Watch the video and learn how saving a regular monthly sum can reduce your investment risks and lower the cost of investing.
Key learning points:
With a regular savings plan, you can turn short term fluctuations in the price of your investments to your advantage.
One of the main benefits of a regular savings plan is the practice of Dollar Cost Averaging, whereby you regularly purchase a fixed dollar amount of an investment or portfolio.
With Dollar Cost Averaging, as share prices rise and fall, you buy more shares when the price is low and fewer shares when the price is high. This has the effect of averaging out the actual cost of your investment over a longer period, and reduces the chance of losing a lump sum of money by buying in at the wrong time.
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