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    • Home • Advice • Common questions

    Is it best to put £20k in S&S ISA in a lump sum or to space it out monthly?

    18 March 2021

    Question by Mark

    Is it best to put £20k in S&S ISA in a lump sum or to space it out monthly?

    Answered by

    Hi Mark, Thanks for your question.

    When stock markets are moving up and down it is natural for investors to be concerned that they will ‘get their timing wrong’, investing a lump sum one day only to see share prices fall significantly the next. It is so difficult to successfully time the markets. You might be lucky when you invest a lump sum, but nobody knows what the stock market will do next week, next month or next year. The sharpest falls and the largest gains are often concentrated into short periods of time, so if you try to time the market to avoid the falls, you’re highly likely to miss the gains.

    Taking a long-term view is what matters most. One way to reduce the worry of investing at the wrong time is to invest on a regular basis. By drip-feeding your money into the market you have the potential to buy more units when share prices are falling.

    By saving regularly or phasing a lump sum investment from cash into the market over a number of months it is possible to benefit from the short-term ups and downs and, at the very least, reduce the worry about investing at the wrong time.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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