Dollar-cost averaging

Dollar-cost averaging is an investing approach where a fixed amount of money is invested at regular intervals, such as monthly, regardless of whether prices are up or down at the time. This means buying more shares when prices are low and fewer shares when prices are high, without trying to time the market.

The main benefit is behavioral as much as mathematical, it removes the temptation to guess when the "right" time to invest is, and it smooths out the average price paid over time compared to investing a lump sum all at once right before a downturn.