Trustnet Magazine 84 May 2022 | Page 58

Too easy Yet this is of course a gross oversimplification . There is no reason why the current bear market will only last for the same amount of time as the dotcom bubble – and in any Impact of investing £ 100 a month into MSCI World index from 2000 to 2010
YOUR PORTFOLIO Drip-feeding begin investing , which is apparent from the end return – the total sum of £ 6,000 allocated to the market over this time would have only grown to £ 6,821.9 , a compound annual growth rate of 2.6 %. Coincidentally , this is the same compound annual growth rate generated by the IA Targeted Absolute Return sector over the past 10 years . It wasn ’ t launched until 2005 , making exact comparisons difficult . Yet this suggests that even if you begin investing at the peak , drip-feeding into equities will offer the same return as an absolute return fund if you hold on for the medium term .

Too easy Yet this is of course a gross oversimplification . There is no reason why the current bear market will only last for the same amount of time as the dotcom bubble – and in any Impact of investing £ 100 a month into MSCI World index from 2000 to 2010

MSCI World (£ 14,476.00 )
£ 16,000 £ 14,000 £ 12,000 £ 10,000 £ 8,000 £ 6,000 £ 4,000 £ 2,000
£ 0
Sep00
Sep01
Sep02
Sep03
Sep04
Sep05
Sep06
Sep07
Sep08
Sep09
Source : FE Analytics
/ 30 / trustnet . com