Introducing Share Builders Plan

Introducing Share Builders Plan

Share Builders Plan (“SBP”) is a regular fixed dollar amount investment plan, which enables you to buy shares on a consistent and incremental basis so as to build up a portfolio of securities for yourself eventually. Therefore, you do not need a huge amount of funds to invest in stock market since Share Builders Plan presents an opportunity for you to invest in stock market to buy odd lots at a reduced cost. 

By investing a fixed amount of funds consistently every month over a period of time, your average cost of shares purchased will generally be lower than the average price of the shares over the same period of time. This is possible since with the same amount of funds, you will buy more shares when prices are low and fewer shares when prices are high.

This investment method is known as dollar-cost-averaging, and it is especially useful in hedging against market volatility. With such a disciplined and consistent method, you will eventually build up a portfolio of stocks at a lower averaged cost.

Share Builders Plan can also be used as a form of Regular Savings Plan for retirement planning, saving for your children’s education or aiming to achieve other financial objectives, Regular Savings Plan (“RSP”) could potentially help you reach your goals with peace of mind. RSP is an investment plan that offers a consistent and disciplined means of investment that provides access to stocks and unit trusts with low cost on a monthly basis. It takes advantage of the dollar-cost averaging approach that does not require you to time the volatile market.

The above is extracted from www.poems.com.sg sharebuilders plan website. Please read disclaimers as well.
http://lionelltp.blogspot.sg/p/disclaimer.html

I have also just started this Share Builders Plan for my 2 year old son this year to fund his education. The market is currently volatile and Singapore might undergo a technical recession. Hence I am using the dollar cost average technique to ride out the volatility.

If you are interested in Share Builders Plan and have further queries, please contact me at 90400848 or email to me at tplim1975@gmail.com.