Don’t delay: Why it pays to get your investments in order this January

6th January 2015

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Sticking to your New Year’s resolutions and getting your investment portfolio in order this January could make you thousands of pounds better off than those who leave it late in the day, new calculations reveal.

Analysis by Fidelity Personal Investing show that investors who get their affairs in order at the very start of the every year made an extra £10,000 over 15 years compared to those who dallied until the end of the financial year in April.

Based on the performance of the FTSE All Share Index, those who invested £1,000 every January since 2000 could now have an investment pot of nearly £35,500. This is over £10,000 more than those who invested the same amount every December– their investments would be worth just over £25,000.

Tom Stevenson, investment director at Fidelity Personal Investing, said: “This research shows the importance of time in the market. Despite investing exactly the same amount of money over the years, those who invested early were more than £10,000 better off. Investing earlier rather than later in the year gives your money more time to grow in the market over the long run.

“The perks of being an early-bird investor are clear and investors should act quickly to take advantage of the power of compounding on their portfolios. The longer the investment, the greater the impact of compounding will be. For many, the start of the year is a chance to organise their financial affairs for the following 12 months; making your investments a priority will pay off significantly over time.”

 

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