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Why is POSB IS an RSP and DCA?

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Old 08-10-2019, 05:28 PM   #1
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Join Date: Oct 2019
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Why is POSB IS an RSP and DCA?

Hello, I am looking to start investing either via the POSB Invest Saver (Nikko AM STI ETF) or the SCB (SPDR STI ETF) and have some questions to ask. I apologize if this has already been answered somewhere.

Why do we associate the POSB Invest Saver with dollar cost averaging and a regular savings plan? Is it simply because it automatically invests a preset amount every month? Or is there something about how POSB invests that makes it DCA ?

1) If I use SCB and have the discipline to invest a fixed amount on the 1st of every month, then would that be equivalent to dollar cost averaging and a regular savings plan?

2) Apart from automation and fees, are there any other differences between the POSB IS and the SCB?
Rui Qi is offline   Reply With Quote
Old 09-10-2019, 12:40 AM   #2
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Join Date: Dec 2009
Posts: 8,434
Why do we associate the POSB Invest Saver with dollar cost averaging and a regular savings plan? Is it simply because it automatically invests a preset amount every month? Or is there something about how POSB invests that makes it DCA ?

1) If I use SCB and have the discipline to invest a fixed amount on the 1st of every month, then would that be equivalent to dollar cost averaging and a regular savings plan?

2) Apart from automation and fees, are there any other differences between the POSB IS and the SCB?
"Dollar-cost averaging" is just a fancy way of saying "invest a regular amount at regular intervals". It's nothing special. You can do it yourself (like you proposed in your Q1), but it's easier when you have someone do it for you.
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