Regular Subscription Plan
The Regular Subscription Plan (RSP) is a tool that allows you to contribute to your investment account regularly and automatically.
It is an investment program that allows you to purchase units for an investment fund account on a periodic basis, either monthly or quarterly. Aside from the usual advantages derived from investing in the investment funds, RSP offers the following additional benefits:
a. Higher returns thru cost-averaging. By enrolling an investment fund into the RSP, a regular contribution amount is debited from your BPI/BPI Family Savings settlement account on a periodic basis, for the purchase of units based on the prevailing price. This build up strategy allows you to average your acquisition cost. When prices are low, more units/shares are purchased, while when prices are high, fewer units/shares are bought.
b. No market-timing needed. Because additional investments are automatically programmed regardless of the movements in the market, there is no longer a need to analyze market information before deciding when to invest. Gathering the relevant information necessary to time the market is done by the fund manager for you. Studies have proven that while the age-old advice to buy low and sell high is simple and obvious, a client’s unsystematic behavior leads many to do the opposite. It is advised that the best course of action is to invest regularly and to stay invested.
c. Convenience. You don’t have to leave the comfort of your home or your office to invest since contributions are programmed and electronically processed depending on the schedule that you have chosen.
d. Control. You retain control over your investments since you determine the dates and amount of your contribution. Moreover, you may stop and re-start the RSP anytime.