As featured in the Seven Hills magazine April 2008 edition: Dollar cost or unit cost averaging is simply investing over many market entry points of a regular basis. For example one can do monthly or bi annual cost averaging into equity markets or currencies and what you will achieve is an average rate. So if one worries about market risk and timing it is better to spread that risk over many entry points explained Richard Cayne of Meyer Asset Management Ltd in Tokyo Japan. Should the market drop then the good news is that more units are bought with the same amount of money. When the market goes up the good news is that existing units that have already been purchased do rise. Richard Cayne explains that dollar cost or unit cost averaging investment plans are great for any long term investment plan such as towards retirement, Child education fees planning or real estate purchase.
Seven Hills magazine’s readers are High Net Worth Individuals in Japan
Seven Hills magazine’s readers are High Net Worth Individuals in Japan