Interactive Investor

Regular investing at ii up 67% in two years

19th April 2022 15:07

Jemma Jackson from interactive investor

Figures revealed as cost-of-living crisis and market uncertainty bites.

It has been a challenging period for investors, with runaway inflation resulting in the biggest fall in living standards in 70 years. Against this unpredictable backdrop, more and more interactive investor customers have favoured the regular investing approach.

The number of customers investing through interactive investor’s regular investing service grew by 67% in the first quarter of the year (January-March 2022) compared to the same period in 2020, and rose by 19% compared to Q1 2021.

Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “With the biggest fall in living standards since the 1950s and Russia’s invasion of Ukraine taking a psychological and emotion toll as well as a pound and pence hit on personal finances, having a clear and defined investment strategy is crucial.

“Regular investing has grown in popularity on ii over the past two years, with investors seemingly recognising that time in the market, not timing the market, is integral to building wealth over the long term.

“While history has shown that lump sum investing is more lucrative over the long term, drip-feeding cash into investments helps to lower investment risk, smoothing out the inevitable bumps in the market by buying fewer shares when prices are high and more when prices are low – a process known as pound-cost averaging.

“Those who cannot afford to make lump-sum contributions because of the cost-of-living squeeze on budgets can benefit from investing little but often. Making monthly contributions helps you get into a good investing habit, which could help to grow your wealth over the long term while smoothing out daily stock market fluctuations.”

Regular investing bestsellers

Most-bought investments through interactive investor’s regular investing service in Q1 2022 (January – March)

Myron Jobson says: “The top picks among our customers who invest regularly are dominated by seasoned global portfolios, accounting for seven of the top 10 with Scottish Mortgage at the helm, ahead of Fundsmith Equity and Vanguard LifeStrategy 80% Equity - one of three funds from the LifeStrategy stable on the list.

“Whatever your strategy, diversification is the name of the game when it comes to investments, reducing potential risks and increasing potential returns by spreading your investments across different assets."

  • Regular investing is free on interactive investor and can be set up from as little as £25 per month.

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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.