Abrdn’s investment platform Interactive Investor announced that the number of customers investing through its “regular investing” service rose by 19% in the first quarter of the year compared to Q1 of 2021, and grew by 67% compared to the same period in 2020.

The most bought investments through Interactive Investor’s regular investing service in Q1 2022 included Baillie Gifford’s flagship Scottish Mortgage fund and the Dundee-based Alliance Trust.

Myron Jobson, Senior Personal Finance Analyst, Interactive Investor, said: “Regular investing has grown in popularity on ii over the past two years, with investors seemingly recognising that time in the market, not timing the market, is integral to building wealth over the long term.

“While history has shown that lump sum investing is more lucrative over the long-term, drip-feeding cash into investments helps to lower investment risk, smoothing out the inevitable bumps in the market by buying fewer shares when prices are high and more when prices are low – a process known as pound-cost averaging.

“Those who cannot afford to make lump sum contributions because of the cost-of-living squeeze on budgets can benefit from investing little but often.

“Making monthly contributions helps you get into a good investing habit which could help to grow your wealth over the long term while smoothing out daily stock market fluctuations …

“The top picks among our customers who invest regularly are dominated by seasoned global portfolios, accounting for seven of the top 10 with Scottish Mortgage at the helm, ahead of Fundsmith Equity and Vanguard LifeStrategy 80% Equity – one of three funds from the LifeStrategy stable on the list.

“Whatever your strategy, diversification is the name of the game when it comes to investments, reducing potential risks and increasing potential returns by spreading your investments across different assets.”