Trying to time the market may be tempting, but making regular investments may be a better plan.
Pound cost averaging is a simple concept, but it’s one of the most compelling arguments in favour of regular investing.
It’s what happens when your money buys investments regularly at different prices, meaning you get more units or shares for the same money when prices are low.
Below is an example comparing 12 regular investments of £100 over a year to a single lump sum investment of £1,200 made at the start of that year.
From this example you can also see how you could be missing out on the full benefits of a rising market, unless you invest extra amounts while the shares are increasing in value.
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Important informationPlease remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested.
All investments carry an element of risk which may differ significantly. Alliance Trust Savings does not give advice. You need to ensure you understand the risks and commitments before investing. If you are unsure you should consult a Financial Adviser before investing.
Charges may be subject to change in the future.