Lump sum investment

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Q: Would you recommend putting a lump sum into a funds shares ISA at the moment with the current financial turmoil going on? Or would you say drip feeding it over a few years could prove more profitable when taking at least a 10 year view? Cheers

A: I think that you should invest when the money is available rather than try to time the market. Doing that has been compared to trying to catch a falling knife. You will only know at a later stage whether you should have fully invested or drip-fed, by when it's too late! The important thing is to have some short-term emergency money, so that you do not have to dip into your medium-term, shares-based investments. Then you invest over a wide variety of different types of assets, which should meet your objectives. One of the benefits of the Internet is that Independent Financial Advisers can now access powerful allocation tools, previously only available to Fund Managers. So do make use of these advances in technology, which help answer some of your concerns.

Answered by:

Paul White
IFA
Belgravia Insurance Consultants