What is Pound Cost Average

In the United Kingdom individuals are investing money in to stocks in regular basis for example monthly so they can gather holdings in securities like shares. When the unit’s trust price has changed above or under the shares price then they calculate an average value through out a yearly period.

This means when the price is lower the n the actual share price then it’s better to buy because you get more shares for your money and you should stop buying when unit prices are higher then shares then you’ll be losing money because you get less stock for your invested money. Or in short the pound cost average helps investors to buy stocks when their prices are low and not to waste money when prices are high.