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Investment Ideas: Dollar Cost Averaging by:Teera Phutrakul - Finansa Asset Management Ltd. |
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Dollar cost averaging (DCA) is a technique designed to reduce market risk through the systematic purchase of securities or funds at predetermined intervals and set amounts. Instead of investing all your money in one lump sum, you can invest small amounts over a longer period of time. This spreads the cost basis out over several months/years, providing insulation against changes in market price.
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