Balancing Overall Investment Effectiveness by Dollar Cost Averaging

The advantage of "Monthly Stocks Savings Plan" is based on the concept of "Dollar Cost Averaging". You can acquire more shares when the stock price goes down and less shares when the stock price goes up. With this long term investment strategy, you do not have to worry about short term market fluctuations, but with more balanced overall investment effectiveness.

Example (HKD example for reference only):

Contribution Month Contribution
Amount
(HK$)
Contribution
Amount After Deducting Transaction Fee
(HK$)
Purchase Price per Share
(HK$)
Number of Shares Bought Net Contribution Amount
(HK$)
January 1,000 950 15.38 61 938.18
February 1,000 950 17.24 55 948.20
March 1,000 950 16.70 56 935.20
April 1,000 950 17.50 54 945.00
  Total
226
3,766.58

 

Average cost per share (HK$) = Net contribution amount √∑Total shares bought
  = 3,766.58√∑226
  = 16.67