When is the right time to invest?
"If I'd invested six months ago..."
"What if I invest tomorrow and everything drops next week?"
Sound familiar? One of the biggest questions people ask before investing is when the right time is.
The truth is, nobody knows.
Markets react to everything from interest rates and inflation to global events and company news. Even professional investors with teams of analysts and mountains of data can’t predict the perfect moment to buy.
Time in the market matters
Waiting for the "right" time can feel sensible, but markets don’t send a heads-up before they bounce back. Some of the biggest gains happen when people least expect them, and sitting on the sidelines could mean missing out.
If you’re planning to invest, remember that it’s a long-term commitment: at least five years, but ideally much longer. It’s usually time in the market, not timing the market, that makes the biggest difference. If you’re worried about getting the timing wrong, you could consider phasing your investments instead.
Invest gradually with phasing
Phasing is an investing approach whereby you spread your money into the market over time, rather than investing it all at once. Think of it like moving into a new home. You don’t unpack every box on day one. You settle in gradually, room by room. Investing can work in a similar way. Instead of investing a lump sum all at once, you can invest part of it now and phase the rest into the market over time.
For example:
Let’s say you’ve got £12,000 ready to invest.
You decide to invest £6,000 today
Then you drip-feed the remaining £6,000 over the next 12 months
If markets fall during that time, you’ll be buying at lower prices along the way. If markets rise, some of your money is already invested and has the chance to grow.
Remember, investments can fall as well as rise in value, so you could get back less than you invest.
Investing is about consistency, not perfection
It’s easy to focus on market timing and not enough on why you’re investing in the first place.
Trying to react to every market movement can make investing feel overwhelming. Instead, focus on the things you can control:
How much you invest
How regularly you invest
How long you give your money to grow
Whether your investments match your goals and attitude to risk
Get started with our investment ideas
If you’re ready to start phasing your money into the market, our Wealth Shortlist or expertly managed Ready-Made options could be a good place to begin.
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How to build a balanced portfolio
Learn how having a mix of investments can help you build a portfolio that's prepared for the ups and downs of the market.
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This isn’t personal advice. If you’re not sure whether investing is right for you, please ask us for advice.