dollar-cost averaging
Steady investment strategy
Dollar-cost averaging is an investment strategy of buying a fixed dollar amount of an asset at regular intervals regardless of price.
When prices are high, you buy fewer shares; when prices are low, you buy more.
The approach reduces the impact of volatility and removes the temptation to time the market: I put $500 into index funds every month—just dollar-cost averaging.
- steadyFixed, not fluctuating
- savingsAccumulated money kept
- nest eggSaved money for later
- rainy day fundMoney saved for emergencies
- buyingObtaining through payment
buy the dip · finance · investment · strategy · rationality · portfolio · markets · funds · index funds · rebalancing · allocation · mutual funds · diversification · cognitive biases · decision fatigue · risk tolerance · shares · periodic payments