Investing regularly: A reliable way to grow your finances

(This article is NOT investment advice) ‍

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Investing is a proven path to building wealth and financial independence, but not always achieving goals is this straightforward. Markets are unpredictable and finding the right moment to invest can lead to expensive mistakes. The solution is to invest regularly. A simple strategy that offers stability, eliminates emotional decision-making and leverages market fluctuations to your advantage.

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Why is regular investing effective?

Regular investing, also known as dollar-cost averaging, means that you invest a fixed amount at regular intervals, regardless of whether the market is rising or falling. This strategy offers several key advantages:

• Cost Averaging: When the market is down, regular investments allow you to buy more assets at lower prices, which can increase the potential appreciation as the market grows. Vanguard Studies showed that cost averaging reduces the risk of losses in the long run when investing in a volatile environment.
• Elimination of market timing: According to an analysis of the world's largest investment bank J.P. Morgan , 7 of the top 10 days in the market over the past 20 years were recorded within 14 days before or after the 10 biggest slumps. With regular investing, you don't have to try to “guess” the right moment, because you invest on an ongoing basis.
• Psychological benefits: You take the stress out of deciding the perfect time to invest. Instead, you focus on a long-term goal and let your money grow with the market.

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Data confirms the power of regular investing

Let's imagine two investors who deposit CZK 120,000 over the course of ten years. The first invests once, the second regularly for CZK 1,000 per month. In a scenario where the market fluctuates, a regular investor buys assets at different prices, resulting in averaging. The first investor is fully exposed to timing risk — if the market falls immediately, his one-time investment may lose value. The second investor, thanks to a strategy of averaging costs, makes better use of market fluctuations to his advantage.

Historical data from the S&P 500 (1980-2020) show that regular investing during periods of volatility carries a lower risk of loss compared to one-time investments. In addition, investors who invest regularly can maintain greater discipline and benefit from long-term market growth.

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Efficient Investing with Automation

Autoinvest in Investown allows you to set up regular investments in real estate projects, with a minimum of effort.

1. Easy Setup: You choose the amount and frequency of investments, everything else will be arranged by Autoinvest.
2. Without emotional decisions: Automation eliminates the urge to interrupt investing during downturns, when the ideal time to buy is.
3. Flexibility: Autoinvest can be adjusted, suspended or turned off at any time.

You can learn more about Autoinvest hereunder.

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Inspiration: Small steps with big impact

Imagine investing just CZK 1,000 per month for 10 years at an average annual return of 10%. At the end of this period, your investment would have reached a value of almost 200 000 CZK, taking roughly 80 000 CZK would be a net return. The total percentage return over the original invested amount thus amounts to approximately 66%. This yield shows the strength of the compound as the investment grew thanks to compound interest and regular contributions over 10 years.

This example also makes it clear how smaller regular amounts and the compound interest effect can translate into a significant appreciation of your finances even without deeper knowledge of financial markets.

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Start investing regularly today

Investing regularly is an easy and effective way to get closer to your financial goals. With tools like Autoinvest, you can get started right now, regardless of your experience or the size of your budget.

Regularity and automation are effective tools to help you systematically achieve your financial goals.

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