How 'little and often' can reap rewards

Top up your ISA by investing little and often

Investing small monthly sums in a stocks and shares ISA can be a good long term strategy.

If you want an affordable way to build up your investment without having to try and predict stock market fluctuations then regular investing could be a good solution.

Many people only consider investing when they have a large lump sum, but regular investing involves committing smaller sums each month. This allows you to choose an amount which comfortably fits your monthly budget.

When stock markets fall, the benefit is that your regular monthly investment will buy more shares or fund units. Of course, when prices rise your money will buy less.

This process, known as ‘pound cost averaging’, means you don’t have to worry about investing a lump sum at the wrong time just as markets fall. Regular investments over the longer term (meaning five years or more) means you can potentially overcome short term market volatility.

Start sooner and invest for longer

Younger people may feel they don’t have money to start investing, but committing to investing little and often means your money has the potential to grow for a longer period.

Starting investing in your 20s or 30s will allow you to get you into the investing habit early. You don’t need much — even investing £100 a month over a five year period will add up. You can always increase these monthly investments if and when you can afford it.

Annual ISA allowance

ISAs are popular as they offer a tax-efficient way to invest. Whatever amount you decide to invest on a regular basis, you should bear in mind that the total you can put into an ISA is £20,000 each tax year.

Talk to your local NFU Mutual Financial Adviser about:

  • the investment options available to you
  • how much you can afford to invest each month
  • making the most of your annual ISA allowance.

Find your local Agent who will put you in touch with an NFU Mutual Financial Adviser or call 0800 622 323.