Regular investing

For more information on the financial terms used in this page, please consult the glossary.

We believe it's worth taking a fresh look at your investments at least once a year to make sure they still reflect your current situation and needs.

How can regular investing help?

If you can, putting away regular amounts can not only take the hard work out of investing, but can also gradually help you reach your savings goals sooner. The easiest way to make regular contributions to your investment is by Direct Debit. Once you’ve set it up, you can rest easy in the knowledge that you’re adding to the pot on a regular basis, and leaving the whole thing to potentially grow over time.

What is investing by Direct Debit?

When you set up a Direct Debit, you are telling your bank or building society to let an organisation take a fixed amount of money from your account on a set date.

At M&G you can set up a Direct Debit in your ISA or Junior ISA on a monthly basis, and choose the payment date from either the 1st, 10th or 22nd of the month. You can also set up a Direct Debit in The M&G Savings Plan on a monthly, quarterly, six-monthly or annual basis. Please note it takes 13 business days to set up or change a Direct Debit.

Why invest by Direct Debit?

• Simple and convenient way to invest – Once set up, you don’t have to remember to add or top-up your investment, and you can leave it to grow steadily over time.
• You don’t need a lump sum to start investing – It can take time to build up a lump sum. However, you can invest smaller amounts regularly by Direct Debit.
• No need to time the market – You don’t have to worry about timing the market, and knowing when it’s the right time to buy because you will benefit from ‘pound cost averaging’. Pound cost averaging is what happens when you invest a fixed amount at regular intervals, every month for example, regardless of what’s happening in the market. When the price of the shares your money is buying each month goes down, you could get more for your money. Of course, when the price of the shares you’re buying increases, you could get less. But working together, they can help lower the average cost of your regular investments over time.
• They are flexible – You can stop, start, increase or decrease your monthly contributions depending on your situation.

But make sure you keep track of your Direct Debits and that there’s enough money in your account to cover the regular payments.