Periodic investing with the Yelza app

What is Periodic Investing?

Periodic investing, also known as systematic investing, is a strategy where you invest a fixed amount at regular intervals in financial instruments such as stocks, bonds, or mutual funds. Instead of investing a large sum all at once, you spread your investments over a longer period. This strategy has several benefits, which we'll discuss below.

At Yelza, you can invest monthly, bi-weekly, or even weekly. The choice depends on your preferences and capabilities. All of this is easy to set up within the app. Have questions about it? Feel free to contact our customer service.

Benefits of Periodic Investing

• Risk Diversification: By investing regularly, you benefit from the "dollar-cost averaging" method. This means you buy both when prices are high and when they are low, spreading your risk and mitigating the impact of fluctuations in the financial markets.
• Convenience and Discipline: Periodic investing helps you develop discipline as an investor. You set a fixed amount that you can afford to invest regularly and automate your investments. This provides consistency and prevents impulsive decisions based on short-term market movements.
• Flexibility and Adaptability: With periodic investing, you have the flexibility to adjust your investments to changing circumstances. You can increase or decrease the investment amount depending on your financial situation and goals. This makes it a suitable strategy for both novice investors and experienced traders.
• Compounding Effect: By investing regularly and reinvesting your returns, you benefit from the compounding effect. Your wealth grows exponentially over time as the profits on your investments generate further 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

While the exact returns of periodic investing depend on various factors such as chosen investment instruments 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's important to note that investing always carries risks, and returns are not guaranteed. It's wise to assess your investment goals, risk tolerance, and the characteristics of the chosen investment instruments before you start periodic investing.

Start Periodic Investing Today

Does periodic investing sound like something for you? Download the Yelza app today and start building your investment portfolio.

With user-friendly tools and expert advice, we're here to guide you on your investment journey. Begin periodic investing today and take a step towards a financially healthy future.