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RaboDirect
 

Invest regularly

Regular Investor Plan

We've developed a great product that allows you to invest a set amount of money into one or more funds on a regular basis.

Investing in Managed Funds using a Regular Investor Plan will help smooth out market ups and downs, purchasing more units when the unit price is lower and fewer units when the unit price is higher, and may mean that you are better off than making a lump sum investment(s). A Regular Investor Plan also reduces the risk of a large fall in value from investing a lump sum at a high unit price, only to have the unit price fall. This type of regular saving is often referred to as 'dollar cost averaging'.

For only $250 you could be up and running and on your way to achieving your investment objectives. Better still, we've reduced the entry fee to 0.50% for all Regular Investor Plans, a saving of over 33% on our normal entry fee!

Benefits and features

Benefits

• Get started with just $250 a month
• Smoothes out market ups and downs
• May provide a better average price over time
• Avoids the risks of lump sum investing when unit prices are high
• Safer than trying to time the market

Features

• Choose from over 40 managed funds
• Choice of topping up with lump sums
• Ability to change fund selection at any time
• Buy and sell anytime - no lock ins or penalties
• 24/7 online access to your portfolio

Dollar cost averaging explained

The principle behind dollar cost averaging is simple. You invest the same amount each month. In the meantime, the fund's unit price fluctuates with the market value of its assets. 

When the unit price is lower, your regular contribution buys more units; when it’s higher, your regular contribution buys fewer units. As a result, dollar cost averaging may help deliver a lower average entry price over time.

Single lump sum vs. a RaboDirect Regular Investor Plan

Joe & Jane have each invested $4,500 into the same Managed Fund.

Joe invested his $4,500 as a single lump sum while Jane staggered her investment over 9 months, using a RaboDirect Regular Investor Plan.

Here’s an example that illustrates how it works:

Frequently Asked Questions

Can I amend or cancel a plan?

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Yes, you can cancel or change your plan online. 
  1. Log into RaboDirect.
  2. Click 'PIE Funds' then 'Regular Investor Plans'
  3. Click 'Actions' next to your plan
  4. Select 'Change' or 'Cancel'
  5. Make any required changes
  6. Click 'Confirm' and use your Digipass to authorise the transaction
Just make sure you do this at least one business day before the next investment is due.

How many Funds can I choose as part of my plan?

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You can have as many funds in your plan as you like but remember you must invest at least $250 in each fund. If you want to invest in four funds, the minimum amount of your plan will be $1,000.

What about fees?

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RaboDirect charge an entry fee each time you purchase Managed Funds which is reduced to 0.50% if you invest by way of a Regular Investor Plan (an entry fee of 0.75% is charged for one-off purchases). 

The fund managers will also charge their own fees such as maintenance and performance fees. See the Product Disclosure Statements to find out what fees will be charged. 



What happens if I have insufficient funds in my RaboDirect Savings Account?

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We will try up to 3 times (over 3 days) to complete the transaction. If it is still unsuccessful due to insufficient funds, this payment will be missed. 

If you are regularly transferring funds into your RaboDirect savings account, we recommend setting your Regular Investor Plan three business days after the funds reach your account to ensure that they are cleared.