For most of us, it's considerably easier to come up with smaller investment amounts on a regular basis than it is to make a large, lump-sum contribution. A regular investment plan allows you to choose when and how often you make contributions - ensuring that investing remains a priority throughout the year, and not just during RRSP season. With a CIBC Regular Investment Plan, money will be automatically withdrawn from your bank account and invested in a range of CIBC investment solutions - starting from as little as $25 a month.
How can I lower the average cost of investing?
Investing smaller amounts in mutual funds over time - or "dollar-cost averaging" - can mean lower average costs than if you make infrequent purchases. For example, your money will buy more units of a mutual fund when prices are low; and fewer units when prices are high. Provided the fund gains in value over the long term, you'll profit from your purchases during short-term price declines.