Advertisement
Anonymous
Taking into account that there are no transactional fees
2
Discussion (2)
Learn how to style your text
Reply
Save
Aidan Neo
17 Sep 2020
Financial Services Consultant at Manulife Financial Advisers
In this case, I'm hoping you mean $100 every 2 weeks and $200 every 4 weeks for fair comparison.
DCA at a higher frequency helps in a volatile-sensitive environment in terms of capturing opportunities.
However, in a general upwards trend, DCA at a lower frequency or lump sum will perform better.
Either way makes sense as long as it is suitable for your risk appetite; no right or wrong.
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Products
4.7
1296 Reviews
StashAway Simple Guaranteed 3.55% p.a. (Guaranteed rate)
Cash Management
INSTRUMENTS
None
ANNUAL MANAGEMENT FEE
None
MINIMUM INVESTMENT
3.5%
EXPECTED ANNUAL RETURN
Mobile App
PLATFORMS
4.7
486 Reviews
4.5
962 Reviews
Related Posts
Advertisement
The reason to DCA monthly is because most people get paid on a monthly basis. Markets, in general, trend upwards. Therefore, if you are holding on to half of your monthly investment by splitting your investments in two, half of it spends less time in the market.
As far as I am aware, there hasn’t been any substantial evidence to show that DCA works better at 2 week intervals compared to once a month. Thus it’s probably more optimal, and easier, to just do it once a month and forget about it.