When you save money in a fund through regular investments, you can reduce the risks arising from any fluctuations of the value of fund units.
Even experienced investors find it extremely difficult to seize the most favourable moment for entering a fund, i.e. to find the moment when the fund unit prices are the lowest. In case of regular investments your have the opportunity to purchase fund units during both high and low moments, which makes the average purchase price in general more favourable than in case of making single placements. It also helps to better withstand any falls in the fund unit prices.
In case of a standing order for fund transactions, the bank shall start to purchase the fund units chosen by you on regular basis (according to the frequency chosen by you) for the amount determined by you. It is also cheaper to buy units using a standing order as the service charge is 50% more favourable than in case of single purchase orders.
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