I have a lump sum for me to invest into growth products. However, I am quite conservative in investing, and my risk tolerance is low to moderate so I will just do normal etfs and bonds instead of leverage, options or forex, so that I can sleep well during the night. I have made two simple plans that I hope experienced people who have been through high and low in the market can share their thoughts of and give me logical and practical advice, including why they are good or bad plans.
Here is my plan:
The market is still hot and unpredictable, I will do fractional share reinvestment with DCA:
25% SCHG
20% Nvdia (stock) or SMH
20% XLK
20% VT
15% Inda
Then in the future, when the stock market is will drop, I will invest the lump sum into them with the same percentage. And maybe one day, when technology is not the driver of the stock market anymore, I can replace technology ETFs with a new sector.
I understand dropping a lump sum is more effective than DCA, but I don’t have that gut to gamble that my asset won’t be held at highest point when I did the purchase.
Please give me some advice and if you think I should alter my planned portfolio.
