What are the benefits of setting up an Automatic Savings Program?

 

Setting up an Automatic Savings Program (ASP) is a great way to save. The value of your investment increases as time passes, and not just because you're adding to it regularly, but because what you've already invested is compounding. Setting aside a specific amount of money to buy mutual fund units at regular intervals also means that by maintaining a constant-dollar purchase program, you automatically buy more units when the price per unit is low and fewer units when the price is high. In most cases, this serves to lower the average per unit cost of your investment (Dollar Cost Averaging).