I’m sure many of us are familiar with dollar cost averaging. It’s the idea of putting a consistent amount of money over a certain fixed interval into your portfolio regardless of the market movements. The whole idea is to be constantly invested in the market and keep your emotions at bay. Everything moves like clockwork.

Before I proceed further, please do not be mistaken that DCA is actually the best way of investing. It depends on the circumstances. If you have a lump sum to invest, the best way is to still invest your lump sum right now. If your DCA interval stretches beyond 12 months, statistics have shown that you have a higher chance of having lesser returns as compared to lump sum investing. I wrote about this last year, and you might like to check it out here.

However, real-life situations are usually a bit more complicated in