The Legal & General Group is responsible for investing £413 billion worldwide on behalf of investors, policyholders and shareholders.
The last few years have been a turbulent time in the equity markets, but that doesn’t necessarily mean you shouldn’t invest in equities. Regular monthly investments into an ISA or unit trust can help to reduce some of the risk by taking the guesswork out of when to invest and averaging out the cost of buying your units.
Making regular monthly investments can mean you benefit from what’s known as ‘pound cost averaging’.
The key point to investing this way is that when prices are high your monthly contribution may buy fewer units but when prices are low your contribution buys more units. This tends to average out the price you've paid for your units over the long term and creates a regular savings habit.
Below is a graph that shows the value of a £100 regular monthly investment versus a regular yearly £1,200 lump sum investment into the Legal & General UK Index Trust. This five year period includes the height of the credit crisis when markets were hugely volatile.
|Dec 07 to|
|Dec 08 to|
|Dec 09 to|
|Dec 10 to|
|Dec 11 to|
|£100 monthly investment||£1,095||£2,864||£4,610||£5,544||£7,386|
|£1,200 annual investment||£2,046||£3,843||£5,593||£6,508||£7,308|
Source: Lipper. The table and graph above show the annual performance of the investment in the fund over five years, as at 31 December 2012. They take into account the annual management charge and extra expenses, and assume net income is reinvested. Both the monthly and yearly investments began in December 2007.
Past performance is not a guide to future performance.
There are a couple of ways that you can invest regular monthly amounts in a Legal & General fund:
|Phased investment funds*|
|UK Index Trust|
UK 100 Index Trust
European Index Trust
US Index Trust
Global Emerging Markets Index Fund
|Japan Index Trust|
Pacific Index Trust
Global 100 Index Trust
Global Technology Index Trust
Global Health and Pharmaceuticals Index Trust
*Each trust has its own individual risks detailed in the individual 'Key Investor Information' documents. More general information can be found in ' Additional fund information document (PDF:655KB) ' and ' A guide to investing with us (PDF:812KB) '. Before you decide to invest you must read these documents.
We're one of the UK's largest providers of index-tracker investments.
If you haven’t made use of your full ISA allowance for this tax year, you can top-up with a lump sum or increase your direct debit online, by phone or by post.
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