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Anonymous
Is there a specific date that you should DCA? Does it depend on what you DCA through? What are some considerations that you should have?
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Pang Zhe Liang
10 Mar 2020
Lead of Research & Solutions at Havend Pte Ltd
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Cost averaging is a good thing, but the modalities not so importatant,
avoid high fees on a relative base (% of lump sum). Monthly is fine
but quarterly is completely o.k.
Don't lose your performance by buying unit trusts or mutual funds,
think passive indexing ETFs instead.
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Elijah Lee
09 Mar 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
I'm going in monthly. However, unlike most people I will just buy at some point during the month. Th...
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There is no optimal frequency for dollar cost averaging. Instead, dollar cost averaging works based on the following three guiding principles:
There is a defined time period on which the investment is made, e.g. 10 periods
The invested capital is the same during each time period, e.g. $1,000 per period
The capital is invested on every defined time period, i.e. no period is skipped or missed
More Details:
Dollar Cost Averaging Singapore: Does it really Work?
Of course, this depends on the volatility of the asset over time. Generally, once a month works fine for me since I am invested for the long term. If you look back upon the three guiding principles, you will realise that the exact date doesn't matter as well.
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