Things to consider before funding... 🤔

Unsure exactly how to kickstart your investment journey?

Authored on
19 Jan 2024
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Category
Getting started
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Read time
  4 minute read

Should you invest a lump sum or keep it gradual with monthly investing? Fret not! We’re here to guide you through a few simple steps to determine if you're ready to venture into the financial markets. 📈

First things first, take a moment to evaluate your personal financial sitch. It’s a good idea to prioritise paying off any expensive debts and establish an emergency cash fund. Learn more about these essential steps in our Learn centre in the Dodl app. 📲

Once these bases are covered, with Dodl you can dip your toes into investing with as little as £25 a month. It's a manageable entry point that gives you the chance to grow your wealth without breaking the bank.

Should I invest regularly or in a lump sum? 🤔

Ah, the age-old debate. While there’s no right answer, it comes down to your own personal preferences. Some opt to accumulate a sum and invest in one go, while others prefer regular contributions. At Dodl, we believe in flexibility.

Regular investing, say monthly, provides a disciplined approach and can help to smooth out returns (more on this a little later). Many platforms, including Dodl, offer an automated, regular investing service allowing you to start with as little as £25.

Another perk of regular investing is the simplicity it brings to your financial routine. With Dodl, there’s no need to remember to invest each month – it's automated. Think of it as just another utility bill. 💸

What’s more, by consistently investing a set amount over a period of time, regardless of the ups and downs of the market, you buy more shares when prices are low and fewer when they're high. This strategy can help smooth out volatility and help you to stick to a disciplined investment approach.

How much time do I need to spend on investing?

The amount of time you dedicate to investing depends on your chosen approach. If individual stocks pique your interest, be prepared for more research and monitoring. However, if funds are your game, you can leave much of the work to fund managers, requiring less hands-on involvement, just be mindful of the management fee that the fund charges 🧧.

Handling a lump sum

If you have a lump sum ready to invest, that’s awesome. Investing it all at once may be beneficial if markets rise, allowing your money more time to grow. However, no one can predict the markets, so taking the monthly investing route could provide more of a buffer against those unexpected market downturns. 💪

Risk and protection: what you need to know

Investing carries risk and your investments may go down as well as up in value. In the very unlucky event of an investment platform provider going under, the Financial Services Compensation Scheme (FSCS) offers protection up to £85,000 per person, per authorised firm. This coverage is your safety net in the unlikely case your investment provider faces challenges. 😨

In a nutshell 🥜

Navigate the world of investing with Dodl, have the option to invest monthly, as a lump sum or both, and enjoy the peace of mind that comes with FSCS protection. Dodl is your partner in giving your savings the chance to grow – start your journey today! 💸📈

 

Open a Dodl account today

 

🔔 Always remember, the value of your investments can go down as well as up. Dodl doesn’t give advice, so if you’re unsure about investing, it’s always best to speak to a financial adviser.

 


It's important to know

You have to be solely a UK citizen and resident to open an account with Dodl. If you're not solely a UK citizen but still want to invest, you may be able to open an account with our parent platform AJ Bell. 

The past performance of investments isn't an indicator of their future performance and their value can go down as well as up. This means you could get back less than you originally invested. 

Dodl doesn’t offer any advice so if you’re not sure about the risks involved with investing, you should speak to a suitable financial adviser. 

How you're taxed depends on your circumstances, and tax rules can change in future.