An investor can make money when markets
are going down!
Is this true? Well yes it is!

A major benefit of regular investing is using market volatility to its best advantage. To say that a regular investor can make money when markets are going down seems an odd statement to make and not true! This can be confusing so we’ll try and make it as simple as possible.

The successful way to regular investing is to buy as many units in a fund as possible over a period of time and sell them when they are at their highest price.

By investing regularly or ‘buying the market’ you average the unit prices over a period of time. See the example below.

How does Dollar Cost Averaging work?

As a regular investor you can take advantage of market fluctuations and even depressed market conditions. This is known as ‘buying the market’. The charts below show two examples of different market conditions and their effects on the value of the investment. On the left is a typical rising market where there is consistent growth. On the right is an up and down market.
With this example we base the figures on a quarterly premium of US$1,000.

This clearly shows the benefit of regular saving.

Disclaimer:
These illustrations are for general information only which was obtained from a reliable source. However TTG, its directors and staff do not accept any liability or responsibility for any errors or omissions and no assurance is given as to its accuracy or suitability. Investing involves risk and past performance is not necessarily a guide to future returns. The value of investment can fall as well as rise and you may not get back the amount original invested. Investors should seek further advice from a professional advisor before relying on this illustration. This is not an offer to invest and no inference should be taken from this.

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