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What is dollar-cost averaging (DCA)? // The Motley Fool Australia

What is dollar-cost averaging (DCA)? // The Motley Fool Australia

If you’re struggling to understand the complexities of investing and want an uncomplicated investment system, look no further than dollar-cost averaging, or DCA. It involves investing consistently with profitable returns over time, despite market fluctuations.

In this article, you’ll learn how to invest like a pro and grow your wealth over time without anxiously analysing the share market daily. You’ll also learn the potential benefits behind dollar-cost averaging, examples of how it is used, and how you can apply this powerful method of investing.

What is dollar-cost averaging?

Dollar-cost averaging is an investment strategy that aims to take the guesswork out of investing. 

Instead of trying to ‘time the market’ by buying shares

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