Savings plan vs lump sum: which wins?

If you have a larger amount, should you invest it all at once or spread it out via a savings plan?

• Lump sum usually wins on average, because markets rise more often than they fall, so more time in the market beats waiting.
• Spreading it out (cost averaging) reduces the risk of buying right before a dip – it buys peace of mind, not higher expected return.

Test both for your numbers in the savings-plan calculator: a monthly rate over your horizon, and compare against a one-off starting capital.

Practical takeaway

Getting started matters more than the perfect method. If a lump sum makes you nervous, splitting it over 6–12 months is a reasonable compromise.

Information only, not investment advice.