Dollar Cost Averaging

What is dollar cost averaging?

Dollar cost averaging (DCA) is a regular and disciplined investment program. Rather than trying to time the market, DCA enables you to invest a fixed dollar amount each month.

By investing a fixed dollar amount each month, market fluctuations can work in your favour, allowing you to buy more shares when prices are low and fewer shares when prices are high.

The benefits of DCA include the following:

  • Ability to invest regularly over time rather than one lump sum
  • Available for mutual funds and select stocks
  • All investments appear with a cost basis on one consolidated statement
  • Low minimum investment

We can help

At Edward Jones, we can help you reach your financial goals. Contact your Edward Jones advisor.

Important Information

DCA does not assure a profit and does not protect against loss in declining markets. Such a plan involves continuous investment regardless of fluctuating price levels. You should consider your financial ability to continue purchases in periods of low price levels.

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