Investing a fixed sum at regular intervals. This investment technique has two advantages: You don't have to time the market to invest at market lows, and it generally compensates for investments made at market highs.

The strategy of investing a set amount of money on a regular basis, such as monthly or quarterly. By dollar cost averaging, your investment dollars buy fewer shares when prices rise and more shares when prices decline. This can lower the average cost per share, but does not assure a profit or protect against loss in a market decline. Such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities. An investor should consider his/her financial ability to continue his/her purchases through periods of low price levels. [Go to source

A long-term investment plan based on investing fixed dollar amounts at periodic intervals, regardless of fluctuations in the prices of securities.

An investment timing strategy where an investment of a constant amount is made in the same security or mutual fund at regular time intervals, regardless of the market prices or conditions. Also see Example Of Dollar Cost Averaging.

Long-term investment strategy in which you invest a certain number of dollars at regular intervals, such as monthly or quarterly, rather than buying a certain number of shares of securities. When the price is low, your dollars buy more shares and reduce the average price of all of the shares you own. To be profitable, dollar cost averaging depends upon the price at which you eventually sell the securities to be higher than your average share cost. See also DRIP.

A strategy of buying securities (typically mutual funds) in fixed dollar amounts at scheduled intervals, with the aim being to lower the average cost per share over time. Dollar cost averaging does not assure a profit and does not protect against loss in declining markets.

method of purchasing securities by investing a fixed amount of money at set intervals. The investor buys more shares when the price is low and fewer shares when the price is high, thus reducing his or her average cost per share.

A method of investing which involves contributing money regularly in the same investment. The theory assumes that in rising markets, more stocks are bought at a lower price.

Method of accumulating capital by investing equal amounts of money at regular intervals. This attempt to average turbulence allows the purchase of more shares when the trading price is low, and fewer shares when prices rise. The collective shares are bought at an average price rather than at a particular moment when the market could be skewed, thus reducing the need to correctly time the market.

Investment approach involving the purchase of uniform dollar amounts of securities at regular time periods. Allows the investor to purchase more shares when prices are low, and vice versa, in an effort to reach a beneficial total average cost. It does not assure a profit and if an investor sells shares at depressed prices a loss will be incurred. Shares must be purchased consistently.

The strategy of investing a fixed amount of dollars in a specific security at regular intervals, thereby lowering the average cost per share.

With dollar cost averaging, investors contribute a fixed amount on a regular basis. Through this disciplined strategy, investors end up buying more shares when the price is low and fewer shares when the price is high, resulting in a lower cost per unit. This strategy helps investors stay focused on the long term by eliminating the temptation to time the market.

Dollar Cost Averaging is an investing methodology that employs a consistent disciplined approach to investing. With Dollar Cost Averaging, a person sets up a regularly scheduled program of investing a specific amount over time. The strategy can reduce an investor's timing risk. Be aware, however, it does not assure a profit nor protect against loss in declining markets. Since it involves continuous investment regardless of fluctuating price levels, investors should consider their ability to continue purchases through periods of low price levels.

A practice of investing the same amount of money at regular intervals, regardless of the price of the shares at the time of purchase. If the same amount of money is invested each time, typically more shares are bought when the price is low, and fewer when the price is high. This investment strategy cannot assure a profit or protect against a loss in a declining market

In a variable annuity, the investment of a fixed amount of dollars at regular intervals. This is a financial strategy that could, over time, ensure that the average cost per unit will fall below the average price or the market high; however, it does not guarantee profit or guarantee the avoidance of a loss. Investor must invest in securities on a continual basis despite any fluctuation in prices and should assure his or her ability to continue purchasing in times of low prices before using this strategy.

An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. also called constant dollar plan. see also value averaging, periodic payment plan, voluntary accumulation plan.

A method of investing regularly in investment funds to take advantage of volatility in stock prices. The aim is to purchase more fund units through installments than may be possible through lump sum payments.

a method of investing in which a security is purchased in fixed dollar amounts at regular intervals. As the stock price fluctuates, more shares are purchased when the price is low, and less when it is high, enabling an investor to reduce the average cost of the holding.

An investment strategy to invest a fixed amount of money regularly over time by buying more shares as prices go down and fewer shares as prices go up, thereby optimizing the cost per share.

Method of purchasing securities by investing a fixed amount of money at set intervals. The goal of the investor is to purchase more shares when the share price of the fund is lower. Twice-monthly contributions into an IRA is just one example of dollar cost averaging.

the strategy of investing equal amounts of money at regular intervals regardless of whether securities markets are moving up or down. The strategy reduces average share costs to the investor, who acquires more shares in periods of lower securities prices and fewer shares in periods of higher prices.

Investing a fixed dollar amount in regular intervals, such as weekly, monthly, or quarterly, where an investor attempts to purchase stock at an average price and remove emotion and the risks of market timing.

The process of purchasing stocks or mutual funds periodically at different market prices. Over long periods of time, the average cost of your shares tends to be less than the current market price.

Is investing a set amount of money, at regular intervals, over a period of time. This means an investor could gain an advantage from rises and falls in the investment price, buying more when the price is low and less when the price is high, and so reducing the risk of loss.

A method of purchasing assets by investing a fixed amount of dollars at set intervals (such as $100 per month).  This method automatically buys more shares when the prices are down and overall is a very good way to invest.  Most Mutual Fund companies offer this service, though, they may call it something different.

Investing a set amount of money, at regular intervals, over a long period of time. The investor could gain an advantage from rises and falls in the investment prices over a period of time by buying more when the price is low and less when the price is high.

A system of putting equal amounts of money in an investment at regular time intervals to lessen the risk of investing a large amount of money at a particularly inopportune time.

Investment of a fixed amount of money at regular intervals, usually each month. This process results in the purchase of extra shares during market downturns and fewer shares during market upturns. Dollar-cost averaging is based on the belief that the market or a over the long term and that it is not worthwhile (or even possible) to identify intermediate highs and lows.

A method of accumulating assets by investing a fixed amount of dollars in securities and mutual funds at set intervals. The investor buys more shares or mutual fund units when the price is low and fewer shares and mutual fund units when the price is high.

buying a set amount of stock at regular intervals regardless of price

Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing a constant number of shares at set intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high.

A principle of investing which involves purchasing equal amounts for investment at regular intervals with the expectation of reducing the average share cost by purchasing more shares in periods of lower share prices and fewer shares in periods of higher share prices.

The practice of i nvesting equal amounts of money at regular intervals regardless of whether securities markets are moving up or down (also see Automatic Investment, SIP, PIP).

Buying securities at regular intervals with specific and equal dollar amounts. This results in lowering the average price of securities.

A method of investing a regular amount of dollars at set intervals of time, regardless of market fluctuations. The investor buys more shares when the market is low and fewer when the market is high, resulting in an overall cost that is lower than if the investor bought the same number of shares at set intervals.

A method in which an individual invests a fixed amount of money in a security at set intervals. More shares will be purchased when the price is lower and fewer when the price is higher.

The strategy of dividing the investible amount into a number of equal parts and buying at regular intervals to take advantage of lower prices. This strategy is more beneficial in a bear phase.

Investing equal dollar amounts at regular intervals; results in buying more shares when the price is low and fewer shares when the price is high, for an average cost per share lower than the average price per share.

With reference to mutual funds, a system of buying fixed dollar amounts of securities at regular fixed intervals, regardless of the price of shares. The method of purchasing shares gives the investor assurance of an average cost that is generally lower than the average price of all prices at which the securities were purchased.

This is a strategy used by investors to make regular investments of fixed dollar amounts regardless of unit price. The investment will be made when the unit price is low, moderate and high. The investor purchases more units when the price is low and fewer units when the price is high, thus lowering the average cost per unit over time. ()

A method of purchasing assets by investing a fixed amount of dollars at set intervals - such as $100 per month. This method automatically buys more shares when the prices are down and fewer shares when the price is up.

