1.

A regular saving plan also allows you to enjoy the benefits of Dollar Cost Averaging as you build up your investment position. This is a preferred investment approach for a fixed sum of a particular investment on a regular schedule. When prices go up, fewer units will be bought; and when prices go down, more units will be purchased.

2.

The average cost of each unit acquired will be lower than the fund’s average price over the same period. In this way, you can potentially build up a desired investment position by making gradual investments in the market. You avoid the risk of investing a large sum at an unexpectedly disadvantageous time, while giving yourself a disciplined plan to reaching your investment goals.