Why have a regular savings plan

Making regular monthly contributions to your investments as part of a savings plan can help them grow into a sizeable sum over the long term, even if you’re only investing a small amount.

Investing smaller sums on a regular basis might also mean you can start investing sooner, giving you time to take advantage of the growth potential of compounding and the markets themselves.

Remember that the value of investments and the income from them can go down as well as up, so you may get back less than you invest.

Smoother returns

As a natural part of your investment journey, there will be periods when prices go down as well as up. Investing in the dips means buying into your long-term investment at a lower price and bringing down the average price you have paid across the life of the investment – think of it like shopping for a product you know you like in the sales. In financial terms this is known as pound-cost averaging.

The difficult part is deciding when to invest and this relies on timing the low points – something even the pros treat with caution. So investing regular amounts every month helps take the guess work out of it, by helping you catch the high points as well as the low, smoothing your returns over the long term.

 

How to open a regular savings plan

The Select 50 Balanced fund is exclusive to Fidelity Personal Investing customers; you can't buy it through anyone else. You can invest from £1,000 as a lump sum or set up a regular savings plan from £50 a month.

Please remember this is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The value of investments can go down as well as up, so you may get back less than you invest.

Explore more principles for good investing

The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.