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Dollar Cost Averaging


 

Name

Dollar cost averaging is also known as "Automatic Investment Plan of Funds (or fund AIP)"

Introduction

Dollar cost averaging refers to a transaction that investors authorize a sales outlet of Investment Fund to deduct the agreed amount of money from the designated fund account at the agreed date automatically and periodically(such as monthly), and apply for fund subscription. Dollar cost averaging includes: Dollar cost averaging application, cancellation and transaction.

<Supplementation: Deduction time of dollar cost averaging: the batches of money will be deducted in the evening of the agreed deduction date by the bank.>

Processing Time

The application processing time is the same as the investment funds management company processing investment funds purchasing or subscription business.

Transaction Rule

In handling a dollar cost averaging business, investors are entitled to decide the periodical deducted amount of money which is not restricted to the minimum limit of each purchasing in routine deals but shall be no less than the limits regulated by the Investment Funds company for the dollar cost averaging investment business. If the deduction fails at the deduction date due to the abnormal stattus of investor's fund account, the deduction will be considered an unsuccessful transaction. If investors' fund account has no sufficient funds for deduction of several investment funds at the deduction date, Bank of China shall conduct deduction according to the fund code from small to large in sequence; the failed duduction will be considered as an unsuccessful transaction. If the current deduction is unsuccessful, the sales outlets will not handle the dollar cost averaging subscription business for investors for that month, and will continue the transaction next time. The dollar cost averaging application will be cancelled automatically if deduction for a certain investment funds fails three times in a row.

Our Advantages

Lower investment threshold and simple procedures. Customers could enjoy the benefits of even investment, risk diversification and adding up funds.

Target Customers

Domestic and overseas residents with full capacity for civil conduct.

Process

Go through the flow at the outlets of Bank of China with the required papers.

Required Documents

Valid ID card

Risk Disclosure

The deduction date for dollar cost averaging only last from 5th to 20th day each month (including 5th and 20th included), except which the application submitted are considered invalid. Deduction for a certain investment funds may be done for multiple times within a month, but only once for the same investment fund at the same day. Bank of China will deduct the fixed sum of money at the fixed date according to the application prescription, and submit application for fund subscription. In case that the deduction date falls on a non-working day for investment funds (holiday), it will be postponed to the next workday, but not to the next month. Should the agreed deduction date in a certain month be the "Suspension of Business" date or "Reject Purchasing" date for the investment funds, Bank of China will not conduct deduction and the transaction of that month is suspended for one time.

Dollar cost averaging application could not be modificated but be cancelled. If investors need to make modification to the date or sum of money, they have to go through the cancellation procedures and then make a new application.

Investor's applications for the cancellation of the trading account and Investment Funds account are considered as an automatic termination of the dollar cost averaging business upon confirmation.

Charges

If no separate announcement, the subscription fees and the fees charging mode are equal to the normal subscription.

Information on the latest dollar cost averaging funds:

Announcement of the Bank of China on increasing the preferential charging rate for purchasing Investment Funds under Dollar Cost Averaging business.(November 2, 2010)

Announcement of the Bank of China on increasing the preferential charging rate for purchasing Investment Funds via online banking.(November 2, 2010)

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