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Invest early in the tax year and compound your wealth

The benefits of investing early really show over time
Invest early in the tax year and compound your wealth
  • Many investors still leave Isa and pension investing until late in the tax year
  • Past performance shows that early-bird investment strategies have proved lucrative over time

Predictably, as the new tax year rolled in, so did the press releases from investment firms spelling out a host of reasons why everybody should invest their 2021/22 individual savings account (Isa) allowance immediately, rather than leave it to next March. If you can afford to invest your Isa allowance at the start of every year, it makes sense that you should to take full advantage of compounding growth. This is because more often than not markets have historically delivered positive returns. 

However, platforms still see a distinct trend of people rushing to invest at the end of the tax year. According to interactive investor, 20 per cent of all of the Isa money it received last tax year came in the final month -between 6 March and 5 April.  

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