A long term investment strategy that requires investing a fixed amount of money into a security on a regular basis, regardless of whether the price of that security goes up or goes down. As a result, more shares are purchased when the prices are low and fewer shares are bought when prices are high. This approach has two benefits. It removes the problem of predicting future market performance and it makes your investment less vulnerable to market fluctuations. See also Averaging Down.

Systematic purchasing of a specific investment. It provides the investor the benefit of buying more shares when the price of the investment is low, and less when the price is high.

A practice of investing equal amounts of money on a regular basis, regardless of market performance. The objective of dollar cost averaging is to purchase more shares when prices are low, fewer when prices are high, with the net effect of reducing the average cost per share.

An investment strategy based on making investments of equal amounts at regular intervals in the same fund or security. Since the shareholder buys more shares at lower prices and fewer shares at higher prices, the average cost of the shares purchased will generally be lower than the average price over the investment period. However, dollar-cost averaging does not ensure a profit, nor does it protect against a loss in a declining market.

A systematic plan of investing that when used may reduce the overall cost per share/unit of investment. By incrementally investing the same dollar amount over a period of time, an investor automatically purchases more shares/units when the price is lower and less when the price is higher.

This is a strategy of buying securities at regular intervals using a fixed dollar amount over a considerable period of time. This strategy protects the investor against the risk of losing a sum of money invested all at once at an inopportune time

The practice of investing equal amounts of money at regular intervals, regardless of whether the market is moving up or down.

An investment strategy that involves investing a fixed amount in a particular investment at regular intervals, such as putting $1500 into a particular stock or fund each month. The amount you invest remains constant, so you purchase more shares when the price is low and fewer shares when the price is higher.

Investment stragegy of making fixed investments (monthly for example) to a mutual fund.

Dollar Cost Averaging is a long-term investment program that allows you to make regular (monthly, quarterly, semi-annual, or annual) level investments over time. The level investments will purchase more shares when their value is lower and fewer shares when their value is higher. Over time, the cost per share averages out to be less than if all purchases had been made at the highest value and greater than if all purchases had been made at the lowest value. If continued over an extended period of time, the dollar cost averaging method of investment reduces the risk of making purchases only when the price of shares is high. It does not guarantee a profit or protect against a loss.

A formula-investment plan requiring periodic fixed-dollar-amount investments. This practice tends to average the unit cost of an investment over time.

Buying a certain predetermined dollar amount of securities at regular intervals (weekly, monthly). This disciplines investors to buy more shares when prices are low and to buy fewer shares when prices are higher, there by creating an average market cost over time.

Is the practice of purchasing securities at periodic intervals with fixed dollar amounts regardless of market conditions. The investor does not intend to purchase an equal number of shares at each interval.

Investing a fixed dollar amount at regular intervals. When prices are low, your investment purchases more shares. When prices rise, you purchase fewer shares. Over time, the average cost of your shares will usually be lower than the average price of those shares. Such a plan doesn't assure a profit and does not protect against losses in a declining market. However, over longer periods of time it can be an effective means of accumulating shares. The investor should consider his or her ability to continue investing through periods of low market prices.

Investing a set amount regularly means you will buy more units when prices are low, and less units when prices are high. As a result, the actual dollar cost of the total investment will average out over time

A variable annuity investment strategy that involves investing a fixed dollar amount at regular intervals, regardless of market conditions.

Dollar Cost Averaging is an investment strategy in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals over a long period of time, regardless of what direction the market is moving. The result is that more shares of the stock or mutual fund are purchased when prices are relatively low and less are purchased when prices are relatively high. This can result in lower average per share cost over time.

An investment approach used to buy a fixed dollar amount in the same stock or mutual fund on a regular schedule over a long time span. It is designed to reduce the average cost per share because more shares will be bought when the price is down and fewer shares will be bought when the price is up.

entails making regularly scheduled (often automated) investments of a fixed amount, regardless of market conditions. This strategy enables investors to acquire a greater number of units during periods of market weakness, albeit fewer units when the market is advancing.

