Regular ISA

There are big advantages to saving regularly in an ISA rather than waiting for the year-end before investing a lump sum, says the Daily Mail. Pound cost averaging means a fixed monthly contribution buys more investments at low prices than high prices, which can add substantially to your returns. It’s easy to invest as little as £50 per month and with that minimum also applying to the funds you invest in, you can easily spread your contribution across several different funds. From July, the maximum monthly contribution to an ISA will be £1,250.

There is also the important factor for some investors that establishing a regular savings programme avoids the need to make a difficult “end of year” choice and removes the consequent anxiety over the timing of what could be seen as a significant investment.