Continuous Savings Plans (CSP)
Whether youâ€™re saving for retirement, a childâ€™s education, or planning a major
purchase, a CSP can make it easier. A CSP is:
Saves you valuable time and makes it easy to save for your goals, and you'll never have to worry about making last-minute lump-sum investments.
You can regularly invest as little as $50 according to the schedule that works best for you, with no setup fee.
Compound growth on your savings speeds up your progress towards your goals. Investing early and often through a CSP is an ideal way to take advantage of this powerful effect.
See how quickly your savings grow when you invest regularly
Comparison: Using Actual Market Results for S&P/TSX Index
The following example uses actual market results during a volatile market period to illustrate the difference a CSP and dollar cost averaging can have on your investment.
How Dollar Cost Averaging Works
With dollar cost averaging, you buy more units of mutual funds when prices are low and fewer when prices are high. Over time, this can reduce your average cost per unit.
Take advantage of all the dips
During market dips, your CSP contributions will buy more shares and, as the market goes up over time, those shares increase in value. Continuously investing, can help you grow your savings faster over time.
*Assumes annual investments of $2400 per year from February 1998 to December 2015. **Assumes a monthly investments of $200 per month from January 1997 to December 2015. Does not include reinvested dividends. BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp. and BMOâ€™s specialized investment management firms. BMO Mutual Funds refers to certain mutual funds and/or series of mutual funds offered by BMO Investments Inc. a financial services firm and separate legal entity from Bank of Montreal. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts or prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Â®BMO (M-bar roundel symbol) is a registered trade-mark of Bank of Montreal.