Dollar Cost Averaging
In terms of the beginning investor, the mutual fund fees are actually an advantage relative to the commissions on stocks. The reason for this is that the fees are the same, regardless of the amount you invest. Therefore, as long as you meet the minimum requirement to open an account, you can invest as little as $50 or $100 per month in a mutual fund. The term for this is called dollar cost averaging (DCA), and it can be a great way to start investing.
335
652 reads
CURATED FROM
IDEAS CURATED BY
Generalist. Great minds discuss ideas, average minds discuss events, small minds discuss people.
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
How to use storytelling to influence and persuade
How to create a compelling narrative
How to structure your story for maximum impact
Related collections
Similar ideas to Dollar Cost Averaging
Active vs Passive Investing
Active investing strategies means picking your own stocks and building and managing a portfolio. It's hard and few people do it well.
Passive investing strategies mean investing in an index. When indexing, most people like to invest the same dollar amount ...
What is an Index Fund?
An index fund is an investment that tracks a market index, typically made up of stocks or bonds.
Index funds typically invest in all the components that are included in the index they track, and they have fund managers whose job it is to make sure that the index fund performs the same as t...
Smart retirement planning boils down to a few simple truths.
- Time is on your side. The earlier you start saving money, the more time you give compounding to work for you.
- Take risks when you're young. Although stocks are three times more volatile than government bonds, it earns nearly twice the average annual return.
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates