Dollar cost averaging __________:
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A. B. C. D.D
Dollar cost averaging (DCA) is a strategy of investing a fixed amount of money in a particular asset, usually a stock or a mutual fund, at regular intervals, regardless of the price of the asset. DCA is a disciplined approach to investing that aims to reduce the impact of market volatility on investment returns.
The process of DCA is simple. Instead of investing a lump sum of money in one go, an investor invests a fixed amount of money periodically, say monthly or quarterly, over a period of time. For instance, an investor may decide to invest $500 in a mutual fund every month for the next 12 months.
The idea behind DCA is that the investor buys more shares when the price is low and fewer shares when the price is high. By investing a fixed amount of money at regular intervals, the investor avoids the temptation to time the market and makes investments over the long term.
DCA is not a way to beat the market but rather a way to reduce risk and volatility. It does not require a lot of paperwork, and it is easy to implement. The investor simply