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| What is Regular Savings Plan (RSP) for Investment Funds? |
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| The RSP is a service which automatically moves a fixed amount of money from your designated Checking Account/Savings Account (CASA) into an investment fund* of your choice for a specified period. Depending on how much money you are willing to invest, you can enroll to the RSP for as low as Php 5,000 or $100 per month. |
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| Why should you avail of the RSP service? |
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| 1. |
Cost – Averaging |
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With the regular investing in fixed amounts, you stand to benefit from the cost-averaging strategy. Cost-averaging is recognized as one of the most successful strategies to overcome the effects of market fluctuations which works best in volatile markets. RSP for Investment Funds will allow clients to harness this strategy to their advantage and possibly enhance their returns compared to investing in lump sum. |
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| Sample computation: |
| Month |
Contribution |
NAV per unit |
# of units |
Market value |
| 0 |
- |
173 |
- |
- |
| 1 |
10,000 |
171 |
54.48 |
10,526 |
| 2 |
10,000 |
172 |
58.14 |
10,465 |
| 3 |
10,000 |
174 |
57.47 |
10,345 |
| 4 |
10,000 |
168 |
59.52 |
10,714 |
| 5 |
10,000 |
165 |
60.61 |
10,909 |
| 6 |
10,000 |
170 |
58.82 |
10,588 |
| 7 |
10,000 |
168 |
59.52 |
10,714 |
| 8 |
10,000 |
167 |
59.88 |
10,778 |
| 9 |
10,000 |
163 |
61.35 |
11,043 |
| 10 |
10,000 |
167 |
59.88 |
10,778 |
| 11 |
10,000 |
174 |
57.47 |
10,345 |
| 12 |
10,000 |
180 |
55.56 |
10,000 |
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120,000 |
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706.70 |
127,207 |
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One-time |
RSP |
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| Average cost per unit |
173.00 |
169.80 |
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| Accumulated units |
693.64 |
706.70 |
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| Ending Market Value |
124,855 |
127,207 |
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| Gains |
4.05 % |
6.01 % |
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| The figures quoted above are meant for illustration purposes only and are not indicative of future returns. |
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| 2. |
Convenience |
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Your designated CASA will be debited automatically so you don’t need to provide periodic instructions. |
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| 3. |
Minimal fund requirement |
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You gain access to investment funds for amounts lower than the usual minimum requirement for investment funds. You can choose from a wide selection of products including money market, bond, balanced (or mixed) and equity funds. RSP is available in both peso-denominated and US dollar-denominated investment funds. |
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| Find out which RSP investment solution best suits you by calling your Relationship Manager or Personal Banker today. You may also call our 24-Hour CitiPhone at 995 9999 for more details. |
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| * Investment fund refers to a Unit Investment Trust Fund booked through your broker, Citicorp Financial Services and Insurance Brokerage Philippines, Inc. (“CFSI”). Investment fund is managed by a third party trust department of a bank which is not affiliated or connected with CFSI, Citibank N.A, Citibank Savings Inc. or any of their subsidiaries and affiliates. |
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| Investment products: (i) are not insured by the Philippine Deposit Insurance Corporation, Federal Deposit Insurance Corporation, or any other government entity; (ii) are not bank deposits or obligations of, or guaranteed, issued or insured by Citibank N.A., Citicorp Financial Services and Insurance Brokerage Philippines, Inc. (CFSI), Citibank Savings Inc. or any of their subsidiaries and affiliates and (iii) are subject to investment risks, including the possible loss of the principal amount invested. Investment products are not available to U.S. persons and may not be available to residents or nationals in certain jurisdictions”. |
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| ** Please note that as in any investments, neither the RSP nor the investment fund assures a profit and guarantees against a loss in declining markets. |
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