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Optimize Your Portfolio with Excel Funds’ Dollar-Cost Averaging Plan
Advantages of Excel Funds’ Dollar-Cost Averaging PlanThe main reason why dollar-cost averaging is so attractive is that it removes the element of trying to time the market. When markets are down, investors tend to become fearful and reluctant to purchase shares. With the Excel Funds Dollar-Cost Averaging Plan, shares will be purchased automatically, regardless of market conditions. In a bull market, dollar-cost averaging prevents investors from purchasing too many shares at lofty prices and valuations. When markets are flat, dollar-cost averaging ensures that investors stay invested. Overtime, the Excel Funds Dollar-Cost Averaging Plan helps to smooth out the ups and downs in the prices of our mutual funds, with the net effect of lowering the average purchase cost. Investors who put a fixed-dollar amount to work over a set time frame, will be in a much better position to buy shares at cheaper prices, while also benefitting from rebounds in the market, every step of the way.
Excel Funds Dollar-Cost Averaging Plan At Work
Dollar-Cost Averaging Helps to Navigate Market Fluctuations
Illustration shows an investment of $500 each month in the Excel India Fund over 5 years and demonstrates how dollar-cost averaging can potentially lower the average cost of the portfolio by purchasing more securities when share prices are lower and fewer when share prices are higher.
Source: Bloomberg data, historical price, accessed on February 2, 2016.