Periodic,systematic investment in mutual funds is very much like ______ when buying stocks.

Question

Quizplus · Accepted Answer

Periodic, systematic investment in mutual funds involves investing a fixed amount of money at regular intervals, regardless of market conditions. This is similar to dollar-cost averaging when buying stocks, which also involves investing a fixed amount of money at regular intervals. With dollar-cost averaging, an investor buys more shares when prices are low and fewer shares when prices are high, which can help to offset the effects of market volatility over time. Switching privileges, systematic withdrawal, and exchange trading are not relevant to the concept of regular investment in mutual funds.

Periodic,systematic Investment in Mutual Funds Is Very Much Like ______