Interested in doing Value Averaging but do not know how to go about it? (If you do not know what is Value Averaging, find out more about it and how different it is from Dollar Cost Averaging here.)
dollarDEX has a Value Averaging Plan (VAP) for investors. This saves investors the trouble to have to calculate the amount of investment every month and I bet you would not want to do the math, but still want to enjoy the benefits of Value Averaging. The main advantage of VAP is that it allows you to achieve your desired annualized returns; for e.g., you may want a 10% annual return and VAP can help you achieve it. VAP involves a monthly contribution of investment dollars to buy into funds. As the system leverages on market lows to make bigger investment, it means that the investment premiums will be irregular – higher investment premium when price is low and lower investment premium when price is high. Just think of big buys at seasonal sales.
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- Targeted annual returns (in %)
- Maximum investment amount per month
- Minimum investment amount per month