Dollar Cost Averaging Explained
01 November 2022
What is Dollar Cost Averaging?
Dollar Cost Averaging (DCA) is an investment strategy whereby investors contribute a fixed amount to their investments regardless of market conditions. This helps to lower the purchase price of you investments over time by taking advantage of market dips as well as reducing the risk of bad timing or investing according to one’s emotions.

DCA in action
Let’s say we have two different investors, Adam and Ben.

Adam practices DCA by investing RM 200 every month into a unit trust fund. While the unit price may change every month, Adam consistently invests the same amount, which allows him to buy more units when prices are low and less units when prices are high. Over time, this allows him to lower down the average cost of his investment.
In contrast, Ben prefers to take an all-in approach and invests a lump-sum of RM1000 when the unit price is RM1.00.
Assume that the unit price of the fund rises to RM1.50 at the end, Adam and Ben’s total gains are calculated as follows:-
From the example above, it is clear that the DCA approach proves to be a much more effective strategy to ride out the volatility in markets and reduce risk of bad timing.

Consistency is Key
Invest as soon as you can, for as long as you can. Let us be your partner in your investment journey.
This article has been prepared by AHAM Asset Management Berhad (“AHAM Capital”) (formerly known as Affin Hwang Asset Management Berhad) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to AHAM Capital and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of AHAM Capital.

The information contained in this presentation may include, but is not limited to opinions, analysis, forecasts, projections and expectations (collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Although this presentation has been prepared on the basis of information and/or Opinions that are believed to be correct at the time the presentation was prepared, AHAM Capital makes no expressed or implied warranty as to the accuracy and completeness of any such information and/or Opinions.

As with any forms of financial products, the financial product mentioned herein (if any) carries with it various risks. Although attempts have been made to disclose all possible risks involved, the financial product may still be subject to inherent risk that may arise beyond our reasonable contemplation. The financial product may be wholly unsuited for you, if you are adverse to the risk arising out of and/or in connection with the financial product.

AHAM Capital is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessments of the contents of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers.

AHAM Capital and its affiliates may act as a principal and agent in any transaction contemplated by this presentation, or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this presentation is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.

Neither AHAM Capital nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (expressed or implied) arising out of, contained in or derived from or any omission from this presentation, except liability under statute that cannot be excluded.
Hello, I'm Nadia. How may I help you?
Talk to Nadia
Not sure what to ask? Try these.
  1. I forgot my i-Access password.
  2. How to perform redemption?
  3. What is the minimum amount to open an investment account?
  4. Checklist for deceased redemption.
  5. What is the best fund for me?
<  Slide to cancel
I'm listening ...
Click to stop recording
Generic Popup