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How to make money in a falling or volatile market?

It is generally considered that in order to make gains from a regular investment, the value of the funds you invest into must constantly rise - but is this always the case?

 

Dollar Cost Averaging
 The graph above  assumes annual contributions of $4,000
The figures indicate the number of units purchased with each contribution

 

As the graph illustrates, gains are made from a falling market because your contributions buy a larger number of units.  These then benefit from the portential marker upturn whcih follows, giving you a greater investment value:

 

Fund
Total No. of Units
Initial Unit Price
Final Unit Price
Total Investment Value

A

B

32,519

76,882

1.000

1.000

1.800

1.000

58,534

76,882

 

 

 
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