Learn the Lingo: Dip into Investing with Dollar-Cost Averaging


The post-pandemic world is highly aware that future-proofing your life and income is essential. And, it is very clear that investing will play a significant role in your future financial wellbeing. For instance, an investment portfolio can be the difference between the education your child wants versus what you can afford. Meanwhile, some people are realizing that due to inflation, an investment portfolio is vital for achieving dreams like owning a home, world travel, or even a comfortable retirement.

The only problem is, for anyone new to investing, it can be scary to enter a new arena and risk your hard earned money. But, the investment landscape has never before been as easy to enter and navigate. Let’s get started with a simple strategy known as Dollar-cost Averaging (DCA)!

DCA is an investment strategy that can help a newbie investor develop a regular investing habit. It is also a great way to find your comfort range for investing as well as ease your worries about your portfolio during times of economic uncertainty. Risk-averse investors who want the long-term benefits of an investment portfolio will find this type of systematic investment plan very appealing.

How does it work?

DCA is actually quite a straightforward strategy. All you have to do is designate a specific amount of money to be invested at a predetermined time over a set period of weeks or months. The intention is to minimize the risk or the actual financial impact of any volatility in the market.