Shares - - TALKING POINT -

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.

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