Lump Sum or DCA?

In my opinion, LSI outshines DCA due to its potential for higher returns. Historical data shows that LSI outperforms DCA approximately 66% of the time, with an average outperformance of 2-4%. This is because LSI maximizes exposure to the market's growth from day one, harnessing the power of compound interest. While LSI requires a significant upfront investment, it eliminates timing risks and emotional decision-making associated with DCA.

DCA, on the other hand, is a more cautious approach suitable for risk-averse investors, those with limited financial resources, or market newcomers. However, spreading investments over time dilutes the potential benefits of compound interest. For those with a solid financial foundation and long-term perspective, I firmly believe LSI is the better choice. Ultimately, the decision depends on individual circumstances and risk tolerance, but for me, LSI's potential rewards outweigh DCA's cautious approach.