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Invest lump sum in to Investment Trusts

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Comments

  • jimjames
    jimjames Posts: 18,889 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    The Telegraph did some research and trailed a portfolio of investing lump sums at the end of each market crash since the 70's and found this produced better results than drip feeding.

    Cheers fj
    I'm sure it did. Did they explain how you knew when to invest at the end of every crash?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    george4064 wrote: »
    Interesting argument, lump sum vs drip feeding.

    The key difference is that by drip feeding you are missing out on some income than if you invested lump sum.

    Monevator article: http://monevator.com/lump-sum-investing-versus-drip-feeding/

    You also miss out on some of the nervious nellie private investor emotions?
  • What I've decided to do is invest it all at once. The reason I've chosen to do this instead of drip feeding as some have recommended is it's going to be invested for 10 years or more and I just want to forget about it and I've been told the stock goes up and down but in the long term only goes up, so I might catch a bit of a crash but it will go back up again.

    That's god enough for me.

    Thanks a million for all your help though.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As long you wont panic and sell if we hit another downturn soon, fine.

    But too many do.
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