How Dollar-Cost Averaging Stacks Up Against Lump-Sum Investing

When building wealth over time, two primary strategies often take center stage: dollar-cost averaging (DCA) and lump-sum investing. While historical data may favor one approach over the other, the most suitable strategy often comes down to risk tolerance, behavioral discipline, and investment time horizon—not just performance alone.

What Is Dollar-Cost Averaging?

Dollar-cost averaging is the practice of investing a fixed amount at regular intervals—typically into mutual funds, ETFs, or individual stocks—regardless of market conditions. A…

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