Cost Averaging

Cost Averaging is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time. This spreads the cost basis out over several years, providing protection against changes in market price.

Select the Cost Averaging activity from the Add Activity link on the Secondary menu. Once the cost averaging information is entered, click OK. Then process the activity by clicking the lightning bolt icon to the right of the activity on the Activity screen. The Cost Averaging activity will spawn itself for the next frequency.

Note: Cost Averaging Source and Cost Averaging Target allocations must exist on the policy before this activity can be processed.

Cost Averaging Activity Fields

Next Subscription Date

Date that a new cost averaging activity should be spawned.

Fund Subscription Frequency

Length of time between each cost averaging activity.

Cost Averaging activity for unit linked policies

Add Activity Window with CostAveraging Selected