Putting your money to work – one step at a time

“Never try to time the market.” It’s one of the golden rules of sound investing, and for good reason.

No one knows exactly when the market will go up or down, or how far. Worse, most people who jump in and out of the market in an attempt to capture upswings and avoid downturns end up doing the exact opposite of what they intend. Instead of buying low and selling high, they sell out of fear when their investments drop, and buy again after prices have risen. In other words, they sell low and buy high.

Dollar-cost averaging is a simple, set-it-and-forget-it way of investing on a regular basis. It also gives you the opportunity to “buy low” when markets go down, without having to attempt to time the market or even pay any attention at all to what the market is doing.

Let’s look at a simple example of how dollar-cost averaging works:

Every week Cathy buys $250 worth of units in the IA Clarington Loomis Global Allocation Fund, regardless of what is happening in the market. When the market is sluggish and the Fund’s unit price drops, her $250 investment may buy nine or 10 units. Conversely, when the market is at or near a peak and the unit price is higher, her $250 may buy only five or six units.

Hypothetical example for illustrative purposes only.

By committing to a weekly investment schedule, Cathy is able to buy more units when prices are low – without trying to time the market or even glancing at the current price of her mutual fund.

iA Clarington dollar-cost averaging service

Our dollar-cost averaging service is simple and convenient. Here’s how it works:

  1. Choose your IA Clarington Dollar-Cost Averaging Fund (your advisor will use the associated fund code to make the purchase on your behalf):

    FundPortfolio ManagerSeries A
    Front end (CCM)    		Series F
    Fee based (CCM)
    IA Clarington Canadian Small Cap FundQV Investors Inc.49924993
    IA Clarington Global Dividend FundiA Global Asset Management Inc.49574966
    IA Clarington Global Equity FundQV Investors Inc.49584967
    IA Clarington Loomis Global Allocation Class¹Loomis, Sayles & Company, L.P.49524961
    IA Clarington Loomis Global Allocation FundLoomis, Sayles & Company, L.P.49514960
    IA Clarington Loomis Global Equity Opportunities FundLoomis, Sayles & Company, L.P.49564965
    IA Clarington Loomis U.S. All Cap Growth FundLoomis, Sayles & Company, L.P.49904991
    IA Clarington Strategic Equity Income ClassiA Global Asset Management Inc.49554964
    IA Clarington Strategic Equity Income FundiA Global Asset Management Inc.49544963
    IA Clarington Strategic Income FundiA Global Asset Management Inc.49534962

    1This series is only available for new purchases and switches into non-registered accounts.

  2. After you make your selection, we will automatically put your lump sum into the IA Clarington Money Market Fund. A money market fund invests in short-term, fixed-interest instruments, and can be easily sold at any time. It’s considered a good place to park money in the short term.
  3. Over the course of a year, the money in the IA Clarington Money Market Fund is automatically switched into your IA Clarington Dollar-Cost Averaging Fund in equal amounts on a weekly basis.
  4. At the end of the one-year period, your original amount is completely invested in the IA Clarington Dollar-Cost Averaging Fund.

You can participate in our dollar-cost averaging service with an initial investment of as little as $1,000.

Contact your advisor today to learn how to get started.

Disclaimer

The information provided should not be acted upon without obtaining legal, tax, and investment advice from a licensed professional.