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Article: Rand cost averaging smooths out market bumps.(Business Report)
- Article from:
- The Star (South Africa)
- Article date:
- March 19, 2007
CopyrightCOPYRIGHT 2007 Independent News & Media PLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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BYLINE: DI TURPIN
Rand cost averaging is a wealth building strategy that involves investing a fixed amount at regular intervals over a long period.
When it comes to implementing investment strategies based on rand cost averaging, there may be no better investment vehicle than a collective investment such as a unit trust or an exchange-traded fund – the structure of these funds almost seems to have been designed with rand cost averaging in mind.
It involves investing a fixed amount at predetermined intervals. The easiest way of doing this is to set up a bank debit order timed to coincide with your salary. This means that you put saving at the front of the ...