Following the recent global stock market downturn, market sentiments, the desire and motivation to invest is at an all-time low. If this is your dilemma, there’s an investment strategy that can help you to take advantage of the market downturn and allay your fear: the method is called dollar-cost averaging. How dollar-cost averaging operatesDollar-cost averaging is a strategy to invest a specific amount of money in the market at routine intervals (monthly, quarterly, half-yearly or yearly). On the other hand, this strategy works especially well in an extended market downturn (like what you expect now) as you will keep buying at lower and lower prices until the market recovers. How it helps you to profit from current marketNow, let’s see how we can apply dollar-cost averaging strategy to the current market scenario.

Source: The Star March 21, 2020 02:03 UTC