In a variable annuity or variable life insurance policy, an investment strategy designed to reduce the average price per unit by spreading the allocation of premiums into the Sub-Accounts over a period of time. There is no guarantee, however, that dollar cost averaging will result in profit or protect against loss. You should consider your ability to continue the program through periods of low price levels. Return to Previous

A method of investing that calls for the investment of a set dollar amount at regular intervals, regardless of the fund's share price. As a result, more fund shares are bought when prices are low than at high prices, usually bringing down an investor's average cost per share over time. Dollar cost averaging does not, however, guarantee a profit or protect against a loss.

A method of buying shares at regular intervals regardless of the stock's price. Since you're buying at a range of prices, you effectively average your cost basis.

A long-term strategy, in which, a fixed amount of money is invested on a regular schedule, regardless of market fluctuations. The investor buys more shares of an investment when the price is low and fewer shares when the price is high; the overall cost is lower than it would be if a constant number of shares were bought on a regular schedule. Kembali ke top

An investment method that involves consistently buying at regular intervals equal dollar amounts of a security, rather than a certain number of shares, regardless of the price. As a result, more shares are bought when prices are low than at high prices. Thus, the average cost is less than the average of the prices paid. However, the method does not guarantee a profit. The investor only profits if the sale price exceeds the average cost per share. See: Accumulation; Average Down; Average Up; Dividend Reinvestment Plan; Monthly Investment Plan

An investment strategy that calls for investing a fixed amount of money at set intervals (e.g. monthly or quarterly). With a dollar cost averaging (DCA) program the investor buys more shares when the price is low and fewer shares when the price is high, thus reducing the average cost paid over time. There can be no guarantee that a DCA program will lead to a gain or avoid a loss.

A system of purchasing securities at regular intervals, usually each month, with a fixed dollar amount. This results in the purchase of more shares when prices are low and fewer shares when prices rise.

A system of investing in which the investor buys a fixed dollar amount of securities at regular intervals. The investor thus buys more shares when the price is low and fewer shares when it rises, and the average cost per share is lower than the average price per share. This strategy does not protect against loss in declining markets and involves continuous investments, regardless of fluctuating price levels.

A strategy to help you buy more of a fund when it is low

A system of buying securities at regular intervals, using a fixed amount of cash over a considerable period of time regardless of the prevailing prices of the securities (DCA protects against the risk of losing a sum of money invested all at once at an inopportune time, e.g., right before a price drop.)

A system of buying a fixed dollar amount of securities at regular intervals. The investor thus buys more shares when the price is low and fewer shares when it rises. The average price per share is thus lower than it would have been had the investor periodically bought a fixed number of shares.

Investing equal amounts of money at regular intervals. The money deducted from your paycheck if you participate in your company's 401(k) program is an example of dollar cost averaging. Theoretically, you will buy more shares when the price of your investment has declined, and fewer shares when the price has risen. This may lead to an overall cost basis that is lower than the average price per share.

An investment strategy that involves investing a fixed dollar amount at regular intervals in one or more financial instruments.

An investment plan requiring periodic, usually monthly, fixed dollar amount investments. This plan tends to average out the price of investments over time.

A way to pay lower price per share of an investment by investing the same amount on a regular basis in the same investment vehicle regardless of changes in the price of the shares.

A system of buying securities at regular intervals with a fixed dollar amount. Under this system the investor periodically purchases a certain dollars worth of a security rather than a certain number of shares. If each investment is for the same number of dollars, payments buy more shares when the price is low and fewer when it rises. Thus temporary downswings in price benefit the investor if he continues periodic purchases in both good times and bad. Dollar cost averaging will result in a lower average cost than the average price of the stock.

An investment strategy that involves making regularly scheduled investments regardless of the direction of the market. More shares will be purchased when the price is low and less shares will be purchased when he price is high.

Strategy of making regular investments into a mutual fund and having earnings automatically reinvested. This way, when the share price drops, more shares are bought at lower prices.

