Unit Trusts Monthly Investment Plan (MIP)

The Unit Trusts Monthly Investment Plan (MIP) is designed for investors to put aside a fixed amount of money regularly every month into a unit trust. Regular monthly contributions (i.e., fixed amount at regular interval) give you the benefit of dollar cost averaging and let you enjoy the long-term growth potential of funds over time.

To start your Unit Trusts Monthly Investment Plan (MIP), all you need to do is to invest the initial amount, which starts as low as BND1,000, depending on the fund. Subsequent MIP contributions through direct account debit can start from a minimum of BND100.

Investment services
HSBC's investment services are all about choice and flexibility. You can choose from a wide range of investment products and services to suit your financial needs and goal, at a risk level you are comfortable with. You can choose from a diversified range of unit trusts from HSBC or other prudently chosen fund houses. These funds are tailored to meet your high, medium, or low risk preferences.

Objective of the monthly investment plan
The unit trust monthly investment plan (MIP) is best suited to investors seeking to build an investment portfolio through regular monthly contributions. this investment plan is structured to be both flexible and convenient, for those with different needs and financial status.

Investment details
Key benefits
By taking advantage of the unit trust monthly investment plan, you'll have access to a professionally managed investment portfolio. Key benefits include:

- regular savings approach
- dollar cost averaging
- wide range of funds
- managed by professional managers worldwide
- flexibility
- simplicity
- affordability

How does the unit trust monthly investment plan works?
The unit trust monthly investment plan lets you decide the right time to invest your savings. By sticking to a regular savings and investment programme, you invest the same amount each month, no matter what the unit price is. As all markets go up as well as down, you will acquire units at different prices. This investment method called dollar cost averaging.

The following table shows how a unit trust monthly investment plan works:

In the above example, you invest SGD1,000* each month and purchase 10,193 units over six months at an average unit cost of SGD0.97*. Dollar cost averaging therefore enables you to buy unit close to their average price over the investment period

*Your investment will be dominated in SGD

Monthly contributions
Payment is easy. Monthly contributions can be settled automatically through your bank account. Units will be issued within five business days after your contributions are received.

Flexible investment plan
You may instruct to increase/decrease the contribution, redirect fund allocations, redeem your units of charge the debit date any time, free of charge.

Quarterly statements
Each quarter you will receive a complete investment portfolio statement and/or transaction statement.