Before the period of market volatility I was thinking of investing, should I still do so?
In times of market volatility it is natural to feel cautious. At the time of writing, the cost of purchasing units within an investment is lower than three weeks ago. If it was right for you to invest your money three weeks ago, then continuing that investment means you will be purchasing more units at a cheaper price. If history has anything to go by, the markets will bounce back at some point, which will have a positive impact on the value of your investment.
The alternative is to keep spare cash in the bank, but keeping spare money in a bank account can actually cost you. In recent years we have seen higher rates of inflation and lower rates of interest on cash. The pressure inflation places on cash can be debilitating, at just 2.5% inflation an investor would lose nearly half of their purchasing power over 25 years. This means that £10,000 today would have the purchasing power of £5,394 in 25 years’ time. In the long-run not being invested can actually be riskier than being invested. This information was taken from our article Seven Tips for Investing in Volatile Times.