Dollar-Cost Averaging (DCA)
Dollar-Cost Averaging (DCA)
Dollar-Cost
Averaging (DCA)
A steady, disciplined way to invest in any market condition.
Dollar-Cost Averaging is an investment strategy where you invest a fixed amount of money at regular intervals—regardless of market price. It reduces the impact of market volatility by spreading out your purchase prices over time.
Dollar-Cost Averaging is an investment strategy where you invest a fixed amount of money at regular intervals—regardless of market price. It reduces the impact of market volatility by spreading out your purchase prices over time.
Instead of investing all your money at once, you can invest a fixed monthly amount. If the market dips, you buy more shares at lower prices.
Instead of investing all your money at once, you can invest a fixed monthly amount. If the market dips, you buy more shares at lower prices.
Dollar-Cost Averaging:
Pros: Reduces risk, adds discipline
Cons: May miss gains if market rises fast
Lump-Sum Investing:
Pros: Potentially more gains if invested early
Cons: Risk of poor timing
Dollar-Cost Averaging is best for long term investors who want to reduce risk and stay consistent.
STRATEGY PROS CONS
Dollar Cost Averaging
Lump-Sum Investing
May miss gains if market rises
fast
Risk of poor timing
Reduces risk, adds discipline
Potentially more gains if invested early
Dollar-Cost Averaging is best for long term investors who want to reduce risk and stay consistent.
Dollar-Cost Averaging:
Pros: Reduces risk, adds discipline
Cons: May miss gains if market rises fast
Lump-Sum Investing:
Pros: Potentially more gains if invested early
Cons: Risk of poor timing
Dollar-Cost Averaging is best for long term investors who want to reduce risk and stay consistent.
