BENEFITS OF REGULAR INVESTING
How much you invest will be down to your personal circumstances. You may have a lump sum already sitting in cash, but don’t worry if this is not the case as you have the option of drip feeding money into the markets at regular intervals.
The latter approach even has some advantages. Stock markets can be volatile and there is always the fear of a market correction, with significant falls in share prices over a relatively short period.
Precious few investors have the skill to buy and sell shares at exactly the right time. For this reason, it is often said that it is ‘time in’ the market not ‘timing’ the market which delivers the best returns.
Regular investment means you remain invested over the long-term and it could also see you benefit from an effect known as ‘pound cost averaging’.
If, for example, you are investing a set amount, say £100 per month, you will end up buying more shares when prices are lower and fewer shares when prices are higher.