Investment Methods

Dollar-Cost Averaging

Definition

What is Dollar-Cost Averaging?

Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.

Example in practice

Investing $50,000 monthly buys 5,000 units at $10 and 4,000 units at $12.50.

Keep learning

A single, relatively large investment made at one time instead of through repeated contributions.

An arrangement for making scheduled recurring contributions into an investment fund.

The process of buying new units in a fund by submitting money and a valid instruction.

The complete investment result from price changes plus income, assuming distributions are included.

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