Investors with a regular savings plan can do better in times of market instability than those depositing lump sums, Fidelity says.
It says the ‘pound cost averaging’ process – investing regular, monthly sums into share-based funds – is a “tried and tested” method of dealing with equity and bond market volatility. “It enables savers to take advantage of falls in stock prices through a disciplined process of buying more shares at lower values,” Fidelity says. Fidelity International UK managing director Richard Wastcoat says investors worried about market volatility could consider a regular savings plan. “When markets fall, understandably investors lose confidence and either stop investing new money or redeem their hol...
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