Dollar-cost averaging is a time-tested investment strategy that enables investors to reduce the impact of market volatility and potentially grow their wealth over the long run. The concept is simple: instead of trying to time the market, investors consistently invest a fixed amount of money at regular intervals, regardless of market conditions.

This strategy minimizes the impact of market highs and lows by buying more shares when prices are low and fewer shares when prices are high. By consistently investing over time, investors can effectively average out the cost of their investments, potentially benefiting from both upward and downward price movements.