Dollar-cost averaging is an investment strategy to help lower the amount you pay for your investments, and manage risk when you’re buying shares in a company or exchange-traded fund (ETF).
How does dollar-cost averaging work?
Dollar-cost averaging is when you invest the same amount of money in a company or fund at regular intervals. Instead of watching share prices tirelessly for months and months to try and calculate the best time to buy, investors who dollar-cost average find a good investment (one they expect to be worth more in the future) and then keep investing in it at regular intervals over a long period of time.
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