Periodic investing

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Periodic investing

Are you looking for a way to invest in a consistent and structured way? Do you want to grow your wealth and achieve financial freedom? Then periodic investing may be the right strategy for you. At Yelza, we are eager to provide you with the expertise necessary to excel in periodic investing.

What is periodic investing?

Periodic investing also known as systematic investing, is a strategy in which you invest a fixed amount of money regularly in financial instruments such as shares, bonds, or mutual funds. Instead of investing a large amount of money all at once, you spread your investments over a longer period. This has several advantages that we will discuss below.

You can invest monthly, biweekly, or even weekly. What you choose is up to your own needs and abilities. This is all easy to set up with your broker. Do you have questions about this? Please contact with our customer service.

Advantages of periodic investing

  • Spreading risk: By investing regularly, you benefit from the so-called "dollar-cost averaging" method. This means that you buy both when prices are high and when they are low. This spreads your risk and reduces the effect of fluctuations in the financial markets.

  • Periodic investing helps you develop discipline as an investor. You set a fixed amount that you can miss regularly and automate your investments. This ensures consistency and prevents impulsive decisions based on short-term market movements.

  • Flexibility and adaptability: With periodic investing, you have the freedom to adjust your investments in response to shifting circumstances. Whether you want to ramp up or scale back your investment amount, you can tailor your approach to align with your financial objectives and current situation. This adaptability makes periodic investing a versatile strategy that caters to the needs of newcomers to investing and seasoned veterans in the financial realm.

  • Compounding effect: By consistently investing and reinvesting your earnings, you harness the power of compounding to grow your wealth exponentially over time. Your wealth grows exponentially over time, as the gains on your investments also generate returns.

  • Dollar-cost averaging: The principle of dollar-cost averaging ensures that, on average, you pay a better price for your investments. You buy more units when prices are low and fewer units when prices are high.

    Potential returns of periodic investing

Although the exact returns of periodic investing depend on several factors, such as the investment instruments chosen and market conditions, this strategy has the potential to generate significant long-term returns. The compounding effect, combined with the fact that you invest at different market levels, can steadily grow your investment portfolio.

It is important to note that investing always involves risk and returns are not guaranteed. It is wise to evaluate your investment goals, risk appetite, and the characteristics of the investment vehicles you choose before you begin periodic investing.

Start periodic investing today

Does periodic investing sound like something for you? Be well-informed before you start.

 

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