facebookHow do you balance DCA vs time in the market? Let's say I have 30k now ready to be invested? - Seedly

Anonymous

30 Oct 2019

βˆ™

Stocks

How do you balance DCA vs time in the market? Let's say I have 30k now ready to be invested?

Should I jump straight in and risk that I'm going in during a market peak?

Discussion (4)

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Luke Ho

Edited 26 Apr 2022

Founder and Director at CFX Money Maverick Pte Ltd

Overwhelmingly, you don't balance it. DCA works in very short periods.

Even though the annualized yield was smaller on paper, the absolute return was higher. So if your time horizon is long (say, 20 years), you should invest it entirely regardless of the market cycle.

There is an analysis here:

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Which is based on white paper studies from Vanguard.

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Asheesh Chanda

30 Oct 2019

Founder at Kristal.AI

You should start with a balanced portfolio where you hold some low-risk Bond ETFs along with some Equity ETFs and Gold. In the case of Equity Market corrections you can change % allocation to more in eq by redeeming some Bond ETFs. As an example, at kristal.AI we manage this via certain Kristals like All weather Unlevered/Balanced or even Steady Growth etc by proactively rebalancing as our Investment Committee takes the consensus view to rotate the asset allocation. So you can either allocate dynamically yourself or rely on kristal.AI to do so. Do note investments via us are free for up to 50K USD.

Learn more from us here: http://bit.ly/36ci0yF

Elijah Lee

18 Oct 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

We don't know when the market peak is, or if it is even already past. Having said that, y...

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