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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Automatic Investing

1 article

Investing Basics

Dollar-Cost Averaging Explained: How It Works and When It Fits

Dollar-cost averaging means investing a fixed amount on a regular schedule, whatever the market is doing. It is how most 401(k) savers already invest. Here is how the math works, how it compares with investing a lump sum, and the trade-offs worth understanding before you automate it.

6 min read