Time diversification benefits investment in funds
The biggest benefit from time diversification can be gained by investing in assets with a highly fluctuating value. Such assets include equities, for example.
When you buy units in equity funds or balanced funds on a regular basis, some of your units will inevitably be bought at a time when their price is high, but the regularity of your investments will ensure that some are bought at the lowest prices.
- Over the long term, you will always buy the fund units at the market price and benefit from any positive developments in the market.
- And you should continue your regular saving when the market experiences a dip.
- Every dip is an opportunity because the same monthly sum will buy you more fund units.