I have always been a great fan of regular saving plans.
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I started one for my son within a few weeks of his birth and will soon be opening one for my daughter, who was born a few days ago. Saving for things that we want later in life is a great habit to develop at an early age, but I think that a regular savings plan is something that most people would benefit from.
One of the beauties of buying mutual fund units via a regular saving plan is that it takes a lot of emotion away from investing. We all know that the two emotions that are the enemy of every investor are fear and greed. When markets are going up week after week, it is hard to stop oneself from being sucked into the excitement and investing at the top.
Similarly, when there is nothing but despair in the news and shares are cheap and unloved, it is very hard to summon the courage to invest.
When we look at great times to have invested, they tend to be during periods of crisis. We may tell ourselves that we will invest the next time markets are at bargain-basement prices. However, when such times arrive, we tell ourselves this time it's different and find a reason not to invest.
A few weeks ago, I wrote an article suggesting it might be a good time to invest in India after the huge share price falls. With hindsight, it looks like a good time to have invested, but I suspect that few would have done so as the news flow was so grim at the time.
If you were investing in a regular saving plan, you would have been buying some very cheap units during the summer. In fact you would have been buying lots of cheap units after every major crisis.
For every US$100 (Dh367) that you invest every month, you will be buying a lot more units when they are cheap than when they are expensive. While this may seem a basic statement of mathematics, it is the principle behind a really important investment technique known as dollar-cost-averaging.
Quite simply, if you regularly invest in a fund that at some point in the future rises, you will reap handsome rewards from having accumulated so many cheap fund units during times when prices are depressed. If you choose to invest in an insurance savings scheme, you may also have the benefit of some valuable insurance protection alongside your investment.
So what sort of person would benefit from dollar-cost-averaging? I would say almost everyone. If you are an expatriate hoping to save a nest egg to take home with you, a regular savings plan is a really convenient way of meeting that need.
Of course, if you have a particular financial goal in mind such as a wedding, school fees or a top-up to your retirement fund, then a regular savings plan can be the perfect solution.
Even if you are a serious investor who enjoys trading in individual equities, currencies, bonds or commodities, regularly saving in a fund can provide a good bedrock to build your portfolio.
The choice of funds in a regular savings plan is clearly driven by your personal circumstances, attitude to risk and the length of time before you will need to redeem the investment.
I will be investing in relatively high-risk investments for my children as they have a very long time horizon and the inevitable setbacks will give us the chance to buy lots of cheap units. That is why I am investing in a mixture of funds specialising in areas such as emerging markets.
Alan Durrant is the group chief investment officer and general manager of the asset management group at National Bank of Abu Dhabi
UAE squad
Men's draw: Victor Scvortov and Khalifa Al Hosani, (both 73 kilograms), Sergiu Toma and Mihail Marchitan (90kg), Ivan Remarenco (100kg), Ahmed Al Naqbi (60kg), Musabah Al Shamsi and Ahmed Al Hosani (66kg)
Women’s draw: Maitha Al Neyadi (57kg)
Mission: Impossible - Dead Reckoning Part One
Director: Christopher McQuarrie
Stars: Tom Cruise, Hayley Atwell, Pom Klementieff, Simon Pegg
Rating: 4/5
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Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
MATCH RESULT
Al Jazira 3 Persepolis 2
Jazira: Mabkhout (52'), Romarinho (77'), Al Hammadi (90'+6)
Persepolis: Alipour (42'), Mensha (84')
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
PROFILE BOX:
Company/date started: 2015
Founder/CEO: Rami Salman, Rishav Jalan, Ayush Chordia
Based: Dubai, UAE
Sector: Technology, Sales, Voice, Artificial Intelligence
Size: (employees/revenue) 10/ 100,000 downloads
Stage: 1 ($800,000)
Investors: Eight first-round investors including, Beco Capital, 500 Startups, Dubai Silicon Oasis, Hala Fadel, Odin Financial Services, Dubai Angel Investors, Womena, Arzan VC
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
Mental health support in the UAE
● Estijaba helpline: 8001717
● UAE Ministry of Health and Prevention hotline: 045192519
● UAE Mental health support line: 800 4673 (Hope)
More information at hope.hw.gov.ae
Ant-Man and the Wasp
Director: Peyton Reed
Starring: Paul Rudd, Evangeline Lilly, Michael Douglas
Three stars
RESULTS
Bantamweight: Jalal Al Daaja (JOR) beat Hamza Bougamza (MAR)
Catchweight 67kg: Mohamed El Mesbahi (MAR) beat Fouad Mesdari (ALG)
Lightweight: Abdullah Mohammed Ali (UAE) beat Abdelhak Amhidra (MAR)
Catchweight 73kg: Mosatafa Ibrahim Radi (PAL) beat Yazid Chouchane (ALG)
Middleweight: Yousri Belgaroui (TUN) beat Badreddine Diani (MAR)
Catchweight 78KG: Rashed Dawood (UAE) beat Adnan Bushashy (ALG)
Middleweight: Sallah-Eddine Dekhissi (MAR) beat Abdel Enam (EGY)
Catchweight 65kg: Yanis Ghemmouri (ALG) beat Rachid Hazoume (MAR)
Lightweight: Mohammed Yahya (UAE) beat Azouz Anwar (EGY)
Catchweight 79kg: Souhil Tahiri (ALG) beat Omar Hussein (PAL)
Middleweight: Tarek Suleiman (SYR) beat Laid Zerhouni (ALG)
Company Profile
Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
SPECS
Engine: 1.5-litre 4-cylinder
Power: 101hp
Torque: 135Nm
Transmission: Six-speed auto
Price: From Dh79,900
On sale: Now
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
COMPANY PROFILE
Company name: Co Chocolat
Started: 2017
Founders: Iman and Luchie Suguitan
Based: Dubai, UAE
Industry: Food
Funding: $1 million-plus
Investors: Fahad bin Juma, self-funding, family and friends
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
MATCH INFO
Final: England v South Africa, Saturday, 1pm