Dollar-cost averaging is breaking up a sum of money into the same amounts and consistently investing them over time. Lump-sum investing is the immediate investment into a security using all available funds. So which approach is best, or is there something entirely different to consider?
References
Brennan, M., Li, F., & Torous, W. 2005. “Dollar-Cost Averaging”. Review of Finance (509-535).
Maggiulli, N. February 25, 2020. “Dollar-Cost Averaging vs. Lump Sum: The Definitive Guide”. Retrieved from: Of Dollars and Data website: https://ofdollarsanddata.com/dollar-cost-averaging-vs-lump-sum/
Panyagometh, K., & Zhu, K. X. 2016. “Dollar-Cost Averaging, Asset Allocation, and Lump-Sum Investing”. The Journal of Wealth Management (75-89).
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