Exploring the benefits of saving regularly
As an investor, sometimes it’s hard to cut through the noise of bygone or upcoming political and economic events, we’ve certainly had our fair share lately. There are always investment opportunities, even in times of uncertainty.
The benefits of saving regularly make a compelling long-term investment story. Not only does regular investment suit some people’s income streams but it also instils a great discipline. Committing to investing a small, affordable amount each month helps build future financial security.
Investing in a pension or a tax-efficient product such as an ISA can provide an opportunity to kick start a regular investment discipline.
Phased investment, such as pound cost averaging, can smooth returns over the longer term, and can reduce the impact of market timing and volatility on purchase prices.
This strategy enables the investor to average-out the peaks and troughs of the share or unit price, smoothing out purchase prices because of the regular contribution throughout the varying market conditions.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
The information within the article is for information purposes only and does not constitute individual advice.