WEALTH CARE
Dollar-cost averaging, fiscal cliff rundown and american taxes
- Published: 21 Jan 2013 at 00.00
- Newspaper section: Business
I've heard about the dollar-cost averaging (DCA) method. I want to try to invest this way, but I don't really get the idea of how it works. Could you please explain?
- Panida
ANSWER BY... Teera Phutrakul, CFP, Chairman, TFPA When you use DCA, you buy a fixed amount of a particular investment on a regular schedule regardless of the share or unit price. More shares are purchased when prices are low, and fewer shares are bought when prices are high.
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