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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.
 

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