If you’re about to invest a significant lump sum in mutual funds, you may wonder whether you’re better off investing the entire sum at once or investing smaller amounts over time.

It’s actually a widely debated topic in the investment world with no one answer that’s right for everyone.

A key factor is how markets perform in the near term, once you invest. If markets generally climb, then you typically come out ahead by investing the entire amount at once – you bought at a good price and your mutual fund investment increases in value. But if markets generally fall after you invest, investing periodically can win out because you’re buying into the market at lower prices, standing to benefit when the market recovers.