Building returns in volatile times

In times of volatility such as the current market, reinvesting dividends and investing on a regular basis are two approaches that can make a vital difference to investor returns

Whether or not investors needed it, recent events have provided a reminder that stock markets are volatile. There are two important aspects of investing that are often ignored, but which make a vital difference to the returns from equity investment and play a particularly important role in times of market volatility: reinvesting dividends and investing on a regular basis. These fundamental aspects of equity investing can be addressed easily by investing in investment trusts. Reinvesting dividends Equity-market returns come from two components: capital returns - from movement in share pr...