Why you might consider a regular investment plan
Deciding to invest an amount each month is a very easy and manageable way to invest for the future.
Investing in the stock market through a regular investment plan can help to smooth out the market highs and lows - which can be particularly helpful in these uncertain times. Making a regular investment, for example on a monthly basis, can be a beneficial way to help reach a long-term investment goal such as funding university fees or retirement plans.
We have several products you can choose to invest in such as an ISA or even setting up a pension for you or your child. We have different funds available and you can decide on the level of risk you’re comfortable taking and the type of markets you’d like to invest in. You can easily change that in the future if you want to – if you need to change the amount you regularly pay in, or stop, you can.
Little and often
Drip-feeding regular amounts in on a monthly basis is a great discipline to get into for long-term investors. It means you don’t have to remember to invest - the money can be automatically added to your holdings each month. Small amounts have the potential to grow over time, depending on the performance of the funds you choose.
As long as you periodically check you’re in line with your investment goals - seeking professional financial advice where necessary - you can let your money go to work.
Pound cost averaging
When you’ve set up your regular payments, you may benefit from pound cost averaging, a complex-sounding name for a simple process. In short, pound cost averaging means you end up buying fewer shares when they are more expensive and more when they are cheaper. Over time this drip-feeding can help smooth out the price you pay for your investments.
For example, if a company had a share price of £1, you would buy 50 shares with a £50 monthly investment. If the share price halved to 50p, you would pick up 100 shares that month. That means, if the share price recovers to £1, the value of your investment has grown and you have more to show for your money.
However, no investment technique guarantees success. For example, if you’re on a regular investment plan and invest in a fund or share with a price that continues to increase, then over time you’ll get fewer shares for your investment.
Invest for the future
Deciding to invest an amount each month is an easy and manageable way to invest for the future. Over the long-term, these regular sums can help you towards your bigger financial goals.
There are two ways you can start investing with us, either with advice from an NFU Mutual Financial Adviser or with no financial advice from the NFU Mutual self-investor service - this is our non-advised level of service.
Our advised service provides the help of NFU Mutual Financial Advisers who will create a plan for how to invest your money based on your personal cricumstances. Our self-investor service is designed for people who have carried out an assessment of their own personal circumstances and know the amount they would like to invest, their risk appetite and financial goals.
You should be aware that the value of investments may go down and you may get back less than you invested.
When you contact us we'll explain the advice services we offer and the charges.
NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers.
Financial advice is provided by NFU Mutual Select Investments Limited.
Our self-investor service has no advice fee and is for people who know the products they want, how much they want to invest and are confident making their own investment decisions in the here and now, and also looking ahead to the future.