What is DCA?
Dollar-Cost Averaging (DCA) consists in investing a fixed amount at regular intervals (for example every month) instead of all at once, regardless of the market price level at the time of each investment.
How it works
By investing the same amount at each interval, you mechanically buy more units when the price is low and fewer when it is high, which smooths the average purchase price over time compared to a single lump-sum investment made at one specific point in time.
Benefits and limits
Key takeaway
On the other hand, in a sustained bull market, an earlier lump-sum investment can statistically outperform a DCA spread over time — no method systematically guarantees the best outcome.
Attention
Tracking it in PortefeuilleZen
Each scheduled purchase is a regular buy transaction: PortefeuilleZen updates the held quantity and the average cost basis at each step. Contributions funding the account remain contributions, never gains. PortefeuilleZen does not recommend any amount, frequency or product.