A Regular Savings Plan (RSP) provides investors the possibility to invest small amounts on a regular basis over time, instead of having to inject a large lump sum from the start.
By investing the same amount every month, you get to buy more units when prices are low and less units when prices are high. Making use of this ‘dollar-cost averaging’ principle, you are, to a certain extent, able to ride out the volatility of the market over time.
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