What is Dollar-Cost Averaging Stocks?

"Dollar-Cost Averaging Stocks" is a flexible and convenient investment tool that allows you to invest in selected stocks with as little as HKD 500 each month. This approach uses the "average cost method" to mitigate the impact of short-term market fluctuations, helping you balance overall investment effectiveness.

Advantages of Dollar-Cost Averaging Stocks

1. Lower Cost to Buy Quality Stocks

The entry threshold for dollar-cost averaging stocks is low, allowing you to hold high-value stocks with monthly contributions starting from HKD 100 without needing to buy a full lot.

2. Risk Diversification through Average Cost Method

This method softens the impact of short-term market volatility. By investing a fixed amount monthly, you can purchase more shares when prices drop and fewer shares when prices rise, reducing the risk of investing a lump sum at high or low prices.

3. Flexibility

Investors can set their contribution amounts based on personal circumstances and choose the contribution frequency—monthly, weekly, or daily. With uSMART, you can adjust your contribution amount and easily pause or restart your investment plan to adapt your portfolio.

4. No Need to Constantly Monitor the Market

Since dollar-cost averaging involves regular fixed-amount purchases, once you choose your desired stock, you won’t need to keep an eye on market conditions, saving you considerable time and effort.

Features of Dollar-Cost Averaging Stocks on uSMART

1. Coverage of Hong Kong and U.S. Stocks

uSMART is one of the few brokers offering monthly investment plans for both Hong Kong and U.S. stocks, allowing you to expand your long-term investment strategy into the world's largest markets with a wide selection of quality blue-chip stocks and selected ETFs.

2. Low Entry Threshold

Monthly contributions for Hong Kong stocks start at HKD 500, and for U.S. stocks at USD 100, allowing you to begin your dollar-cost averaging plan with just one stock.

3. Convenient Investment Experience

The uSMART platform features a user-friendly interface, enabling investors to easily set up their monthly investment plans and automate the investment process. The platform supports various payment methods, allowing for flexible adjustments based on your financial situation and investment goals.

4. Support for Fractional Shares

uSMART allows investors to make fractional share investments, meaning even if you don’t have enough funds to buy a whole share, you can still invest according to your set monthly contribution amount, further lowering the investment barrier.

Ultra-Low Costs for Dollar-Cost Averaging Stocks on uSMART

Currently, investing in dollar-cost averaging stocks on uSMART comes with ultra-low costs:

1. Commission-Free Trading

uSMART offers commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for regular investors, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.

2. No Platform Fees

In addition to commission-free trades, uSMART does not charge platform usage fees. This allows investors to benefit from a lower cost structure in long-term investments, further enhancing investment returns, especially when making frequent small investments.

3. No Custody Fees

uSMART also provides the advantage of no custody fees, meaning you won’t have to worry about management fees for your account funds. This fee exemption offers greater flexibility for investors to manage liquidity and investment strategies.

How to Purchase Dollar-Cost Averaging Stocks on uSMART - Application Steps

Step 1: Log into the uSMART HK app and click on "Trading" at the bottom right of the screen.

Step 2: Click on "Dollar-Cost Averaging Stocks" in the second column and select "All Dollar-Cost Averaging Stocks."

Step 3: Choose your desired dollar-cost averaging stock, select the contribution amount, deduction method, and deduction date, then create your investment plan.

Once confirmed, the investment plan will take effect in real-time.

(Source: uSMART HK)