Planning to invest 10k in syfe core balanced portfolio vs syfe Equity100. Which one should I go to? if i were to lump sum 10k inside, could I DCA more money once the target of 10k has reached?

Hi Anon,

Core Balanced and Equity100 are slightly different approaches to investing. The former utilises asset class allocation to achieve decent returns in any market conditions, while the latter adopts an aggressive 100% allocation in stocks to maximise long-term returns. Naturally, Equity100 has a higher risk and will see more volatility. Depending on what you feel more comfortable with, you should pick the portfolio that aligns with you best!

It's never too late to start investing! It will always feel bad to buy in when prices are on an upward trend, but the fact of the matter is that no one can be sure where prices will go from here. It may be a record high as of today, but prices can just continue going up for months on end. If this happens, DCA will feel bad because you keep buying in at higher and higher prices. Of course, the converse may be true, where if you invest lump sum now, prices can plummet over the next few months, so it really depends which makes you feel worse.

If you have some capital set aside for investing already and are investing with the intention of long-term growth, I'd say just invest a lump sum. Don't worry about short-term price fluctuations. Prices will go up in the long run and that's a fact, so there's no need to feel bad even if prices go down next month. You can check out this post about lump-sum investing and DCA!

Hope this helps & all the best!

Regards,

thefrugalstudent

Syfe Core Balanced Portfolio is a mix of 39% equities, 50% bonds, 11% gold, whereas Syfe Equity 100 is obviously 100% equities. As expected, the balanced portfolio has lower average annual return (+6.99%) than that of the equity portfolio (+14.2%). Which portfolio to choose depends on your investment time horizon and risk tolerance.

Yes, you can invest lump sum, and continue to DCA more money.

For long term investing, time in market is more important than timing the market. If you are really worried about the markets at record high, then perhaps don't commit big lump sum, but spread it out via DCA.