facebookFor the Dollar Cost Averaging Strategy, how often do you purchase? How do you decide on the date? - Seedly

Anonymous

10 Mar 2020

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Stocks

For the Dollar Cost Averaging Strategy, how often do you purchase? How do you decide on the date?

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?

Discussion (5)

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Pang Zhe Liang

10 Mar 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

There is no optimal frequency for dollar cost averaging. Instead, dollar cost averaging works based on the following three guiding principles:

  1. There is a defined time period on which the investment is made, e.g. 10 periods

  2. The invested capital is the same during each time period, e.g. $1,000 per period

  3. 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.

Here is everything about me and what I do best.

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.

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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