DCA Strategy Question

Hi All,

Brand new to the forum and relatively new to trading. Loving the info I'm reading and learning.

I have a question regarding dollar cost averaging without a lump sum, that I hope I can get advice on.

I have around $1000 a month to invest. I realise if I had a lump sum, it is better to invest in one fell swoop, but as I only have the $1000 available each month, I'm going to DCA monthly.

I'm looking at low cost ETFs, but my question is, am I better spreading the $1000 across numerous ETFs each month, or simply sticking with just 1 high-quality ETF and maximising the number of shares I can purchase over time. Oh, and yes, I'm factoring in my brokerage costs in all this.

Thanks in advance for any advice.

Cheers,
Scott

Austra02 said:

Hi All,

Brand new to the forum and relatively new to trading. Loving the info I'm reading and learning.

I have a question regarding dollar cost averaging without a lump sum, that I hope I can get advice on.

I have around $1000 a month to invest. I realise if I had a lump sum, it is better to invest in one fell swoop, but as I only have the $1000 available each month, I'm going to DCA monthly.

I'm looking at low cost ETFs, but my question is, am I better spreading the $1000 across numerous ETFs each month, or simply sticking with just 1 high-quality ETF and maximising the number of shares I can purchase over time. Oh, and yes, I'm factoring in my brokerage costs in all this.

Thanks in advance for any advice.

Cheers,
Scott

Click to expand...

Hi Scott, welcome to 'ASF

Starting Can Be Easy
Trading doesn’t have to be super complicated or time consuming. Also, you don’t have to be rich either. There are plenty of easy ways to get started without having a ton of money and without being the world’s foremost trading expert.

Investment strategy rather than trading
One way is to start investing in LICs or Index Funds that are available on the Australian Securities Exchange. It’s simple, quick and there are no minimum contribution requirements and "they trade like shares"

AFI and Argo Investments
There are many listed investment companies such as AFI and Argo Investments, both of which will give you access to high quality investments at a low cost. You can keep your investment strategy robust and straightforward by using index funds and the resources are out there to get started with a significant investment strategy, even without much money or knowledge.

Investing in LIC’s is a ‘set and forget’ style of investing.
Having money managers looking after your funds, will give you additional comfort knowing your funds are being looked after by professionals who have the means and ability to circumvent the markets side-way movements, a time when the market is neither going up or down. The professional money managers have more tricks up their sleeves to create returns than we have had dinners.

This is a blatant plug for a thread made for beginners, its the 'Dump it here' thread, it answers most question you can think of.

Found here --> https://www.aussiestockforums.com/threads/dump-it-here.34425/

There is even a free eBook for you as well.

Found Here --> https://www.aussiestockforums.com/threads/dump-it-here.34425/page-114#post-1011544

Enjoy our community, we have some of the smartest traders around that are willing to help you. I'll post my answers to you on the 'Dump it here' thread as other maybe interested in your question & my answer.

Skate.