Research summary

Why a lump-sum strategy makes sense for most investors

March 15, 2023

History shows that LS outperforms CA on average
LS mostly outperforms CA, but CA still largely beats cash
Three circles compare the historical relative performance of lump-sum investing, cost averaging, and cash. Lump-sum outperforms cost averaging 68% of the time, cost averaging outperforms cash 69% of the time, and lump-sum outperforms cash 70% of the time.
Is CA preferable for risk-averse investors?
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Megan Finlay
Josef Zorn
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