Announcing A New Recompound Feature: Auto DCA
By popular request from our clients, we are launching a new feature which is Auto Dollar Cost Averaging (DCA). This new Recompound feature is for you who wants to regularly put fresh funds into your investments. It works as follows, in your respective WhatsApp groups:
You let us know how frequently you want to inject fresh funds into your investments either:
Weekly,
Biweekly,
Monthly,
Quarterly or
Annually
You tell us how much funds you want to add each time (e.g. Rp 10.000.000,-).
Then every [period of time from no. 1] we will remind you to add [investment amount from no. 2] to your investments. Upon your confirmation, we will issue the investment information for you.
Most certainly along the way you can change the above parameters if lets say you get a salary bump due to a promotion 🥳
It is also non-binding. If you decide not to add new funds for any reason, that is completely fine. We are only here to help you remind your intention to add funds to your investments consistently.
Rationale
Because most, if not all, of our clients have a steady stream of income, they naturally want to budget a portion toward their investments in a regular interval. Our job is to make this intention explicit for them and easy for them to execute.
From our previous blog posts, we think that it is rather clear that we are a huge fan and believer of consistency and naturally our clients are too (like attracts like). So we want to make consistency, in terms of investing, easier to achieve.
As a side benefit, it is also true that dollar cost averaging into a position over the long run would allow investors to reduce investment risk significantly because it dampens regular stock price fluctuations.
Before Recompound Auto DCA
To break it down, the habit of our clients before this feature might be something like this:
Want to allocate a portion of our earnings to invest (but don’t know how much)
Setup Google recurring calendar to remind them to invest in stocks
When the day has come for them to invest, they might have received additional information or they see the price fluctuations not in their favour and they end up getting confused.
End up not deploying funds 😐
After Recompound Auto DCA
Now, we hope that it will be like this:
Want to allocate a portion and ready to commit it using Recompound’s Auto DCA. For e.g. Rp 5.000.000,- every month.
Our system will remind you via WhatsApp, asking for your confirmation if you want to add Rp 5.000.000,- to your investments.
If you do, our investment team will prepare the stock selections for your consideration that uses the Rp 5.000.000,- budget.
Once all is ok, you execute like a boss 😎
Congratulations, being more consistent have been made easier!
To conclude, we hope that this feature would be useful for those who want to regularly allocate a specific amount of funds into the stock market.
p.s. this feature is free to use for all of our clients. Just let us know in the respective groups that you’d like to use it and we will assist you right away.