Investing can feel overwhelming. Between the endless market news, the fear of making the “wrong” choice, and the time it takes to actively manage your portfolio, many Singaporeans put off investing altogether. Yet, the reality is that starting early and investing consistently is one of the most powerful ways to build wealth over time. For busy professionals, parents, or anyone juggling multiple financial priorities, a Regular Savings Plan (RSP) offers a simple and effective way to automate your investments and grow your money steadily without constantly worrying about market timing.
In this guide, we’ll explore what RSPs are, how they work in Singapore, the benefits and risks, and practical steps to set up your own automated investment plan.
Why Automated Investing Matters in Singapore
Singapore is renowned for its robust financial system and high cost of living. Many residents are familiar with the Central Provident Fund (CPF) as a primary savings tool, yet relying solely on CPF for retirement may not be sufficient, especially if you want to maintain a comfortable lifestyle in your golden years.
Inflation and rising living costs can erode the value of your savings over time. For example, S$100,000 today may not have the same purchasing power in 20 or 30 years if it’s left idle in a low-interest savings account. Investing in equities, REITs, or unit trusts can help your money grow faster than inflation, but market volatility can make it difficult to know when to buy or sell.
This is where automated investing through an RSP comes in. By committing to regular contributions, you avoid the stress of timing the market. Instead, you benefit from dollar-cost averaging, spreading your investment across different market conditions. Over time, this approach smooths out volatility and builds wealth steadily, even if you’re not checking stock prices daily.
What is a Regular Savings Plan (RSP)?
A Regular Savings Plan is a system where you invest a fixed amount of money at regular intervals—weekly, monthly, or quarterly—into your chosen investment products. It’s like a subscription for your investments: once set up, your contributions are automatically deducted from your bank account or linked platform, so you can “set it and forget it.”
In Singapore, RSPs are offered by major banks, brokerage platforms, and fund houses. They typically allow you to invest in products such as:
- Exchange-Traded Funds (ETFs): Track the performance of a market index or sector. They are low-cost and widely accessible.
- Unit Trusts (Mutual Funds): Professionally managed portfolios of equities, bonds, or a combination of both. They may have higher fees than ETFs but provide more hands-on management.
- Real Estate Investment Trusts (REITs): Invest in commercial or residential property and earn rental income through dividends.
Because RSPs are automated, they reduce the need for frequent manual transactions, making investing simpler for those with busy schedules.
Benefits of Using an RSP
Using a Regular Savings Plan offers several advantages that can help both beginner and seasoned investors:
1. Dollar-Cost Averaging
Markets are inherently volatile. By investing a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high. Over time, this can lower the average cost of your investments, smoothing out market fluctuations and reducing the risk of poor timing.
2. Disciplined Investing
One of the hardest parts of investing is maintaining discipline. RSPs make it automatic: you commit to a fixed amount and interval, ensuring that investing becomes a habit rather than an occasional activity.
3. Time-Saving Automation
For those juggling work, family, and other responsibilities, RSPs eliminate the need to constantly monitor markets or manually execute trades. Once the plan is set up, contributions happen automatically.
4. Compounding Growth
Even modest, regular investments can grow significantly over time due to compounding—the process where your earnings generate their own earnings. For example, investing S$500 per month in a portfolio with an average 5% annual return can grow to over S$400,000 in 20 years without any additional effort.
5. Flexibility and Accessibility
RSPs are highly flexible. You can adjust your contribution amounts, change the investment product, or pause the plan if needed. Many platforms also allow you to start with small amounts, making investing accessible even for those just beginning their wealth-building journey.
Step-by-Step Guide to Setting Up an RSP in Singapore
If you’re ready to start automating your investments, here’s a practical guide:
Step 1: Choose Your Platform or Bank
Major banks in Singapore, such as DBS, OCBC, and UOB, as well as online brokerages like FSMOne, Saxo Markets, and Endowus, offer RSP services. Consider factors such as:
- Fees: Look for platforms with low management or transaction fees.
- Ease of Use: Ensure the platform is user-friendly and supports automated contributions.
- Investment Options: Check that the platform offers the products you’re interested in.
Step 2: Decide on Investment Products
Determine whether you want to invest in ETFs, unit trusts, or REITs. For beginners, a broad-market ETF or a balanced unit trust can offer diversified exposure with lower risk.
Step 3: Set Your Contribution Amount and Frequency
Decide how much money you want to invest regularly and how often. Many RSPs allow monthly contributions as low as S$100–S$500. Choose an amount that fits comfortably within your budget while still allowing for long-term growth.
Step 4: Link Your Bank Account
Provide the necessary banking details so the platform can automatically deduct your contributions. Automation ensures consistency, which is key to the success of an RSP.
Step 5: Monitor and Adjust Periodically
Although RSPs are automated, it’s important to review your plan periodically. Check whether your investments are aligned with your goals, and adjust your contributions or products if needed.
Key Considerations and Risks
While RSPs are generally safe and convenient, there are a few considerations to keep in mind:
1. Fees and Charges
Some unit trusts and REITs may have management fees, which can impact long-term returns. ETFs usually have lower fees, but it’s important to compare costs across platforms.
2. Investment Risk
All investments carry risk. The value of your RSP can fluctuate with market conditions, and there’s no guaranteed return. Diversification can help manage risk, but you should be comfortable with the level of risk in your chosen investments.
3. Liquidity
RSPs are designed for long-term investing. While most platforms allow you to sell your units, it may take a few days for the funds to be available, and market conditions could affect the price you receive.
4. Adjusting Contributions
Life circumstances change. You may need to pause, increase, or reduce contributions. Most platforms make this easy, but it’s important to ensure changes don’t disrupt your long-term goals.
Tips to Maximise Your RSP
To get the most out of your Regular Savings Plan, consider these practical tips:
- Start Early: The sooner you start, the more you benefit from compounding. Even small contributions can grow significantly over time.
- Automate More than One Goal: You can have separate RSPs for different objectives, such as retirement, a home deposit, or children’s education.
- Combine with Other Savings Strategies: Complement your RSP with CPF top-ups, emergency funds, or other investment accounts to create a well-rounded financial plan.
- Reinvest Dividends: If your RSP allows, reinvesting dividends can accelerate growth through compounding.
- Stay Consistent During Market Volatility: Resist the urge to stop investing during market downturns. Dollar-cost averaging works best when contributions continue consistently.
Making RSPs Work for Busy Singaporeans
Imagine Mei Ling, a 30-year-old marketing executive in Singapore. She wants to grow her wealth but struggles to keep track of the stock market. She decides to set up a monthly RSP of S$300 into a diversified ETF portfolio. The contributions are automatically deducted from her bank account, and she doesn’t need to worry about market timing. Over the next 10–20 years, these regular, automated contributions allow her to build a substantial investment portfolio without daily effort or stress.
This story reflects the power of RSPs: they allow everyday Singaporeans to take control of their financial future, without needing to become full-time investors.
Conclusion

A Regular Savings Plan is a practical and beginner-friendly way for Singaporeans to automate investing, reduce stress, and grow wealth over time. By committing to small, consistent contributions, you benefit from dollar-cost averaging, disciplined investing, and the power of compounding—all while saving time and energy.
While there are fees and risks to consider, the flexibility, convenience, and long-term growth potential of RSPs make them an attractive option for anyone looking to simplify their investing journey.
In a fast-paced world where time is limited and financial demands are high, RSPs offer a simple yet effective strategy to ensure that your money is working as hard as you do. Whether your goal is retirement, wealth accumulation, or financial security, an RSP can help you steadily move toward it, one automated contribution at a time.