Investing all your available capital at once.
Statistically, lump sum investing outperforms DCA about 66% to 75% of the time because markets tend to rise over the long term, and your money starts compounding immediately. 2. Tactical Timing: The "Daily Cut-off" Rule Investing in Mutual Funds: What They Are and How They Work
You buy more units when prices are low and fewer when they are high, which can lower your average cost over time (rupee/dollar-cost averaging). when to buy mutual funds
How you buy depends on whether you have a large amount of cash ready or are investing from your monthly salary.
Ideal for most investors as it removes the stress of timing the market. Investing all your available capital at once
If you have a large windfall and a high risk tolerance.
This involves investing a fixed amount at regular intervals (e.g., monthly). Tactical Timing: The "Daily Cut-off" Rule Investing in
When deciding , most financial experts agree that "time in the market" is far more important than "timing the market". While there are technical moments to execute a trade, the best time to start is generally today to maximize the benefits of long-term compounding. 1. The Strategy: Lump Sum vs. Regular Investing