Risk & Portfolio

Dollar-cost averaging

Investing set amounts at regular intervals regardless of price; it does not assure a profit or prevent loss.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

A $100 contribution buys ten shares at $10 and five at $20; the fixed contribution buys fewer shares at higher prices.

IMPORTANT DISTINCTION

Fixed contributions do not guarantee profit or outperform a lump sum; distinguish income arriving over time from cash already available.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — asset allocation and diversification

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