Tuesday, February 10, 2009

SMART INVESTING - THE DCA METHOD





The dollar cost averaging method (DCA) is one popular and effective method during turbulent times. All investors need to do is to invest a fixed sum during regular intervals. This approach will ensure that the investor gets the benefits of cost averaging. When the market drops, investors would be able to purchase more units of the same shares, and when the market improves, they would be able to purchase lesser units. In the Long run, investors will end up with more relatively cheaper units.

This would helps to build up a strong capital base to meet the financial goals in the future.

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