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Dollar Cost Averaging
Introduction to dollar cost averaging
You're able to regularly save $100 per month.
In May, the units cost $1 each, so you're
able to buy 100 units.
At the end of August, you own 418 units. The cost of the units is now $1.05, so your total investment is worth $439.
The cost of your 418 units over the four months was $400, so the average cost of each unit was 96c.
Your investment has increased from $400 to $439.