Most of us don’t have big lump sums to invest all at once. It’s more typical to add regular monthly amounts to your investments as you build your wealth.
When you pay into your investments regularly, no matter where the market is headed, you are doing what experienced investors do. You’re ignoring the market ‘noise’ and focusing on investing in terms of what's right for you and applying the cost average effect to your investments.
In simple terms when prices are high, fewer shares are purchased and when prices are low more shares are purchased.
Say you invest €200 per month. When markets are high, that might only buy you 40 shares in your chosen fund because the shares are worth €5 that month. But the next time markets fall, shares in your fund might be worth €4 each, so your €200 payment will buy you 50 shares.
Markets have regular ups and downs and they tend to recover and gain over the longer term but there is a chance it wont, so its not guaranteed.
Most experienced investors will tell you that ‘time in the market’ beats ‘timing the market’. In other words, the longer you can invest, the better it could potentially be, as with all investments there is no guarantee and past performance does not predict future returns.
If you’re interested in exploring long-term investment solutions, we’ve got a wide range of options.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 08 May 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
Date of first use: 1 July 2024
Doc ID: 3566338
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