By Paul Feeney, Founder and Chief Executive Officer, Otivo
There's a version of investing that looks like a hawk watching a screen, waiting to pounce at the perfect moment. For most people, that version is a trap. The evidence points the other way, towards investing regularly and then getting on with your life. How often you invest matters, but probably not in the way the hawk imagines. Here's what actually works.
For most investors, investing regularly, such as a set amount each month, works better than trying to time the market. This approach, called dollar-cost averaging, smooths your entry price and builds a habit. As at July 2026, the main practical limit on frequency is brokerage cost, since fixed fees make very frequent small trades inefficient.
Is it better to invest regularly or time the market?
For most people, regularly. Timing the market means trying to buy at the lows and avoid the highs, and doing that consistently is extraordinarily hard, even for professionals. Investing on a regular schedule sidesteps the problem entirely, you invest through the ups and downs rather than trying to predict them. It replaces a guessing game you're likely to lose with a habit you can actually keep, which over time tends to be the better bet.
What is dollar-cost averaging?
Dollar-cost averaging is the practice of investing a fixed amount at regular intervals, regardless of the price on the day. Because the amount is fixed, you automatically buy more units when prices are low and fewer when they're high, which smooths your average purchase price over time. It takes the emotion out of the decision, since you're not agonising over whether today is a good day to buy. For many investors, that discipline is worth more than any clever timing.
How often should you actually invest?
Monthly or quarterly suits most people, often aligned with when they're paid. The right frequency balances two things, the benefit of investing regularly against the cost of trading. Investing every payday builds a strong habit, while spacing trades out a little keeps brokerage costs proportionate. There's no single correct interval, but a steady, sustainable rhythm you'll actually stick to beats an ambitious schedule you abandon after three months.
How do brokerage fees affect how often you invest?
This is the practical brake on frequency. Many brokers charge a fixed fee per trade, so investing very small amounts very often means fees eat a large share of each contribution. Investing in slightly larger parcels, a bit less frequently, keeps those costs proportionate to what you're putting in. It's the same logic as starting out, the fee matters most when the trade is small, so sizing your contributions with brokerage in mind protects your returns.
What about lump sum investing?
Sometimes you have a larger amount to invest at once, from a bonus, a sale or an inheritance. Whether to invest it all at once or spread it out over time is a genuine decision with arguments on both sides, investing sooner puts the money to work earlier, while spreading it out reduces the risk of buying everything just before a fall. Both are valid approaches, and which suits you depends on your comfort with risk. This lump-sum-versus-spreading question is worth a closer look on its own.
Frequently asked questions
Should I invest a lump sum or bit by bit?
Both are valid. Investing a lump sum puts your money to work sooner, while spreading it out through regular contributions reduces the risk of investing everything right before a downturn. Which suits you depends on your comfort with short-term falls.
How often should I buy ETFs?
Monthly or quarterly works well for most people, often timed with payday. The aim is a steady, sustainable rhythm, while keeping brokerage costs proportionate by not trading tiny amounts too frequently.
Does timing the market work?
Consistently timing the market is very difficult, even for professionals. Investing regularly sidesteps the need to predict the highs and lows, which is why it tends to work better for most investors over time.
Where to from here
The best schedule is the one you'll actually keep, and it fits into a wider plan. Otivo, a licensed Australian financial advice platform holding AFSL and Australian Credit Licence No. 485665, offers a retirement planning module that can account for regular investing outside super in your overall position, based on your age, income, balance and goals. It helps you see how a steady habit adds up over time.
Sources
- ASIC MoneySmart — dollar-cost averaging and regular investing — moneysmart.gov.au
- Australian Securities Exchange — investing regularly in ETFs — asx.com.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.