OCBC, Amundi float dollar cost averaging fund in Singapore
It leverages the cost-averaging effect when it allocates assets to equity ETFs.
OCBC and asset manager Amundi have launched the Amundi-OCBC Momentum Fund, the first fund in Singapore claimed to harness a dollar cost averaging feature.
The Momentum Fund allows the portfolio manager to initiate dollar cost averaging for the investor. The fund leverages the cost-averaging effect when it allocates assets from an initial pool of fixed income securities to equity ETFs.
Investors are also paid a regular dividend and can enjoy further capital appreciation even as markets move higher.
The Momentum Fund allows up to a maximum of 25% into non-investment grade bonds, with investors potentially earning quarterly dividend of up to 3% per annum.