by: Tam Ging Wien

– Misconception or is there Something More Sinister?

Recently I came across a product sold by POSB called Invest-Saver which is a monthly savings plan designed to allow you to invest in ETFs using a dollar cost averaging strategy. They painted the benefit that this product is convenient (auto deduction without needing to open a trading account), affordable (minimum of $100 per month) and a long-term savings using the advantage of dollar cost averaging.

I could understand convenient, I could understand affordable. But, this product got me thinking about the last benefit; could you beat the market if you invested an index that actually tracks the market? What’s more, using dollar cost averaging means that I would make my investment purchase at fixed time intervals. Somehow, this seems contradictory to me! How it is possible to beat a market index by investing …