facebookHave a lump sum of 100k to invest. Should I invest lump sum or DCA? And how to decide the amount to invest each time in order to minimise brokerage fee? - Seedly

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Anonymous

14 Nov 2020

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Stocks

Have a lump sum of 100k to invest. Should I invest lump sum or DCA? And how to decide the amount to invest each time in order to minimise brokerage fee?

I heard that time in the market is important, so I'm unsure if I should just do lump sum investment? Will it be better to invest one lump sum or DCA? If DCA, how is the frequency?

How should I calculate how much to invest each time too in order to minimise cost? For eg, if min is $10 vs 0.25%, it means I should minimally invest 4k? Anything above 4k is also fine? How to better calculate it?

Discussion (1)

What are your thoughts?

If the funds are intended to remain invested over a medium to long term, then clearly you want to invest them as early as possible and place negligible emphasis on the current price levels as long as markets are not excessively overvalued. This is because equity markets are always upside-bias over the long term whereas its equally possible to be upside or downside-bias over the short term.

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