Drip-feed investing 'will stave off volatility'

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BY drip-feeding money into markets, investors can cope with the type of volatility currently seen in world equity and bonds markets, according to Richard Wastcoat, UK managing director at Fidelity International.

By placing regular, monthly sums into share-based funds, investors can benefit from ‘pound cost averaging’. This enables savers to take advantage of falling stock prices, whereby shares are bought at lower values. Wastcoat said: “When markets fall, understandably investors lose confidence and either stop investing new money or redeem their holdings. "However, investors who are concerned about market volatility could consider a regular savings plan. By investing a consistent amount at regular intervals, investors can gradually ‘drip-feed’ into the market regardless of the price on any giv...

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