Dollar -Cost-Averaging (DCA)

What is it?

[{"selector":"#anim-cdd5d29a-d923-4a9d-9e23-bd44bc0d0963","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-04adbff6-0115-4a48-a08f-0b141170ab68","keyframes":{"transform":["translate3d(-124.36364%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-813442e6-db4d-4d35-abc5-7f1e4a125caf","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4581696e-5f14-44ef-bb92-4ed282369eae","keyframes":{"transform":["translate3d(-114.8265%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Benefits

[{"selector":"#anim-96b35fff-2bd1-4d75-a9c5-ea14d52bca9d","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-379aa59e-dd45-4a59-a4e5-cf0e36bc6a5f","keyframes":{"transform":["translate3d(0px, -365.23311%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9f7951e1-82ba-49f0-87df-a5b840864843","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f8de06a-8e8f-448b-8a4c-fd5108239a7d","keyframes":{"transform":["translate3d(-135%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c4ee61d5-3a80-4eb8-9d44-853c80197fc8","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fc18a939-665b-4081-a586-0a8d1b90f9c9","keyframes":{"transform":["translate3d(-135%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ecffa720-d915-46aa-a772-457a4724433e","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-398e7238-8738-4899-a7d7-0acae26ca59f","keyframes":{"transform":["translate3d(-127.02702%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dea5a0e2-04fb-41d0-815e-f520e2f47023","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9d0dcff5-0b12-4748-ba32-6a38f23efa88","keyframes":{"transform":["translate3d(-126.19926%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-803382f1-bcca-4268-9c78-723c909b2e18","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f3f57f6e-151b-4bc9-b128-dab51dd5c794","keyframes":{"transform":["translate3d(-125.83026%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Reduces Risk Investor Discipline Help You Lower Your Cost Basis Reduce Emotional Biases Less Focus on Short-Term Market Volatility

Disadvantages

[{"selector":"#anim-8fd5a3fb-3b02-4e1f-b505-d682510967cb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] A More Conservative Approach Investors May Forfeit Higher Returns There may be oppurtunity cost

Comparing Performances of DCA to Lump Sum Investing

[{"selector":"#anim-af624be0-2b44-45a5-ad9d-6667375d61d0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.227102119164247%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":5000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] DCA works better for six to twelve months, whereas lump sum investing works better with large windfalls Learn more

More stories

[{"selector":"#anim-e82eb99f-2cd3-476d-b6d7-f61d0cbe81e5","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d209867d-5c32-4b0a-87ea-96d57dd73c0d","keyframes":{"transform":["translate3d(-130.55556%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c59a32a0-45ba-45ab-814f-9dcc929623a8","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-978f695f-aaee-4e2e-9969-e09d1826e897","keyframes":{"transform":["translate3d(-130.55556%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-11d84dc2-42ec-4f5a-ae20-46d94ab1a697","keyframes":{"opacity":[0,1]},"delay":800,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-70bddba9-375d-4f06-9aae-78977988ed19","keyframes":{"transform":["translate3d(-130.55556%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":800,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f18a2d33-144e-466b-b3fc-721e27b7834f","keyframes":{"opacity":[0,1]},"delay":1105,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3b33822d-e6e4-4248-804a-50b709765b77","keyframes":{"transform":["translate3d(-130.55556%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1105,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d227b078-d257-4278-aa9f-6c70383e4197","keyframes":{"opacity":[0,1]},"delay":350,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f3b8c300-8cb4-4f12-a544-b729c0be0603","keyframes":{"transform":["translate3d(-200%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":350,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dc942503-4062-47ba-ba6c-783456dacc6e","keyframes":{"opacity":[0,1]},"delay":645,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c4e95908-8e09-4d96-a328-2d11771b9817","keyframes":{"transform":["translate3d(-182.52428%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":645,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-47324728-29c5-4134-9ec0-6721efefc673","keyframes":{"opacity":[0,1]},"delay":950,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dc1b6764-fbfb-4d87-b2f2-ce28443df6e9","keyframes":{"transform":["translate3d(-189.00525%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":950,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aee52100-d80f-40a1-b04f-b2ef5b1defd1","keyframes":{"opacity":[0,1]},"delay":1250,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e635a43d-bc8f-4d35-9ba3-5f033e54c67f","keyframes":{"transform":["translate3d(-188.48169%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1250,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 12 Easy Steps to Financial Freedom Why You Should Start a Business in 2022 Blended Family Challenges 5 Money Saving Challenges