Blue Chip Value Averaging Fund: Reduced Market Volatility
The Fund's investment objective is to preserve capital and seek consistent long term
income and growth by investing primarily in a diversified basket of Exchange Traded Funds
(ETFs) that provide direct or indirect exposure to global fixed income and equity markets.
What is Value Averaging?
Dollar cost averaging is simple in concept: Invest a fixed amount at equal intervals and
continue to do so over a long period. The result is that more shares of a stock or mutual
fund are purchased when prices are relatively low and less are purchased when prices are
relatively high. This can result in lower average per share cost over time. Dollar cost
averaging is a "Buy low, buy less high" strategy, as there are no rules for selling.
If market timing can be hazardous to one's return,
it seems to be quite beneficial as well.
Value Averaging is a variation: Instead of investing a fixed amount each interval, the
amount invested varies so that the total value of the investment increases by a fixed sum
or percentage each interval. If share price increases alone cause the total value of the
investment to increase above the planned fixed amount, then the fund must sell shares
instead of adding to the investment.
Value Averaging (like Dollar-Cost Averaging) helps investors to tide over market volatility without worrying
too much about market timing. Neither approach requires a forecast of market direction. And
with both plans, the discipline of periodic investment during all market situations and the
continuation of the plan over long investment periods - of 5 years, 10 years, 20 years or
even longer - provides substantial benefits.
For more detailed information on Value Averaging, see the
Value Averaging Education Website
for background, information, and analysis. And
click here for News & Press
on Value Averaging.
Safety of Funds
As a fiduciary precaution:
1) the Investment Manager has the authority to make investment decisions but does not have check-signing authority on The Fund's bank account or the power to enforce the provisions governing the Fund;
2) the Directors have the authority to enforce the provisions governing the Fund but do not make investment decisions.
The Bottom Line:
- The Blue Chip Value Averaging Fund will use Value Averaging to avoid large drops in the
overall portfolio value.
- Value Averaging is a nice way to ensure you follow one of the most well known
buy low and sell high.
- This method is particularly valuable during times of high volatility to help ensure
investors maintain discipline in their investing.
How it Works
If you wish to invest, please
for a Subscription Agreement.
The minimum investment is $ 25,000.
* All documents require Adobe Acrobat Reader for viewing