Lump Sum Investment

Because markets rise more often than they fall, a lump sum has historically outperformed staggered investing on average — the money is invested for longer. The counter-argument is not about expected return but about regret: an investor who commits everything just before a 30% fall may abandon the plan entirely, which costs far more than the staggering would have. The correct choice therefore depends on the sum's size relative to total wealth and on the investor's demonstrated behaviour in a decline. Splitting the difference through an STP over six to twelve months is the common compromise.