You Can Make the Most of Your Strategy With These Simple Techniques

Systematic investing

One of the easiest and surest ways to get started is to "pay yourself first" and invest a set amount on a regular basis through a Systematic Investment Plan* with the MTB Funds. Regular investing helps you take advantage of a simple concept called dollar-cost averaging,** in which a set amount invested buys more shares when share prices are low, and fewer shares when prices are high. As a result, your average cost per share is lower than the average price per share.

Dollar-cost averaging

Dollar-cost averaging is an easy way to invest with mutual funds. To take advantage of this simple, effective strategy, you invest the same amount in a mutual fund every month or every quarter, year in and year out. As a result, you automatically buy more shares when the price is low, but fewer shares at a higher price. As you can see, in a fluctuating market, the total price you paid for your shares will generally be lower than the average market price.

Jan 1 Feb 1 Mar 1 Apr 1 Share Price $10 $20 $5 $10 Amount Invested $10 $10 $10 $10 Shares Purchased 1 .5 2 1 Average market price per share: $45/4 = $11.25 Average price you paid per share: $40 invested/4.5 shares = $8.88 This hypothetical example is for illustrative purposes only.

* Systematic investing does not assure a profit or protect against loss in declining markets.
**Because dollar-cost averaging involves continuous investment regardless of fluctuating price levels, investors should consider their financial ability to continue purchases during periods of low price levels.

Compounding

Compounding is a simple strategy that can help magnify results by reinvesting investment earnings. Just look at how an initial one-time investment of $10,000 can grow to $46,661 in 20 years through compounding.

This hypothetical investment scenario is for illustration only and is not indicative of past or future performance of any particular investment. All earnings are reinvested. Actual returns and principal value will vary and would be reduced by any applicable taxes.

Want to find out how many years it can take for an investment to double in value?
The "Rule of 72" calculator can give you the answer.
(It’s called the Rule of 72 because at a rate of 10%, money will double every 7.2 years.*)

*This rate is used for illustrative purposes only. Actual returns and principal value will fluctuate.