Money & WorkHow it works

How a savings plan makes price swings work for you.

With a savings plan you invest the same amount every month, say €100. When a share costs €50 you get 2 shares; when it drops to €25 you get 4. You automatically buy more when it's cheap, and the timing decision disappears. With a lump sum, investing immediately usually does better statistically, because markets rise more often than they fall.

Useful: A savings plan is mainly a tool against procrastination and panic, not against losses.

Source: de.wikipedia.org

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