Which strategy would you use to make a regular investment in a UITF?

Using a periodic investment approach is an effective strategy for making regular investments in a UITF (Unit Investment Trust Fund). This method involves investing a fixed amount of money at regular intervals, such as monthly or quarterly. This approach is beneficial because it allows investors to take advantage of dollar-cost averaging, which can help mitigate the impact of market volatility over time. By consistently investing over a long period, the investor acquires more units when prices are low and fewer units when prices are high, potentially lowering the average cost per unit.

This strategy aligns well with the principles of UITFs, which are designed for long-term investments rather than for short-term trading. It encourages disciplined saving and investing habits, making it a suitable choice for individuals looking to grow their wealth steadily.

Other options, like lump sum investments, can involve higher risk as they depend heavily on market timing. Reinvestment of all dividends, while beneficial for compounding, does not constitute a systematic investment strategy on its own. Speculative trading is generally not compatible with UITFs, which are meant for more conservative and long-term investment strategies. Hence, the periodic investment approach stands out as the most appropriate method for regular investing in UITFs.