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How can I beat the market in Sri Lanka?

Beating the market at its own game is actually a lot simpler than you might think! However, it is not a question of sitting glued to a computer screen watching share prices like a hawk. All you have to do is invest on a regular basis. Choose how much you want to invest on a monthly basis and stick with it.

When the price of your chosen investment fund or share or bond falls, your fixed sum investment will buy more units or shares or bonds. Of course, when the price rises, your monthly investment will buy fewer units or shares or bonds but the value of the larger number you bought at the lower price will also have risen.

Thus, over time, the average price you will actually have paid to build up your investment will actually be lower than the average market price of the unit or share or bond you are buying over the time you invested in it. This mathematical wrinkle is known as 'pound cost averaging'.

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