dollar-cost averaging

Diversification is key for building long-term, sustainable wealth and managing risk. While no single approach is best, using several diversification strategies offers sound protection against portfolio volatility, writes Selfwealth brand and content lead Robert Marfell.

Dollar-cost averaging allows investors to be in the market for the good days as well as the bad. This can help reduce exposure to market declines, as recent research shines light on the difficulty of timing the market.

By following a simple practice known as dollar-cost averaging to buy shares or managed funds, investors can build holdings in assets in a non-emotional and disciplined way.

By following a simple practice known as dollar-cost averaging to buy shares or managed funds, investors can build holdings in assets in a non-emotional and disciplined way. Moreover, it may make good sense when share markets are falling, although it doesn’t work as well when prices are rising, according to some experts.