Drip feed or lump sum
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aroominyork wrote: »Could you expand on this please? What are the periods when phasing is better and how do you identify them?0
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aroominyork wrote: »Could you expand on this please? What are the periods when phasing is better and how do you identify them?
There is no way to know in advance whether phasing will be better or not. You just know that in most periods it will not be but in a small number, it will be.
Only time will tell and only retrospectively.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Deleted_User wrote: »What's an AP fund?0
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Deleted_User wrote: »I have been looking at a European fund and a Chinese fund as well but at present the UK just looks too uncertain (in my opinion).0
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In some cases though, if you invest when funds/shares are relatively high ie. August/September 2018 as I did, then you may have to wait some time for them to get back what you invested. I am still 5% down from these investments at that time. Not complaining just mentioning that drip feeding is sometimes better than lump sum investments especially when markets are high.0
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Agree with coldiron0
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In some cases though, if you invest when funds/shares are relatively high ie. August/September 2018 as I did, then you may have to wait some time for them to get back what you invested. I am still 5% down from these investments at that time. No complaining just mentioning that drip feeding is sometimes better than lump sum investments especially when markets are high.
I'm afraid its still the old saying 'time in the market'. The fund/share price will eventually rise again and hopefully surpass the price you paid when you entered the market. I also topped up my holding in FCIT in September 2018 and paid 730. In the downturn it dropped to around 630 and it is currently around 690 (so still down) but with time and dividend payments I'm not at all worried.0 -
I'm afraid its still the old saying 'time in the market'. The fund/share price will eventually rise again and hopefully surpass the price you paid when you entered the market. I also topped up my holding in FCIT in September 2018 and paid 730. In the downturn it dropped to around 630 and it is currently around 690 (so still down) but with time and dividend payments I'm not at all worried.
Absolutely agree with your comments StellaN, I was just stating that when you make a lump sum investment at a relatively high share price it takes more time to wait to break even and hopefully increase your return on your investment so in some cases drip feeding may be better. By the way FCIT closed at 701 today so your not that far off your original price now and indeed you would have also received a couple of dividend payments during that period.0 -
So, griffin, the statistics say one thing but the psychology can say another. Since we can never predict a downturn and markets historically go up over time, the stats say invest a lump sum at the earliest opportunity. But if I had a large amount to invest now (and knowing my cautious wife would be looking over my shoulder) I would probably invest it in three chunks over six months, so that if the markets fall I would not scream, and if the markets rise I would be making money on at least part of my investments.0
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