Drip Feed or Lump Sum?

tel_

I have a fixed saver that has just matured, and would like to invest it in my Vanguard Index Funds. 
I was planning to drip-feed (defined as monthly above) all of it, but is it worth dropping a lump some (but not all of it) now, as some funds haven't quite reached what they were back in Jan, Feb of this year?

Of course, we could possibly see prices drop again in the not-too-distant-future, but possibly depositing a partial (probably half) lump sum now is advisable, and drip feeding the rest over 6-12 months sounds sensible? 

As always, the earlier you start investing, the longer your investments have time to grow.

csgohan4

tel_ said:

I have a fixed saver that has just matured, and would like to invest it in my Vanguard Index Funds. 
I was planning to drip-feed (defined as monthly above) all of it, but is it worth dropping a lump some (but not all of it) now, as some funds haven't quite reached what they were back in Jan, Feb of this year?

Of course, we could possibly see prices drop again in the not-too-distant-future, but possibly depositing a partial (probably half) lump sum now is advisable, and drip feeding the rest over 6-12 months sounds sensible? 

As always, the earlier you start investing, the longer your investments have time to grow.

Depends if you can predict the market which noone really can reliably

Interesting article: https://monevator.com/lump-sum-investing-versus-drip-feeding/

gives rationales on lump sum and drip feeding and averaging for drip feed is useful. But you also need to into account potentially entry charges everytime you drip in, which may or may not be relevant depending on the platform/broker your using. 

Personally to cut charges I would go all in at present as the market is nearly at the end of a good beating as you can see the global funds dropping during the start of covid and starting to recover but some not quite to their pre covid levels, so now would be a good time.  

But as I am unsure at present, maybe half now and the other half in 6 months time would be a compromise?

tel_

csgohan4 said:

But as I am unsure at present, maybe half now and the other half in 6 months time would be a compromise?

Well, that's why I was thinking half now & drip-feeding the rest as I normally would.

It would have been nice to drop a lump sum earlier, but as I said, the reg saver unfortunately only matured very recently.