Drip-feeding: investing little and often

Drip-feeding means investing a set amount at regular intervals — say monthly — rather than trying to invest a lump sum at the 'right' moment. It's a common, low-stress approach, and it has a name: pound-cost averaging. This is general education, not advice.

How pound-cost averaging works

When you invest the same amount each month, your money automatically buys more units when prices are low and fewer when they're high. Over time that averages out the price you pay, so you're never putting everything in at a single high point. It doesn't guarantee a gain — volatility still means the value moves — but it takes the pressure off timing the market, which very few people do well.

Why regular can help

Waiting for the 'perfect' entry point often means sitting in cash and missing time in the market. A standing order that invests a little each month keeps you consistent without needing to watch prices — and because it's automatic, it's easy to stick with through the ups and downs.

Regular investing manages the timing risk, not the underlying one: the value can still go down as well as up, and you may get back less than you put in. The compounding lesson shows why leaving it invested over years is where the effect adds up. This is general information, not a recommendation.