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Enhanced Dollar Cost Averaging (EDCA): The Best of Lump Sum Investing and DCA?
By Seedly  •  October 7, 2022
If you’re an investor, you’ve probably heard of Dollar-Cost-Averaging (DCA) and Lump Sum investing. Both of which have their pros and cons. But what if we could take the two and get the best out of both? Source: Giphy Enter Enhanced Dollar Cost Averaging (EDCA), another investment strategy that could optimise your investment returns. Intrigued? Let’s find out more! TL;DR: Enhanced Dollar Cost Averaging (EDCA) – The Best of Lump Sum Investing and DCA? Enhanced Dollar Cost Averaging is essentially investing more money when the market goes down and investing less when the market goes up. The strategy, as proposed by Lee Dunham and Geoffrey C. Friesen, can help investors outperform DCA almost 90% of the time. But, this also means that investors must be aware of the macro environment and will have to spend time researching and also time the market. Uninvested cash will also...
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By Seedly
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
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