Investing a fixed dollar amount at regular intervals regardless of price.
Reduces impact of market timing and emotional decisions. Lump-sum investing has historically outperformed DCA on average (markets rise more often than fall), but DCA reduces regret and sequence-of-returns risk.
Investing a fixed dollar amount at regular intervals regardless of price. Reduces impact of market timing and emotional decisions. Lump-sum investing has historically outperformed DCA on average (markets rise more often than fall), but DCA reduces regret and sequence-of-returns risk.
In portfolio, Dollar-Cost Averaging (DCA) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Reduces impact of market timing and emotional decisions. Lump-sum investing has historically outperformed DCA on average (markets rise more often than fall), but DCA reduces regret and sequence-of-returns risk..
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