Comment by Huppie

Heh, I totally agree with you.

I don't know hoe many times I've explained people the given strategy is not what researchers mean when they compare lump sum investing (LSI, a.k.a. converting all cash you have available for investing into equities) and dollar-cost averaging (DCA, a.k.a. splitting the available cash into equal parts and slowly converting the cash into equities at a regular pace.)

What that strategy is is just a regular (e.g. monthly) series of lump sum investments every time cash comes available (e.g. when salary comes in), that people tend to confuse with a DCA strategy.

Having said that: one LSI investment every month is a great strategy that historically does better than any DCA strategy.

ETA:

Relevant research:

- Vanguard Research's Dollar-cost Averaging is Just Taking Risk Later: https://www.passiveinvestingaustralia.com/wp-content/uploads... - PWL Capital / Ben Felix's Dollar Cost Averaging v.s. Lump Sum Investing: https://pwlcapital.com/wp-content/uploads/2024/08/Dollar-Cos...