Pound cost averaging

Pound Cost Averaging and ISAs

Recent market turbulence has just reminded all equity investors that their investments can fall in value as well as rise; in practice, this is probably more a return to the norm, rather than a new phenomenon. Unfortunately, only time will tell!

Everyone needs to remember that there is at least one positive to market turbulence, especially when you are drip feeding money into a stocks and share ISA over a number of years. Not everyone can afford to put the maximum of £20,000 into an ISA in one go, so many people put somewhere between £50 and £1,666.67 in every month and use it to ride the rise and falls of the market.