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Little and often could mean more to ISA investors

Little and often could mean more to ISA investors

Category: Investments

Updated: 14/12/2012
First Published: 14/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
ISA investors who would prefer not to part with a lump sum have been told that making regular payments can be an equally or even more effective way of saving.

Committing to regular saving over the long term, no matter how small the investment, could build a sizeable pot and is a particularly good way to make use of your ISA allowance without having to find a big lump sum of money, according to Fidelity International.

In addition, the provider says that gradually drip-feeding money into a stocks and shares ISA on a monthly basis can have the beneficial effect of smoothing out the impact of stock market fluctuations on the value of investments.

"It is understandable that not all investors will be able to part with the maximum ISA allowance in one go," said Rob Fisher, head of UK personal investments at Fidelity International.

"However, this does not mean that you can't take advantage of the full allowance on a monthly basis.

"The analysis shows that drip-feeding your investments over the course of the year can, in fact, be more beneficial, since it is less affected by market volatility."

All ISA investors are now able to put £10,200 into a stocks and shares ISA.

Following an announcement in the Budget, this figure will rise in line with inflation each tax year from next April.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.