Investors turn to regular savings in volatile markets

Investors are choosing to save regularly due to recent market volatility, a survey has revealed.

The research, from Legal & General found that 48 per cent of investors are currently opting
to invest monthly rather than on a lump sum basis. This is compared to 2010, when just 12
per cent were saving regularly.

The reasons, according Legal & General, could be due to a desire to drip feed monies, or
simply due to a lack of lump sum funds. Whatever the reasons, drip feeding can help to
mitigate risk, says Legal & General.

Commenting, Simon Ellis, Managing Director, Legal & General Investments, said:

"The current markets have been challenging and difficult to predict. Investors are rightly
amending their investment strategies to cater to this environment and saving regularly is a
good habit to get into. Adopting a pound cost averaging approach - that is to say, investing
the same amount each month - is a considered approach and it is interesting to see that the
percentage of investors doing this has gone up fourfold since 2010.

"As always, regardless of the state of the market, the best way to safeguard against volatility
is to develop a balanced portfolio so exposure is spread across sectors and asset classes."