A system of buying securities at regular intervals with a fixed dollar amount. Under this system investors buy by the dollars' worth rather than by the number of shares. If each investment is of the same number of dollars, payments buy more shares when the price is low and fewer when it rises. Thus temporary downswings in price benefit investors if they continue periodic purchases in both good times and bad and the price at which the shares are sold is more than their average cost. (See: Formula Investing)

An investment method used in mutual funds by which clients invest the same dollar amount periodically. Because mutual funds permit the buying of fractional shares, all of the investor’s payment is used in the acquisition of fund shares.

An investment strategy whereby you invest the same amount of money at regular intervals, regardless of share price. Dollar cost averaging allows you to buy more shares when prices are lower and fewer when prices are higher, smoothing out fluctuations of the stock market. Remember, however, that this plan does not guarantee a profit or protect against loss and requires investors to determine whether they can continue to invest over the long term.

The strategy of investing a fixed amount of money at regular intervals regardless of financial market movements. The goal is to reduce the average cost per share, since you buy more shares when the price is low and fewer shares when the price is high.

A traditional method of investing that can help reduce your average cost per unit.

The practice of putting a fixed amount of money into an investment account on a regular basis. Does not protect against losses but allows the purchase of more shares when prices are lower and fewer shares when prices are higher. This is a great strategy for a passive investor with a long time horizon.

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

A long-term investment plan based on investing fixed dollar amounts at periodic intervals, regardless of security price fluctuations.

Also known as a "constant dollar plan," dollar cost averaging entails adding a fixed amount of money on a regular basis to an investment account. The advantage to the investor is that he or she is thereby purchasing fewer shares when the share price is high, and more when the price is low. However, dollar cost averaging does not ensure a profit or protect against loss.

investment strategy by which you systematically invest fixed sums of money over time, without regard to the share price at the time. You end up buying more shares when the price is low and fewer when the price is high.

One of the benefits of investing a set amount of money, at regular intervals, over a long period of time. This means an investor could gain an advantage from rises and falls in the investment price, buying more when the price is low and less when the price is high.

A principle of investing which entails the use of equal amounts for investment at regular intervals in the hope of reducing average share cost by acquiring more shares in periods of lower securities prices and fewer shares in periods of higher securities prices.

Adding a fixed amount of money on a regular schedule to an investment, such as a mutual fund or a dividend reinvestment plan (DRIP), is called dollar cost averaging, or a constant dollar plan. Since the share price of the investment fluctuates, you buy fewer shares when the share price is higher and more shares when the price is lower. The advantage of this type of formula investing is that, over time, the average price you pay per share is lower than the actual average price per share. But to get the most from this approach, you have to invest regularly, including during prolonged downturns when the prices of the investment drop. Otherwise you are buying only at the higher prices. Despite its advantages, dollar cost averaging does not guarantee a profit and doesn't protect you from losses in a falling market

Dollar cost averaging is an investment method that enables an investor to accumulate assets by investing a fixed amount of dollars in securities at regular intervals. Because the investor buys more shares when the price is low and fewer shares when the price is high, the overall cost is lower than it would be if a constant number of shares were bought at specific periods of time.

A system of buying mutual fund shares in fixed dollar amounts at regular fixed intervals, regardless of the price of the shares. The investor purchases more shares when prices are low and fewer shares when prices are high, thus lowering the average cost per share over time.

A financial strategy of making investments at regular intervals with a fixed dollar amount. A benefit is that over time, the average per unit cost should be lower than either the market high or the average price. Dollar cost averaging does not guarantee a profit or protect against a loss.

Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time, thereby averaging the cost paid per share.

Dollar cost averaging (DCA) is an investing technique intended to reduce exposure to risk associated with making a single large purchase. According to this technique, shares are purchased in a specific amount on a specified periodic basis (often monthly), regardless of current performance. The theory is that this will lead to greater returns, since smaller numbers of shares will be bought when the cost is high, while larger number of shares will be bought while the cost is low.