Investing Cash: Dollar Cost Averaging vs. Lump Sum
BLOGS|24 Apr 2023
There are many opinions available as to what individuals should do if they […]
Pros | Cons | |
Lump Sum | Historically this has generated slightly higher returns over the long run (see below). | An investor could regret their decision if they experience market losses very soon after investing |
Dollar Cost Average | This can help remove the emotion of investing. It can also reduce the risk of attempting to time purchases. | Dollar cost averaging requires patience and a willingness to commit to the plan. Historically it also tends to underperform relative to going all-in at once. |
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