Family Office Definition: Dollar Cost Averaging
Dollar Cost Averaging definition: Dollar cost averaging is an investment strategy of smoothing out long term investment returns. A set dollar amount is invested on a regular basis to purchase shares. When share prices are high, fewer shares are purchased with a set dollar amount. When share prices are low, more shares are purchased with a set dollar amount. Over time, the average cost to the investor is lower and returns are not dependent on a large chunk of money invested at one particular time.
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