Dollar-Cost Averaging: An Investigation
Dollar-cost Averaging (DCA) is a common and useful systematic investment strategy for mutual fund managers, private investors, financial analysts and retirement planners. The issue of performance effectiveness of DCA is greatly controversial among academics and professionals. As a popularly recommen...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2007
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| Online Access: | https://eprints.nottingham.ac.uk/21375/ |
| _version_ | 1848792236777537536 |
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| author | FANG, Wei |
| author_facet | FANG, Wei |
| author_sort | FANG, Wei |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Dollar-cost Averaging (DCA) is a common and useful systematic investment strategy for mutual fund managers, private investors, financial analysts and retirement planners. The issue of performance effectiveness of DCA is greatly controversial among academics and professionals. As a popularly recommended investment strategy, DCA is recognized as a risk reduction strategy; however, the advantage was claimed as the expense of generating higher returns.
The dissertation is to intensively investigate the performances of DCA in light of the literatures comprehensively researched by previous thinkers. Using Monte Carlo simulation, the reviewed outcomes are confirmed by scientifically tests that DCA strategy is superior to reduce risk, but it is inferior to LS strategy in terms of effectiveness to produce returns. Although providing outperformances by investing in less volatile assets, it is more suitable to be applied for more risky investments in comparison with LS. |
| first_indexed | 2025-11-14T18:41:12Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-21375 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:41:12Z |
| publishDate | 2007 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-213752018-04-10T13:57:13Z https://eprints.nottingham.ac.uk/21375/ Dollar-Cost Averaging: An Investigation FANG, Wei Dollar-cost Averaging (DCA) is a common and useful systematic investment strategy for mutual fund managers, private investors, financial analysts and retirement planners. The issue of performance effectiveness of DCA is greatly controversial among academics and professionals. As a popularly recommended investment strategy, DCA is recognized as a risk reduction strategy; however, the advantage was claimed as the expense of generating higher returns. The dissertation is to intensively investigate the performances of DCA in light of the literatures comprehensively researched by previous thinkers. Using Monte Carlo simulation, the reviewed outcomes are confirmed by scientifically tests that DCA strategy is superior to reduce risk, but it is inferior to LS strategy in terms of effectiveness to produce returns. Although providing outperformances by investing in less volatile assets, it is more suitable to be applied for more risky investments in comparison with LS. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21375/1/07MAlixwf1.pdf FANG, Wei (2007) Dollar-Cost Averaging: An Investigation. [Dissertation (University of Nottingham only)] (Unpublished) Dollar-Cost Averaging DCA Lump-sum LS Monte Carlo Simulation |
| spellingShingle | Dollar-Cost Averaging DCA Lump-sum LS Monte Carlo Simulation FANG, Wei Dollar-Cost Averaging: An Investigation |
| title | Dollar-Cost Averaging: An Investigation |
| title_full | Dollar-Cost Averaging: An Investigation |
| title_fullStr | Dollar-Cost Averaging: An Investigation |
| title_full_unstemmed | Dollar-Cost Averaging: An Investigation |
| title_short | Dollar-Cost Averaging: An Investigation |
| title_sort | dollar-cost averaging: an investigation |
| topic | Dollar-Cost Averaging DCA Lump-sum LS Monte Carlo Simulation |
| url | https://eprints.nottingham.ac.uk/21375/ |