Dollar-cost averaging (DCA) is a proven investment strategy that helps maximize returns and minimize risk. With DCA, you consistently invest a fixed amount into your portfolio at regular intervals, regardless of market conditions. This approach takes advantage of market volatility, allowing you to buy more shares when prices are low and fewer shares when prices are high.

One of the key benefits of DCA is that it removes the emotional aspect from investing. Rather than trying to time the market and make educated guesses about when to buy or sell, DCA follows a disciplined approach based on long-term goals. By investing consistently over time, you benefit from dollar-cost averaging and ride the wave of market fluctuations without getting caught up in short-term market movements.

It's important to note that DCA is most effective when applied to a diversified portfolio. By spreading your investments across different asset classes and sectors, you reduce the risk associated with individual holdings. Diversification helps smooth out short-term volatility and increases the likelihood of achieving favorable long-term results.