What is Monthly Invest?Monthly Invest, also known as stock dollar-cost averaging, refers to an investment strategy of purchasing specific stocks at a fixed time with a determined amount of money.Monthly Invest involves purchasing stocks in a monthly installment manner. Instead of buying in whole lots like typical stock trading, stocks are purchased according to the varying monthly supply amounts set by individuals.
Example:Let's take Xiao Ming as an example. He wants to gradually invest in Tencent stocks regularly. However, Tencent stocks are traded in lots of 100 shares, with a market price of 350 Hong Kong dollars per share, requiring 35,000 Hong Kong dollars for one lot, which is too high of an investment threshold for him.Through the Monthly Invest feature, Xiao Ming invests 10,000 Hong Kong dollars per month, which uSMART purchases at the market price and deposits into Xiao Ming's account. This way, Xiao Ming effectively buys approximately 28 shares of Tencent each week, achieving a low-threshold stock dollar-cost averaging.
Advantages of Monthly Invest:
1.Lower cost entry into quality stocks
The entry threshold for Monthly Invest is low; you don't need to buy at least one lot, and you can hold major stocks with as little as 100 Hong Kong dollars per month.
2.Dollar-cost averaging to diversify risk
The "dollar-cost averaging" adopted by Monthly Invest can mitigate the impact of short-term market fluctuations on investments. By investing a fixed amount monthly, more stocks can be purchased when prices decline, and fewer stocks when prices rise. This reduces the chances of investing all funds at a high or low point.
3.Flexible and adjustable
Investors can set the supply amount according to their personal situations and adjust the supply period as needed, such as monthly, weekly, or daily supply. Through uSMART's purchase of Monthly Invest, you can adjust the supply amount, pause, or restart the monthly supply plan at any time, making it convenient to adjust investment portfolios.
4.No need to constantly monitor the market
Since Monthly Invest involves regular fixed-amount purchases, once investors choose their preferred stocks, they don't need to constantly monitor market conditions, saving a significant amount of time and effort on when and when not to enter the market.
How does uSMART's Monthly Invest work?
|
Supply date |
You can choose to supply on designated days each month (if the day is not a business day, it will be on the next business day). |
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Supply method |
Deducted from your uSMART account. |
|
Automatic currency conversion |
Supports setting automatic currency conversion. After setting, if the deducted currency (e.g., Hong Kong dollars) is insufficient, the shortfall will be automatically exchanged from your other currency (e.g., US dollars) available to avoid payment failure. The exchange rate follows the latest rate on the App when converting currencies. |
|
Transaction execution date |
The nearest trading day after supply. |
|
Buying stocks |
After deducting transaction fees, the monthly supply amount will be invested in your selected stocks. The purchased stocks will be rounded down to the nearest whole number of shares, and the remaining supply amount will be returned to your uSMART account. |
|
Modifying or terminating the plan |
Notification to uSMART's securities account must be made before the next supply date. |
How to place a trade on uSMART mobile applicationLog in to the uSMART HK APP, click on "Trading" from the bottom right of the page, click on "Monthly Invest" in the second column of the page, click on "Trade" in the bottom right corner, select "View All Monthly Invest," choose your desired Monthly Invest, select the monthly supply amount, deduction method, deduction date, etc., and you can create a monthly supply plan. After confirmation, the monthly supply plan will take effect immediately.
This diagram is provided for illustrative purposes exclusively
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uSmart Securities Limited (“uSmart”) is based on its internal research and public third party information in preparation of this article. Although uSmart uses its best endeavours to ensure the content of this article is accurate, uSmart does not guarantee the accuracy, timeliness or completeness of the information of this article and is not responsible for any views/opinions/comments in this article. Opinions, forecasts and estimations reflect uSmart’s assessment as of the date of this article and are subject to change. uSmart has no obligation to notify you or anyone of any such changes. You must make independent analysis and judgment on any matters involved in this article. uSmart and any directors, officers, employees or agents of uSmart will not be liable for any loss or damage suffered by any person in reliance on any representation or omission in the content of this article. The content of this article is for reference only. It does not constitute an offer, solicitation, recommendation, opinion or guarantee of any securities, financial products or instruments.Regulatory authorities may impose restrictions that only allow qualified investors to buy and sell virtual currency-related ETFs. These restrictions are implemented to protect investors, mitigate risks, and ensure the stability of the market. The specific requirements may vary based on the region and regulatory body.
Investment involves risks and the value and income from securities may rise or fall. Past performance is not indicative of future performance.
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