Regular investing: why consistency matters

When it comes to investing, it's easy to focus on finding the right moment to invest.  

But investing success comes not from timing the market perfectly, but from developing consistent investing habits and staying invested over a long period of time. As the saying goes, “time in the market beats timing the market”.  

One approach that can help is regular investing — contributing a fixed amount on a regular and consistent basis, regardless of what's happening in markets.  
 

Consistency matters more than perfect timing

Many investors hope to buy when prices are low and avoid investing when prices are high.  

While this sounds sensible, accurately predicting market movements is extremely difficult, and requires investors to make multiple decisions correctly over time. Few investors consistently get these decisions right.  

Instead of trying to predict short-term market movements, many investors focus on what they can control, such as:  

• How much they invest
• How regularly they invest
• How long they stay invested

In 40 years of investing, we’ve found that these behaviours have a greater influence on long-term outcomes than attempting to anticipate market swings.  
 

How regular investing can help

Regular investing offers several potential benefits for long-term investors. 

What could regular investing look like over time? 

Imagine three investors who each start with $50,000 invested in the Australian share market on 30 June 1996, represented by the S&P/ASX 300, with dividends reinvested. We then follow their investments for 30 years to 30 June 2026. 

• Investor A leaves their original $50,000 invested and makes no further contributions. After 30 years, it would have grown to over $672,000.
• Investor B also starts with $50,000, but invests an additional $200 every month. Over 30 years, those regular contributions total $72,000. By June 2026, the investment would be worth over $980,000.
• Investor C contributes the same additional $72,000 as Investor B, but invests it in three larger $24,000 lump sums. In this example, each lump sum is invested at the highest point of its 10-year period. By June 2026, the investment would be worth over $842,000. 
   

Source: Factset 30 June 2026. Illustrative example based on the S&P/ASX 300 with dividends reinvested for the 30 years to 30 June 2026. Past performance is not a reliable indicator of future performance. Actual investment outcomes will vary. The example is for educational purposes only and does not represent an investment recommendation.

The comparison between Investors B and C is the interesting part. Both invest exactly the same amount of money — $122,000 in total — but Investor B spreads their additional investment across 360 months rather than trying to choose when to invest larger amounts. 

In this example, that consistency results in an ending balance over $138,000 higher than Investor C's. 

Of course, no investor knows in advance when markets will be at their highest or lowest. That's the point: regular investing removes the need to get the timing right. Instead, it creates a simple habit of investing over time, through different market conditions. 
 

Regular investing meets ethical investing

Australian Ethical investors invest not only to grow their wealth, but also to support companies, projects and initiatives that contribute to a better future.  

Regular investing supports a long-term mindset by keeping investors focused on their goals, rather than deliberating over when markets will rise and fall – which is unpredictable.  

By investing consistently, investors can continue building their portfolio while supporting businesses and assets aligned with their values.  
 

Setting up a Regular Investment Plan 

If you'd like to make regular investing part of your investment strategy, you can establish a Regular Investment Plan with Australian Ethical.  

You can do this by:

• Logging into the Managed Funds Investor Portal or Mobile app (download it from the Apple or Google Play stores), clicking ‘Add Regular Investment Plan’ and following the prompts.  
• Completing an Additional Investment Application Form.

A Regular Investment Plan can be changed or cancelled if your circumstances change.  

As with any investment decision, it's important to consider your financial objectives, circumstances and needs before deciding whether regular investing is right for you.