Slow and steady wins the race is an age-old adage that couldn’t be more true of investing. A common misconception with investing is that you need a large lump sum to get started but the rules are changing and now you can have an investment account with as little as £1.
Grow your investment over time by discovering your investor profile
This couldn’t be easier to do. You can set your direct debit up within the Moneyfarm app, choose the date it will leave your account and the amount you’ll contribute. This then automatically goes to your chosen portfolio and is invested by our team of portfolio managers in way that is tailored to your investor profile.
The benefits of investing regularly
Investing via direct debit has some real financial benefits as well as being incredibly easy for you.
- The cost you enter the market at is averaged over time, this often means you end up paying less which in turn boosts your returns. This is known as Pound Cost Averaging.
- Your exposure to market volatility is lowered. Markets move around all the time by investing regularly you avoid taking a gamble on a particular period.
- Your wealth grows over time. By dedicating a proportion of your monthly income to an investment each month you build up your exposure to the markets and increase the possibility for returns.
Sometimes it isn’t possible to set-up an investment with a large lump sum, but contributing a smaller amount each month is a lot easier to manage. Add this in to your monthly budget, get into the habit of investing and watch your wealth grow.