Would it be wiser to regularly invest a portion of your income or to accumulate that portion for a period (e.g. 3-6 months) and invest in lump sum?

Hi anon,

As you have pointed out, lump sum is for someone who has a sufficient amount of capital. Even if you are accumulating over a period of 3 months or 6 months, given the nature of the long term trend of the markets, you are still doing DCA. In fact, RSP can be done quarterly instead of monthly for asset classes such as unit trust.

In the end, the important thing is to choose the right method for your preferences and have the discipline to follow through.

I wrote an extended answer regarding DCA vs lump sum which you can read here:

https://seedly.sg/questions/would-you-recommend...

On Dollar Cost Averaging and Lump Sum Investing:

https://www.morningstar.com.au/learn/article/th...

Like dieting, the best investment plan is the one you can stick to the long term. Most investment plans fail because they are not sustainable. Find which program works best for you which you can stick too, stay disciplined, and the results will follow.