Making recurring investments with fidelity can be a great way to steadily build your portfolio over time. By setting up automated transfers on a schedule, you can consistently add to your investments like index funds or ETFs. Fidelity offers easy tools to establish recurring transfers on a weekly, monthly, or customized timeline.
When making recurring investments, it’s key to be disciplined and stick to your planconsistently. Maintaining discipline prevents you from stopping the investments when markets dip temporarily. Staying the course allows compounding to boost your returns over decades. Patience and persistency are vital.
This article provides tips for making regular recurring investments work for you. We’ll cover how to automate transfers, choose assets to invest in, and keep discipline over long periods.
Leverage Fidelity’s automatic investment tools
Fidelity offers easy ways to automate recurring investments on a schedule. You can set up automatic transfers from your bank or Fidelity account to periodically buy into mutual funds, ETFs, stocks, etc. This prevents you from having to manually move money and make each investment purchase. Automation ensures consistency, removing human inertia as a factor. You can customize the frequency and amount for a personalized plan.
Stick to broad index funds or ETFs
When making recurring investments, it’s generally best to stick with broad stock index mutual funds or ETFs. These assets provide instant diversification and exposure to the overall market. Index funds and ETFs remain relatively stable over decades, allowing compounding to work its magic. Other assets like individual stocks carry more company-specific risks. Maintain a long-term mindset instead of chasing hot trends.
Tune out short-term market fluctuations
While disconcerting, try to ignore temporary dips or surges in the market when making recurring investments. Short-term fluctuations are common, but broad index funds mitigate this over long periods. What matters most is consistency and persistence without reacting to volatility. Recurring investments take advantage of dollar cost averaging naturally.
Resist tampering with your investment plan
Stick to the investment plan and timeline you’ve set, even when tempted to change course. Market downturns or your own second-guessing might push you to pause or reduce recurring investments. Avoid giving in, and don’t prematurely stop your strategy. Consistency, patience and an decades-long outlook are vital.
Making recurring investments into index funds or ETFs can be simple with Fidelity’s automation tools. Set up regular automated transfers, then tune out short-term market moves and stick to the plan. Consistency, persistence and discipline will allow compound returns to grow a portfolio over decades.