What is dollar-cost averaging?
Dollar-cost averaging is a popular investing strategy. See how it reduces risk and lowers your costs.
Why are mortgages so expensive in Canada?
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Ratehub.ca
Dollar-cost averaging (DCA) is the practice of investing equal amounts of money at regular intervals (say, every month or quarter) instead of a lump sum less often (say, once a year—like right before the RRSP contribution deadline).
By spreading out your investment into increments, you can lower the average cost you pay per unit of a stock, mutual fund or exchange-traded fund (ETF) and reduce the risk of making an ill-timed investment decision. Dollar-cost averaging can also help you stay disciplined as an investor and avoid making emotional investing decisions.
Example: “Fumiko has invested $100 in the same exchange-traded fund every month for two years, allowing her to take advantage of dollar-cost averaging.”
Read more about investing:
- How to be a better investor
Staying true to a few basic guidelines can help good investors become great investors. Here are some tips and tools to help you raise your game. - How to stay invested and pick up good quality investments on the cheap
With the markets dropping, is it a time for Canadian investors to buy cheap stocks? Well, let’s see. - The best TFSAs in Canada
Tax-free savings accounts offer a place for your cash or other investments to grow. Here’s help with selecting the best product to match your needs.
- The best RRSP investments
Here are the best accounts to hold your savings and investments.
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