There are essentially two different ways to invest and the results of each differ significantly. The first method of investing is the Lump Sum Purchase method (i.e. purchasing investments for your RRSP once per year in February). You make your money on the difference between what the investment is worth when you buy it versus what it's worth when you sell it. Obviously, timing is everything - both when you buy and when you sell.

The second method, commonly known as Dollar Cost Averaging, involves purchases whereby you invest a fixed amount on a regular basis.

Dollar Cost Averaging takes the stress and emotion out of your "when to buy" decision and creates a system for steady growth regardless of market conditions. It does not ensure a profit or protect against loss, but it is a sound, sensible method of investing.

Here's how it works:

In a fluctuating market, your regular dollar investment buys more units when the unit value or price is down, and fewer units when the unit value is up. Since it is very difficult to forecast future unit values, by purchasing units on a regular basis you smooth out the fluctuations.

	The advantages of Dollar Cost Averaging are especially apparent when you invest over a period of time long enough to include unit value fluctuations. Dollar Cost Averaging helps you to build your nest egg by accumulating more units in a fluctuating market.