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Anonymous
Is this viable considering the current market climate? or should I wait?
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Alex Chua
08 Jun 2020
Seedly student Ambassador 2020/21 at Seedly
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DCA performs better than lump sum investment in a downwards trending market and it's physiologically easier to manage. If the market prices go down, you get to buy more units at a cheaper price and if the market prices go up you'd be glad that you've bought some in the previous month.
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Yes, the DCA should b done without considering market condition. I can understand the fear when come to this kind of market that everyday u r seeing 5% down n start to doubt yr action. But if u r into this for long term more than 10 years, u will b fine.
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I am shouting "yeah" to such a situation because the robo are unbiased in their analysis and the benefit of DCA is when markets are bad, you can buy more and when markets are gd.,you are not able to buy as much.. You should continue to DCA if u have the means (enough emergency funds, resilient enough to keep invested for 3 to 5 years, will not panic if the portfolio goes downtrend..
Of course, DYODD
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Rais M
08 Mar 2020
Accountant at SME
How did you invest in the robo advisors recently? You sounded like you are looking for a remedy to c...
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Please be reminded and drilled into your head the purpose of DCA.
The downward trend of the market/ portfolio in roboadvisors is to be expected.
The purpose of roboadvisors is to manage your portfolio according to your risk level and remove emotional uncertainty
The purpose of DCA is to maximise your long term returns without any form of bias in the market
So to say, isnt it good for u that u can buy stocks/Etf /unit trust at a DISCOUNT?
What will then be your potential value of your portfolio in the long term ( at least 5 years)