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Easy – it just means investing regularly. You might add a bit of money to your investment fund every now and then. Or you might pay a lump sum into your fund once a year. Both are good options, but many people prefer open an investment account and set up a regular Direct Debit to top up their investment after payday each month.

Why might it be a good idea to open an investment account and invest regularly?

Share prices go up and down. Naturally, the best time to invest is when prices are low so you benefit when they rise. However, ‘timing the market’ like this can be tricky.

One way to reduce the worry of when to invest is by investing regularly. This way, although you may catch some falls in prices you also can catch those rises too. This is sometimes called ‘pound cost averaging’. We prefer to call it ‘smoothing out the bumps’.

Why smooth out the bumps?

Investing regularly helps smooth out the normal ups and downs of your investments, by averaging out the price you pay. Sometimes, you’ll invest when prices are up. That means you’ll get fewer shares or units for your money. At other times, you’ll invest when prices have fallen, you’ll then be able to buy more of shares or units for your money and benefit if prices rise again.

Three reasons to open an investment account and choose regular investing

Up and running in no time. You don’t need to save up a lump sum, you just put away a little each month.

Super easy to manage. You just set-up a monthly Direct Debit, then expert fund managers do all the hard work.

You could earn more than lump sum investing. History shows that ‘regular investing’ like this tends to make more money than ‘lump sum’ investing, over the longer term.

To find out how regular investing could benefit you try our calculator.

Live a life more Virgin

We make everything super simple for you, so it’s easy to choose the investment approach that you feel most comfortable with. You can start investing with us for the price of a monthly takeaway for two, then we get to work to make sure you get great value.

Want to know more about investing? Read our beginner’s guide.

If you already have an investment or pension with us, it’s easy to set up regular monthly payments by signing into Online Service.

We hope the information in this article is useful, but it isn't financial, personal or tax advice. If you want expert advice, you should speak to an Independent Financial Advisor. Remember, the value of investments can go up and down, so you may get back less money than you put in.

You should think of investing as a medium to long-term commitment – so be prepared to invest your money for at least five years. Tax depends on your individual circumstances and the regulations may change in the future.

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