Opinion
Dollar cost averaging: why you should know what it is
When you commit to investing a fixed amount into an investment that varies in price, you buy more when the price is low and less when the price is higher.
Colin LewisContributorThe first half of 2022 was a rollercoaster ride on the markets, with the big sell-off being in June. Since then, share prices have recovered, highlighting that you should never throw logic out the window when investment markets are volatile.
The tax benefits of superannuation plus the risk-mitigation and potential cost-cutting benefits of “dollar cost averaging” mean that sticking with a disciplined contributions strategy remains compelling even when markets are moving against you.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Personal finance
Fetching latest articles