I'm planning to invest $50K in Singtel through DBS Vickers. Is it better to invest $50K at once or split it into two tranches of $25K each? What are the pros and cons?

I will try my best not to repeat what other people have mentioned. Please don't just think twice but thrice about your decision in this volatile market.

WHY SINGTEL? How do u see Singtel in 10 years?

There are a lot of other undervalued/ better stocks

I would also highly recommend you to rethink about your portfolio. 50k can do a decent diversification of your portfolio to reduce your risk of losing money. How much can you afford to lose? If you can't stomach the loss, reduce them to counters of 5k to 20k each. Furthermore, reducing the size of investment could potentially jump into opportunities in which you could otherwise do when u put in a lump sum

Now to answer your question between investing lump sums vs 2 tranches.

Assuming you have a bullish outlook of the stock,

pros of lump sum: you profit more by ___?

cons
: you lose more by ___? + how much more do u need to earn back your loss?

pros of splitting into 2 tranches:

• less loss as compared to lump sum (bearish economy)

• more chance to jump into opportunity if the market price is lower than your entry target price

Cons

• I guess you profit lesser

Thus, from this comparison and considerations from Ng Wei En, I believe you can see which is better over another

Firstly, you need to know your investment objective and whether you are invested into the right asset that is capable of long-term goals. Thereafter, you need to ask yourself whether you are able to tolerate short-term volatility.

In essence, one of the difference will be the entry price. By splitting your purchase over two different period, you average the entry price.

Since we won't know how the future price will be like, there is no guarantee that one method is more superior over the over.

More Details:

Lump Sum vs Dollar Cost Averaging

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