AUTO INVESTMENT PLAN (AIP)

As in my previous post, I mentioned about investing conservatively and also putting 10% each into different industry or stocks including ETFs and AIP.  Today I will be talking bout the benefits of AIP (AUTO INVESTMENT PLANS).

What is AIP (Automatic Investment Plan) then? It is auto pilot dollar cost averaging strategy when investors can buy more shares at lower prices and buys less shares at higher prices.  For AIP, an investor can set aside $500 (whichever amount the investor budgetted) every month to invest regardless of the share price. As market volatility is unpredictable, AIP is a good way for retirement fund. Companies such as Endowus or any broking firms have introduced AIP knowing that many wants to save more for retirement and to grow their wealth as inflation kicks in. AIP is considered a safe way to invest than those who goes ALL IN to bet on a single stock. As market is unpredictable depending on economy and other factors such as Covid-19 and monkeypox or any new virus that can affect the economy, AIP is still the best way to grow your money whether the stock prices rises or falls.

I have personally invested in AIP with broking firms and banks too on regular intervsls within my budget for my retirement fund. I get dividends paid every month. BTW, you can choose monthly, quarterly, half yearly or yearly payout fund. I would encourage those who have not started to do so quickly and to start one for your children. As property prices increased and food prices are forever increasing (due to food shortage to feed the world population), AIP is the way to go. For investors who buys stocks, you either gain profits or make losses. With AIP, you can assured that your money is put into well use and you can choose which type of investments based on your risk assessments and personality. In this way, you decide on which ones you want to invest. I have invested in Nikkon AM Fund and some others. You can decide on which fund you are keen based on country, industry sector, USD or SGD, etc.  If you are not sure which AIP to go with, talk to an expert planning. Find out as much as you can before doing so. At least you know you make the right decision. Start now!

Happy Investing :)