What is an Auto-deposit?
An auto-deposit is the action of determining a specific amount of money that you would like to invest on an ongoing basis, and automating the process.
In a Sarwa context, this means you would set up an auto-deposit to invest in your Sarwa portfolio a certain amount at a regular interval towards your financial goal(s). This interval could vary based on your preference (e.g. weekly, monthly, quarterly, etc.).
For example, you can set up an auto deposit to transfer $2,000 into your Sarwa account on the 1st of every month. You can read more about Systematic Investment Plan (SIP's) here.
Why would I set up auto-deposits into my Sarwa account?
There are many benefits to setting up auto-deposits:
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You enjoy the benefits of dollar cost averaging: As we know, the stock market can go up and down. Dollar-cost averaging lessens the impact of these swings by providing you the opportunity to pick up shares at a cheaper price when markets are down. This means that you will be purchasing more stocks since you are investing a fixed amount. You can read more about the benefits of dollar cost averaging here.
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You can “set it and forget it”: Thanks to an auto-deposit, you no longer have to worry about when to invest. The headaches and guesswork of choosing when to make your deposit are now no longer, and you can reach your financial goals one deposit at a time by automating the process.
I'm convinced! But How do I set it up?
To set up an auto-deposit, kindly follow the instructions here.