Lump Sum or Drip Feed Investing - Which Is Best?

If you have a lump-sum to invest then you don't have to put your money into markets in one go. Instead, you can drip feed it from cash into assets in your portfolio. We find out which strategy is best suited to different market conditions, which has performed best historically and the reasons for that outperformance.

This is what else PensionCraft Offers:

Recommended PensionCraft YouTube Playlists

#PensionCraft #LumpSum #DollarCostAveraging

[planum]

Such a great video! I love how academic your content are! High quality and well researched. Thank you!

[jonathanswift]

I think personally I'd go for a combination of both. Invest half of the money immediatly and use the rest to average into the market.

This is because I wouldn't be able to stomach a large drop without having some dry powder left.

Thanks for the informative video!

[kevinu.k.]

I was asking myself this very question today. Cheers!

[VoiceOfThe]

This is really helpful to me at the moment, Ramin. Thank you.

[henryw]

I always get excited when I see you've uploaded a new video. Thank you for making such interesting and insightful videos.

[Andrew-dpkf]

I’m so glad I found this channel. It’s super interesting!

[dsuthapong]

Subscribed!! This is super helpful, clear, and informative ❤ Thank you so much ❤️🙏🏻

[Londonfogey]

Thanks for the interesting video. No gimmicks, music or stupid graphics, just useful information.

[Hekbataneh]

Hi, I liked your study, but have one suggestion. The comparison of outcomes would have been even more interesting if somehow the PE ratio at the market at the time of initiating the investment was considered. I think considering market valuation as a factor, should have addressed another key factor on how the different strategy outcome would have been influenced. This is exactly what you also pointed out in the early part of the video. Thx …

[sidgb]

Thanks for this video it's been really helpful. When it comes to money advice clear level headed advice is what's needed no drama no gimmicks. Keep up the good work :)

[Broatch]

Markets tend to go up which might seem to favour lump sum investing .
But there's often a lot of side-a-ways movement in that gradual uplift.
So it's best to choose a great company and buy its shares in quarterly or half-yearly blocks which should keep the costs down .

[iGladsMusicWorld]

as long as you are in the market, then you are winning than not being in it.

[buckab]

Brilliant topic with great insight. Thanks

[musheopeaus]

That was chuffin' brilliant . I'm a lot more informed now

[GeorgeKaoCommunity]

7:35 it's important to clarify -- by ~2% greater you mean over a 10 year period, not 2% more annualized return... right?

[NathanielSkinnerMusic]

At a time like now, I would definitely like to see how most of those graphs change when you take into account periods of similar equities valuation instead of all periods. My gut tells me it becomes more of a toss up than 66% of the time lump sum wins, but hard data would be better.

[Tomherbs]

I think Ronald Reed drip fed his investments and done extremely well.

[yscsb]

Your videos are really helpfully! Very clearly explained, subscribed!

[mikki]

I'd say there's additional risks as well. Let's say you want to invest a big lump sum ($500k), but you have to save up for it for many months. Then not only are you missing out on gains if the market is bullish, but you also risk that after investing your sum the market crashes, and you need to stay disciplined saving up for that sum and not spend any of it.

[Inbal_Feuchtwanger]

Id be interested to see a comparison between periods of overvaluation. Say look at historical examples of when the S&P has had a P/E of over 20, and then go through the same scenarios. I wouldnt be surprised if dollar cost averaging beats out lump sum in this example.