Typically, investors using a DCA approach will invest equal amounts of money into a stock or mutual
fund at fixed intervals, regardless of how the market is performing.
Not exact matches
A laddered bond strategy — a portfolio of bonds maturing
at various
intervals — or buying a
fixed - income mutual
fund allows more liquidity and diversification.
Depending on the type of investment, you can either contribute to your RRSP early in the year (for
fixed income investments) or
at regular
intervals throughout the year (for most mutual
funds) rather than
at the end of the contribution year — that way, you can benefit from income sheltering and dollar cost averaging (for investments that fluctuate in value).
If you set up a Pre-Authorized Purchase Plan you are investing a
fixed amount to your mutual
fund at regular
intervals.
Dollar - cost averaging is carried out simply by investing a
fixed dollar amount into your mutual
fund (or other investment instrument)
at pre-determined
intervals.
A Systematic Investment Plan is a mode of investment which allows you to invest a
fixed amount of money in any Mutual
Fund scheme
at regular
intervals — for example on a monthly or quarterly basis.
Dollar cost averaging is a method of accumulating shares of stock or a mutual
fund by purchasing a
fixed dollar amount of these securities
at regularly scheduled
intervals over an extended time.
If you want to just pay money you should dollar - cost average invest in index
funds (same amount
at fixed time
intervals no matter how market is doing).