Interesting, thanks. For point 2 - is there some trade-off from the instalments being spread over time against the time they’re in the market for? On one hand, you have investing £10K in one payment and leaving it for 5 years, and on the other hand investing £2k each year for 5 years. But could there be a middle-ground, some function of the variability and average returns, e.g. spreading the £10k in monthly payments in the first year, then leaving it for the next four, that does better than both extremes?
For point 1 - from very quickly skimming these papers (and as an amateur) it looks like the pound-cost averaging approach is beaten by other more complex approaches, but it still seems to be better than lump-sum. Is that your understanding?
Interesting, thanks. For point 2 - is there some trade-off from the instalments being spread over time against the time they’re in the market for? On one hand, you have investing £10K in one payment and leaving it for 5 years, and on the other hand investing £2k each year for 5 years. But could there be a middle-ground, some function of the variability and average returns, e.g. spreading the £10k in monthly payments in the first year, then leaving it for the next four, that does better than both extremes?
For point 1 - from very quickly skimming these papers (and as an amateur) it looks like the pound-cost averaging approach is beaten by other more complex approaches, but it still seems to be better than lump-sum. Is that your understanding?
Is there a timing approach you’d recommend?