The benefit of using a regular savings plan is that of being able to average into markets and in so doing, actually take advantage of the volatility. Also known as ‘Dollar Cost Averaging’ it is a great way to reduce the risk of equity based or equity linked investments because you are investing over a longer time frame and would continue to buy into markets even as they fall, which can produce a better return than simply buying into a steadily rising one.
As a much longer time period is normally chosen for regular monthly savings than one might choose if investing a lump sum of capital it is also normal to take a more aggressive approach in the early years buying into funds with higher volatility.
Even though we are looking at time periods of ten years plus, the Offshore market still offers great flexibility within the products available. Such investment plans as ‘Quantum’ offer a client the ability to stop and start premiums, reduce or increase the level of contribution and take a premium holiday as their circumstances inevitably change, whilst still offering hundreds of funds to choose from.
The objectives of such investment plans over the long term range from retirement planning through to property purchase and children’s education.
Please contact us with any specific requests.