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What is dollar-cost averaging?

Dollar-cost averaging is a method of investing that can help reduce the risk of timing the market.

The dollar-cost investing method means an investor is regularly buying a specific amount of an investment, allowing them to invest a large sum of money a little bit at a time.

The potential benefit of using this method is that, because prices fluctuate, buying a fixed amount of an investment over a longer period of time can allow an investor to take advantage of the average price of an investment over days, weeks, or months.

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