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Dollar-cost averaging is a simple method of investing that could work for anyone.

Putting money aside regularly just makes sense.

Dollar-cost averaging is investing equal amounts of money at regular intervals, usually monthly or quarterly, no matter what the markets are doing. This way you buy more shares when prices are lower and fewer when prices are higher, thereby reducing the average cost of your shares.

Dollar-cost averaging is a simple method of investing that could work for anyone. You should consider it as a long-term investment strategy and only invest amounts that you won't have to withdraw for short-term needs. Dollar-cost averaging entails buying more shares when prices are lower and fewer when prices are higher, thereby reducing the average cost of your shares.We feel that Mutual funds are a good way for investors to apply the dollar-cost averaging technique. Many of the Mutual Fund Companies have automatic investment programs that let you invest as little as $50 monthly, quarterly, or semi-annually.

With dollar-cost averaging, you, the investor, won't need to try to time the market because you're not making your entire investment in one lump sum at the top of the market. You invest little by little. While Systematic Investing does not assure profit nor protect against loss in declining markets, down-turns or dips can be seen as opportunities to buy more shares for less money.

So if you only have a small amount of money a month to invest, dollar-cost averaging is a great opportunity to start saving for your financial future; or if you are concerned that the market is due for a downward correction you can avoid buying shares all at once. Putting money aside regularly just makes sense.

Since Dollar-Cost Averaging requires continuous investment in securities regardless of price fluctuations, an investor should consider his or her financial ability to continue purchases through periods of low price levels.

FESCO Registered Representatives are well prepared to guide your Dollar-Cost Averaging investments.

 

Contact a FESCO Registered Representative for a free "Dollar Cost Averaging" brochure