Investment Methods

Automatic Investment

Definition

What is Automatic Investment?

A recurring investment executed automatically from a bank account or cash balance.

Example in practice

₦50,000 moves into an index fund each payday.

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A single, relatively large investment made at one time instead of through repeated contributions.

Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.

An arrangement for making scheduled recurring contributions into an investment fund.

The complete investment result from price changes plus income, assuming distributions are included.

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