Lump Sum or DCA

Lump Sum outperformed DCA 68% of the time across global markets measured after one year. However DCA was still better than remaining completely in cash as it outperformed cash 69% of the time.

Lump Sum in most cases yielded greater wealth after one year, but also greater losses in some of the worst market environments.

DCA is better for risk averse investors because some might find value in taking a slower path to portfolio growth if it helps to avoid big losses

It is still best to minimize opportunity costs by keeping a relatively short DCA period such as three months.

The longer the DCA period the greater the opportunity costs incurred and the greater Lump sum performance advantage over DCA