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Anonymous
Lets say you where to invest in syfe or some ETF with a budget of say $800. would you invest $800 in one go or DCA $200/week?
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Syfe
07 Sep 2020
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It’s up to you hehe
I do it annually and monthly!
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Nigel Tan
03 Sep 2020
Executive Senior Financial Planner at Great Eastern Life
The more volatile the market, the higher the need for DCA.
It all depends on how you perceive the ...
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Mathematically speaking, investing a lump sum has historically produced higher long-term returns than dollar cost averaging (DCA).
But the truth is that investing a large sum all at once can be quite nerve-wrecking because nobody knows how the market will behave the next day, week or year. DCA can thus be an effective way to reduce the fear of investing at the wrong time, and ensure that you start investing as soon as you can.
Ultimately, there's no right or wrong answer, though the DCA approach should appeal to investors who aren't comfortable with making a large investment straightaway. Between monthly and weekly DCA, the difference could be slight. It all boils down to what you're more comfortable with.