What is pound cost averaging?
Pound Cost Averaging is the concept of making regular contributions to your investments in order to smooth out market volatility.
Pound cost averaging is the regular drip-feeding of more modest amounts of money into one or more investment markets. The ‘averaging’ term comes from the fact that you are committed to buying shares or investing in property or pension funds, at whatever price the market is currently at.
This helps to lessen risk as you are not committing your lump sum.
Book an appointment to discuss the pros and cons of Pound Cost Averaging with us.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.