Plain-English definitions, reviewed by an independent investor
Lump-Sum Investing
Lump-sum investing puts all the capital to work at once, capturing the market immediately.
Lump-sum investing puts all the capital to work at once, capturing the market immediately.
(All capital invested at one time)
Why it matters
It usually beats drip-feeding in rising markets by giving time in early.
Common confusion
It risks bad timing if a drop hits right after you invest.
Frequently Asked Questions
Lump sum vs DCA?
Lump sum wins on average in up markets; DCA sleeps better.
When prefer lump sum?
When markets are calm and you have a long horizon.