Anonymous
Hi, I have a lump sum that I want to put into Stashaway - should I do so in a one-time deposit or DCA over the months?
Lump-sum deposit or DCA into Stashaway? The amount is about 8K. Which method would you use and why? What's the criteria for either DCA or Lump sum investing?
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Victor
24 May 2021
Financial Service Consultant at AIA
DCA is the way
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I would prefer to DCA into stashaway as it takes the emotion out of the picture and you do not have to worry about when to enter the market as you will be buying every month.
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Andy Sim
06 Mar 2020
HR Professional at a Financial Institution
1) Make sure that this 8k is not money that you need in the next 3 years.
2) Depends on which method you believe in, stick to your method. DCA is great if you do not have time to do research or monitor the markets. While lump sum investing works better in an uptrend. You can refer to this article to the pros and cons of DCA to see if this method suits you.
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Generally, DCA does better in a downwards trending market while Lump sum performs better in an upwar...
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Depends on what you're comfortable with and your investing horizon. Historically, lump sum has outperformed DCA over the long term. But DCA helps you stay invested psychologically especially when a crash happens.