Dollar Cost Averaging

This is achieved when the same amount of money is invested on a regular basis over a period of time.

This dollar cost averaging is convenient for a lot of people. They like the idea of making a monthly deposit to a RRSP fund.

If you are investing in mutual funds or a segregated equity-type fund that you are buying units. These units can be priced at different amounts depending on the day they are purchased. So by purchasing on a monthly basis you should average out to buying at what you might consider to be a reasonable cost. The alternative is to be constantly monitoring the values and buying at the time you feel is most cost-effective.