This involves investing a fixed amount at regular intervals (e.g., monthly).
Ideal for most investors as it removes the stress of timing the market. when to buy mutual funds
How you buy depends on whether you have a large amount of cash ready or are investing from your monthly salary. This involves investing a fixed amount at regular
Investing all your available capital at once. Investing all your available capital at once
You buy more units when prices are low and fewer when they are high, which can lower your average cost over time (rupee/dollar-cost averaging).
If you have a large windfall and a high risk tolerance.
Statistically, lump sum investing outperforms DCA about 66% to 75% of the time because markets tend to rise over the long term, and your money starts compounding immediately. 2. Tactical Timing: The "Daily Cut-off" Rule Investing in Mutual Funds: What They Are and How They Work