Question

The investing strategy where an investor buys a fixed dollar amount of stocks or mutual funds regularly over a period of time is called:_______.

Answer 1

Dollar cost averaging

Step-by-step explanation:

Dollar cost averaging refers to an investing strategy where an investor will invest a fixed amount of money in periodic stock purchases. The idea behind this type of strategy is to try to reduce volatility and therefore risk.

The main issue with this investing strategy is that is doesn't consider that stock prices fluctuate all the time but generally show an upward tendency in the long run.