It is common to hear the advice “Invest regularly”. Let’s break down why this can be a good strategy, as opposed to occasional lump sum investments. Regular investments can…
- Enable you to apply a disciplined savings approach to help successfully build wealth over time
- Allow you the opportunity to ease into any type of market and reduce long-term portfolio volatility
- Make it easier to apply the pound-cost averaging approach (meaning, you invest in the same asset frequently, averaging out the cost between the highs and lows, instead of trying to time the market)
- Allow you to start investing earlier, as you can effectively invest with regular smaller amounts rather than saving a lump sum
- Allow you to start investing without having to cut into significant savings
The value of investments can fall as well as rise and you could get back less than you invest. If you’re not sure about investing, seek independent advice.