In investment strategies, lump-sum investment and regular fixed investment each have their own advantages and disadvantages. I believe it is crucial to choose the appropriate method based on market conditions and personal financial goals.
Lump-sum investment is suitable for use at market lows or when a specific investment opportunity emerges. If you have a sizable amount of funds and believe that the market has experienced a significant pullback or a particular stock is undervalued, then making a lump-sum investment at this time can take full advantage of short-term price lows, leading to higher returns. However, this method requires good judgment of market trends and entails higher risks, as short-term market fluctuations may temporarily result in investment losses.
Regular fixed investment (such as monthly fixed investment in stocks or funds) is more suitable for long-term investors, especially those who do not want to constantly monitor market fluctuations. Through regular contributions, you can average costs and purchase assets at different prices regardless of market ups and downs, thereby reducing the overall investment risk. This strategy helps to deal with short-term market fluctuations while taking advantage of long-term compounding growth.
In general, I believe that regular fixed investment can be used in uncertain markets, while lump-sum investment may be considered when there is strong confidence in the market or specific stocks. By combining the two reasonably, you can achieve the best returns under different market conditions.