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Robin
09 Feb 2022
Administrator at SG
If you want to lump sum, you may be better off using a brokerage and lump sum into low cost ETFs. Robos charge platform fee of average 0.6% per annum. This amounts to $600 per year of fees for parking your 100k lump sum.
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Lump sum usually gives better returns than DCA. If you have excessive amount have funds sitting in bank and not invested, the returns on that portion is very low.
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I have both! Under the same robo same profile, but enter at different time (1 year apart, DCA first). I would say lump is good if you entered at a low point (but no one can really tell) and/or you intend to hold for a long long long time (ie spare spare cash). DCA is just good discipline to continously invest so that one won't miss the low point(s).
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Robin
24 Jan 2022
Administrator at SG
Robo charges you based on "parking fees" rather than per transaction fees like what brokers do.
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Dca is better to spread the costs over time rather than timing the market and buying only when the market is