Take the Guesswork out of Investing
With a Dollar Cost Averaging (DCA) strategy, you invest a fixed amount of money at regular intervals, easing your way into the markets and smoothing out the ups and downs of changing prices.
It Pays to Be Disciplined
Let's say you invest $100 every month for 12 months. These charts illustrate how a DCA can help you during rising and volatile markets — a “win-win” situation in both scenarios.
In a rising market environment, your investment is worth $1,819, from 79 units purchased at an average cost of $15.17. That's less than the average unit price of $16.67 over the same time period without using DCA. Over time, you pay less per unit, while your investment continues to grow.
In a more volatile market, you have purchased 244 units at an average cost of $4.93 and your investment is worth $1,949. Over time, your investment value increases using the DCA strategy.