An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called constant dollar plan.
Related information about dollar cost averaging:
- Dollar cost averaging - Wikipedia, the free encyclopedia
Dollar cost averaging (DCA) is an investment strategy that may be used with any currency. It takes the form of investing equal monetary amounts regularly and ...
- Dollar-Cost Averaging (DCA) Definition | Investopedia
The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when ...
- Dollar Cost Averaging
Dollar cost averaging is the practice of investing or saving money at specific times, regardless of market conditions or your personal financial outlook. Dollar cost ...
- Downside of dollar-cost averaging - Mar. 28, 2012
Mar 28, 2012 ... Dollar-cost averaging is not an efficient way to invest or reach your desired asset allocation of stocks and bonds.
- The fallacy of dollar-cost averaging - MarketWatch
May 15, 2012 ... Don't believe the hype.This strategy is nothing more than a well-constructed sales pitch. A method for getting people to do what a salesperson ...
- Dollar-Cost Averaging: An Emotional Insurance Policy - NYTimes.com
Feb 21, 2012 ... Even if dollar-cost averaging doesn't necessarily promise better returns, it may make it easier to get a lump sum invested at all given general ...
- Challenging Dollar-Cost Averaging and Other Bad Ideas - NYTimes ...
Sep 30, 2011 ... Some slightly contrarian thoughts that may offer comfort to the long-term investor, when ignoring the wild swings in the market gets difficult.
- Does Dollar Cost Averaging Really Work?
Dollar cost averaging is NOT the way to invest a lump sum. This calculator uses market data to show you why.