Why Set Up a Recurring Investment? 👀

Recurring investments, also known as systematic investment plans (SIPs), have gained significant traction in the world of finance and investment in recent years. They offer individuals a convenient and disciplined approach to building their wealth over time. This investment strategy has become increasingly popular among both seasoned investors and newcomers to the financial market. 

A recurring investment refers to an approach to investing a fixed or variable amount of money at regular intervals. On EasyEquities, this can be set up to be monthly, quarterly, or annually, into a chosen investment instrument such as equities (shares), exchange-traded funds (ETFs), bundles, baskets, or unit trusts. This strategy allows investors to take advantage of the benefits of rand cost averaging, which helps mitigate the risks associated with market fluctuations. By consistently contributing funds over an extended period, investors can potentially benefit from the power of compounding returns, thereby fostering long-term wealth creation.

Why set up a recurring investment?  🤔

• Financial Discipline and Regular Investments: Automating investments fosters a habit of regular savings, curbing impulsive decisions and encouraging consistent wealth accumulation over time.
• Mitigation of Market Volatility: Through cost averaging, recurring investments balance out market fluctuations, potentially yielding better long-term returns and reducing overall investment risk.
• Long-Term Wealth Creation: Recurring investments have the potential to harness compounding returns, amplifying overall returns over time and aiding in the efficient achievement of financial goals.

The EasyEquities platform also allows users to adjust their recurring investments and choose when the recurring investment debits one's bank account. This can be done under the recurring investment page, or on a specific instrument in one's EasyEquities account.

When setting up a recurring investment, it's important to understand that one must have sufficient funds in their bank account to ensure a successful debit order and to avoid being charged a fee of R30 per debit order that failed due to insufficient funds, or the recurring investment being cancelled. Other options for recurring investments include debiting from available cash in the EasyEquities account. To learn more about recurring investments, click here or below.