FT MarketWatch

Dollar cost averaging

An investment strategy designed to reduce Volatility in which securities, typically mutual Fund, are purchased in fixed dollar amounts at regular Intervals, regardless of what direction the Market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called Constant dollar plan.

Related Terms: 13 Call, Constant dollar plan, ECU, Fund, Intervals, ITS, Mutual fund, Market, NSTA, Purchase, SEC, Unit, Volatility
Other Related Pages: Category: Strategies Starting With: D
Additional Related Terms: 10-K, 12b-1 funds, 401(k) plan, 403(b) plan, 457 plan, Annuity unit, Adjustable rate, Automatic Funds Transfer, Accrual of discount, Accrued market discount
Learn More: Dollar-Cost Averaging — Full Guide, What Is Dollar-Cost Averaging?, Lump Sum or Dollar-Cost Averaging? What Vanguard's Research Found