fund Broker Nomination form. 

A regular investment plan is a great way to be disciplined in your saving and investing.

Please ensure you read fully the Product Disclosure Statement (PDS) of any pension, superannuation or investment product you are considering of investing in.

YourShare recommend anyone who has questions or is confused about superannuation, savings or investment to seek professional advice and contact a reputable fee for service advisor. If you would like to speak with an associated Fee-for-Service Advisors please click this link. Using a financial advisor is about paying a professional advisor to help you with your superannuation, investment and savings goals. Its not about seeing an advisor once, paying an upfront fee then also paying them for the next 10 years. Its your money make it work for you, not someone else.

For more information on managed funds please also refer to Fido, the consumer website of the Australian Securities and Investment Commissions (ASIC), under Superannuation.

Disclaimer
The information in this document reflects YourShare Financial Services Pty Ltd ('YourShare') understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.