Dollar Cost Averaging (DCA) is an investment strategy where a fixed amount of money is invested into a specific asset such as a stock, ETF, or mutual fund at regular intervals, regardless of the asset's current price. This results in buying more units when prices are low and fewer when prices are high, potentially reducing the average cost per unit over time compared to a single lump-sum investment made at a market peak. DCA removes the psychological burden of trying to time the market and instils disciplined, consistent investing behaviour. In India, Systematic Investment Plans (SIPs) in mutual funds are the most widely adopted and accessible form of DCA, through which millions of retail investors build long-term equity wealth without needing to predict market movements.
For android only
