>> Ringgit Cost Averaging (RCA)

RCA is a disciplined investment technique to help investors weather through periods of market volatility. Under RCA, an investor will invest a fixed amount of money in an investment at regular intervals. Basic sample, an investor might choose to put aside RM1,000 for unit trust investments every month.

This technique ensures that investor pays mix of higher and lower prices for the day's price might be high or low. During times of recession, this technique could turn out to be wise because an investor gets to buy more units when the market down.

For example, please refer Table 1 below. An investor who invests RM1,000 at regular intervals over 5 months ended up purchasing more units and at lower average cost per unit of RM0.4944 compared to cost per unit of RM0.60 with lump sum purchase at the start of the investment period. This is the better result of the Ringgit Cost Averaging effect.

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