Stocks Monthly Investment Plan

Did you know? We even cover the costs levied by Hong Kong regulators! So you have even fewer fees to worry about when you invest with us.

¹Until further notice, existing SMIP customers and customers who set up a new SMIP via any channel can enjoy our Perpetual Brokerage Fee Waiver offer. This includes a waiver of the 0.25% standard brokerage fee and all transaction-related charges: stamp duty, SFC transaction levy, AFRC transaction levy, HKEX trading fee, deposit transaction charge and Central Clearing and Settlement System fee.

Other securities services charges may be levied on investment services account / securities account.

Choose from the following Hong Kong-listed stocks, including exchange-traded funds (ETFs).

You can use your HSBC savings or current accounts to make your monthly contributions.

Dollar cost averaging refers to the buying of securities at scheduled intervals with a fixed amount of money, whether the stock price is rising or falling. When the stock price goes down, you'd buy more shares; and when the price goes up, you'd buy fewer shares. Over time, the average price you pay for the stock is likely to be lower than the market price because you'll have bought more shares at lower prices.

Plus, as the stocks are purchased collectively for SMIP investors, you'll be buying your favourite stocks at their average price each month.

This investment method is called 'dollar cost averaging'. It lets you buy shares close to their average price over the period. This helps smooth out the highs and lows, offsetting marketing volatility. As long as there's overall growth for the stocks you chose, you can manage the purchase price easily at a lower risk. So you can worry less about timing, as the risk from short-term market fluctuations will be reduced.

• The Cut-off Date of SMIP is on the 7th calendar date of each month (23:59 HK time) including Saturday, Sunday or a Hong Kong public holiday. Customers should submit their instruction to setup a new SMIP, amend or terminate an existing SMIP on or before the Cut-off Date of each month.
• Customers should ensure their designated cash account has sufficient available funds to cover the gross monthly investment contribution of their existing SMIP from the first business day after the Cut-off Date until 2 business days after the stock is purchased.
• On the second business day after the Cut-off Date, HSBC will confirm whether customers’ designated cash account has sufficient funds before arranging the purchasing order to buy the stocks.
• On the third trading day after the Cut-off Date (Transaction Date), HSBC will purchase stocks on behalf of all SMIP customers at the prevailing market price.
• On the second business day after Transaction Date (Settlement Date), the actual settlement amount of stocks purchased will be debited from customers’ designated cash account and the average purchase price for all stock purchases will be used as the settlement price as well as to calculate fees and charges
• Purchased stocks will be deposited into customers’ investment services or securities account on the settlement date (i.e. the second business day after the Transaction Date)

In the preceding example, you invest a total of HKD24,000 to purchase 26,277 shares over six months, at an average share cost⁴ of HKD0.913. Dollar cost averaging lets you buy shares for lower than the average market price of HKD0.917 over that period.

²Amount available for share purchase = Monthly investment amount - Brokerage Fee (0.25% of monthly investment amount or HKD50, whichever is higher)

³Average market price = sum of share prices ÷ number of months

⁴Average share cost = total investments ÷ total number of shares purchased

This example is for illustration purpose only. The actual average share cost could be different from the example provided. The actual average share cost may not be lower than the average market price for any given period. 

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