Investing Basics•Beginner
What Is Dollar Cost Averaging?
Investing fixed amounts on a schedule — what the research says about when it helps.
By Dana Whitfield, Editor-in-Chief5 min readUpdated 2026-05-28✓ Fact-checked
Dollar cost averaging (DCA) means investing a fixed amount at regular intervals regardless of price. You buy more shares when prices are low and fewer when they are high.
Lump sum vs DCA
Historically, investing a lump sum immediately beats spreading it out roughly two-thirds of the time, because markets rise more often than they fall. DCA's value is behavioural: it reduces regret risk and keeps people invested.
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