Dollar-cost averaging

stocks

Dollar-cost averaging is a strategy of making regular incremental investments over a period of time instead of a one-off lump sum investment. This involves a continuous investment of the same amount of money into the same fund, usually at a fixed monthly, quarterly, or annually rate - regardless of the investment’s ever-changing price levels.

Example

Every month, Stacey decides to invest $100 in the ‘x’ share fund.

Stacey’s average purchase price is $10.54 (600/57).

The average price of the fund for six months was $13.75.

Benefits

Consequences

If you would like more information regarding the dollar-cost averaging strategy, please contact Wagtail Wealth today.

IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.

← Back to Blog