what is DCA?

QUESTION: Ahmad wants to know where the best place is to invest for a first-time investor. He asks Irwan what dollar cost averaging is.?







ANSWER: If you put in RM100 every month or RM 1,000 every month into your mutual fund, sometimes you’re going to be buying more shares because the mutual fund is cheaper. Other times, you’re going to be buying fewer shares because it’s more expensive. You like it going down because you are buying more shares, and you like it going up because the shares are worth more. That’s called dollar cost averaging.