Is lump sum or DCA better now given the current market

DCA to spread the risk during the bear market.

DCA for sure. If you want to though, you can set aside some amount as a discretionary fund aside from the DCA fund, that way you have both a DCA fund and a fund whereby you can itchy hands. Chances are your DCA fund will outperform the discretionary fund, but you are welcome to play around and figure out. Cheers.

There can be made a case for both DCA and a lump sum investment right now. Given the market situation, one can make a case for being more aggresive into entering the market right now.

So for example, if you have 100% of your investable cash not already invested in the market. Perhaps you could split it up into 3 tranches, 33.33% each and start entering the market today. And if the market falls another 10%, you enter the second tranche of 33.33% and so on for the third tranche.

Or if you have 100% of the investable cash right now, I'd suggest entering 25% to 50% of it in the market and DCA the other 50% ona monthly basis.

It is difficult to time the bottom, but statistically, when the market goes into a bear market (down 20% from the highs), the returns after 5 years or more tend to be a lot better. So in short, statistically being more aggresive now might be the right move.

DCA is always a better alternative as it is almost impossible to time the market. Hence, lump sum investing may not be a good choice in the current market.

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