If anyone does have something which has a 200% return a month I will be very interested!
So say I deposited Ā£500, Ā£350 would go to a pie and Ā£150 to manual allocation, Ā£1000 Ā£675:Ā£325. Generally going for a 2:1 split. Pies are an ETF mix and one with common shares like Coca Cola etc.
Then the rest gets manually allocated to another share either in my portfolio or from my watch-list depending on my āarbitraryā decision of if its a good buy in or not. So it doesnāt all necessarily get all invested on pay day but itās almost always invested before my next pay day.
Iām in the fortunate situation where I can invest about 65% of my salary at the moment
I did a daily autoinvest of Ā£11 a day and besides the ridiculous size of my bank statement, I wasnāt seeing a lot of short-term benefit to doing so. perhaps it works well if you are doing more, say Ā£50-100 a day on less positions. its worth noting it will deposit on weekends and you will end up depositing more than your currently 75EUR each week and the bulk, 45EUR will all go in on a monday at market open.
I suppose itās most useful if you are buying shares that see daily price volatility and you want to average your position for security, but on stable stocks with a low beta weekly is probably more than enough for most. I set mine on a wednesday every 2nd week now.
the risk is always there, that since the autoinvest is entirely market orders, the more frequent you do it, the greater the loose change you can end up āoverspendingā on a share, which becomes a sizeable expense to recuperate over time.
mind you I am just going based on my experience of using it, but I found on most days the autoinvest allocation gets caught up during market opening fluctuations, especially the big dump on mondays and so you can end up with slices pausing for longer than normal trying to acquire shares and the price ends up a bit higher, then times this by the number of days in a year that your pie will allocate funds to acquire more shares. itās of negligible influence when just a few transactions happen every month or so, but it adds up when you have a transaction occurring everytime the market opens.
I think my deposit size also played a part as Ā£11 is going to equate to pretty small fractionals everytime. Itās possible to DCA so much that you average out portions of gains that are too small to have a monetary value in your position. It also seems to be easier for the system to try and get fractions like ā0.15ā and ā0.68ā than when an order goes through for ā0.101557ā.
I guess as a āsizeable expenseā, I mean something measurable, like imagine your pie had an invisible management fee like the ETFs do of say 0.05-0.7% except itās not going to any particular place, itās just the margin of profits negated by so many market orders occurring during market open not always guaranteeing you the best entry point.
