INVESTING STRATEGY
AutoInvest options and the difererences?
Hi there, am curious about the differences between the three options for Autoinvest? How come 98% choose the lowest share and the rest choose the other options? What should be my ideal investment profile if am to choose either of the three. As an example I invest every fortnightly amounts less than 1k, what would be appropriate for me
ss
30 September 2022
3 Comments
about 2 years ago
Hi SS.
Most people choose the ‘lowest share’ option because this is the easiest way to keep a portfolio in balance, by topping up the one that is the furthest away from its target size each time.
In practice, say you have 3 funds. 2 of the funds have flat performance for the month. 1 fund goes down for whatever reason. With the ‘lowest share’ strategy, your autoinvest will go towards topping up the one that has gone down. In this way, it brings it closer to its target, plus also takes advantage of buying whichever fund has underperformed/is cheaper that month. So you can see it has multiple purposes, that’s why it’s such a popular autoinvest strategy, and it’s a sensible approach whether investing larger or smaller amounts.
Hope that helps :)
Dave
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ReplyHui Qi Soon
PEARLER
about 2 years ago
Hi SS, I am Sabrina one of the engineer in charge of building the automation. Here’s an article (https://pearler.com/help/4771944) that explains the differences between each investment options. Hope it adds more clarity to it :)
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