Lump Sum Investing
Lump sum investing means investing all of your available money at once instead of spreading it over time.
1 min read Learning to Invest
What it means
Lump sum investing means investing all of your available money at once instead of spreading it over time. Your money starts compounding immediately, but you're fully exposed to market movements from day one.
Example
You invest a £20,000 inheritance into a global index fund immediately.
Why it matters
It helps you understand the trade-off between investing sooner and reducing investimg timing risk.
Historically, investing earlier has often produced higher returns than waiting, although there's no guarantee.
Should I wait for a market crash first?
Nobody consistently knows when markets will fall, so waiting can mean missing years of growth.