According to a recent survey from Insight Investments, almost two fifths of people surveyed thought they had to have a lump sum in order to invest in the stock market. Investing in the stock market can be done in many different ways and can cost from as little as £20 per month.
By investing on a regular basis into stock market linked funds you benefit from the ups and downs that are associated with stocks and shares. Each time you pay a premium it buys a certain number of units in your chosen fund. When the stockmarket is low, the price to buy each unit is also generally low, meaning that you buy more units for your money. When the stockmarket is high, the price of units is higher, meaning you buy fewer units for your money. This is known as 'pound cost averaging' and is good for people saving on a regular basis.
As the stock market goes up, so does the value of the units you hold. For example, if units were valued at £1 each, you would buy 10 units for £10. However, if the stockmarket fell and the price of each unit also fell to 50p, the next £10 you invested would buy 20 units. If the stockmarket recovered and each unit was valued at £1 again, you would have 20 units instead of 10.
In addition to the investment misconception, the people surveyed also believed the advice needed to be able to invest would make an expensive barrier for them.
At we aim to simplify the money maze and help to enable investors to receive cost effective guidance and advice, if you need it. The costs for our recently launched Ask An Adviser service start at just £9.99 and can provide you with written guidance on investment matters within 48 hours. This eliminates the need for meeting an adviser face to face and the worry of being pressurised into buying.
Obviously, face to face contact and individual, discounted, bespoke advice can be provided if you need it.