Pound cost averaging explained

At some point  in your life, you might receive a lump sum of money, something more significant to invest. This might come your way because of inheritance, a pay out from another investment, the sale of a property or a commercial asset.

This situation, however nice, does give you a bit of a dilemma as to what to do next and how to invest it. It throws up questions around current issues such as soaring inflation, rising interest rates and other economic challenges facing the UK and the world at large.

Faced with this set of circumstances, many investors prefer to spread the investment out. This kind of investment approach is sometimes known as “pound-cost averaging” – our handy article in the link below will explain more and take you through the options around this lower stress and lower risk option so you can weigh up the pros and cons should this situation apply to you.

PF Pound Cost Averaging guide

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