Why is a savings plan one of the best investment products on the market?
A savings plan, or a scheme for systematic investment in mutual fund shares, is an extremely powerful, multi-layered and effective investment product. In a few words, we will try to convince you of its clear advantages:/p>
1ST
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You do not need in-depth knowledge of financial markets. In fact, you don’t need any knowledge of financial markets. Your investments are managed by proven professionals, and at a very affordable price. |
2ND
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You save in small amounts without noticing. You don’t have to waste your time visiting an office. Simply request your savings plan and set up a regular automatic transfer from your account of the monthly installment due under the plan. |
3RD
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You can skip an installment without causing your savings plan to terminate. |
4TH
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You stop worrying about whether NOW is the best time to invest. A simple example. Imagine that you are the best market analyst and you can predict the equity market bottom for any given year by investing $1,000 in the S&P 500 index at its lowest level for that year over a 10-year period (2010 to 2019). At the end of 2019, thanks to your “skill in buying at the bottom of the market,” the market value of your investment would be $20,565 representing an average annual return over the period of 13.50%. Now imagine that during the same period you invest monthly on the first of the month an amount of $83.33 (12 * 83.33 = $1,000 per year) in the S&P 500 index at the current market price. Without your super-analytical skills and knowledge of the financial markets, the market value of your investment as of 31.12.2019 would be $19,489 (or an average annual return over the period of 13.41%). Impressive, right? |
5TH
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You don’t pay taxes on the profit from your investment. |
6TH
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Your savings are at your disposal at any time. You can withdraw them, along with the returns you’ve earned, whenever you like, without paying additional fees or commissions. |