Dollar-Cost-Averaging (DCA) is a perfect investor mini habit.

April 1, 2018

Dollar Cost Averaging (DCA) gets your RRSP or TFSA money working earlier. A strategic process engages a habit easy to do all year round, well ahead of, and therefore, eliminating the annual RRSP deadline frenzy. This investment also works well while investing using TFSAs.

Calculate the amount which is reasonable for you to invest, then make equal monthly investment purchases of mutual fund units. DCA helps you accumulate your annual RRSP or TFSA contribution, instead of rush-investing near annual deadlines.

While consistently purchasing throughout market declines, when units cost less, you buy more units with the same dollar. This can lead to higher profits when markets rise. This can mitigate fears of the market dropping in value.

 

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