Dollar cost averaging vs Investing a lump sum?

#1

Hey folks,

I am thinking about investing a lump sum into an index fund tracking the S&P 500? (£10,000)

Is investing a lump sum a good idea? Is there anything I need to consider?

What are the pros/cons of Dollar cost averaging vs Investing a lump sum?

Thanks :slight_smile:

#2

Hi Alex,
Yes investing a lump sum is a good idea. In general the market goes up so you’re better off putting that money in ASAP. You can read more about it here!

Also, you can see for yourself which method performed better based on historical data using a calculator that Jeremy created.

4 Likes
#3

Vivi,

Thank you so much! Your replies and support is really helpful! :slight_smile: Makes sense!