What is pound cost averaging?

Pound cost averaging, also known as drip-feed investing, is a strategy where you invest a fixed amount regularly, such as monthly, rather than all at once. This approach helps smooth out market volatility by buying at different price points over time. It reduces the risk of poor market timing and encourages disciplined, long-term investing. While it doesn’t eliminate investment risk, it could help you avoid emotional decisions and build good financial habits.