Category: General Knowledge | Last updated: 2026-09-18

In investing, what does 'dollar-cost averaging' primarily refer to?

A) Investing a large lump sum when the market is at its lowest point.
B) Selling off investments quickly when the market is volatile.
C) Investing a fixed amount of money at regular intervals, regardless of the asset's price.
D) Only investing in assets that have a historical average return above 10%.

Explanation

Dollar-cost averaging is an investment strategy in which an investor divides the total amount to be invested across periodic purchases of a target asset (e.g., stocks or mutual funds) to reduce the impact of volatility. It aims to reduce the average cost per share over time.

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