{"id":12017,"date":"2026-06-02T08:58:45","date_gmt":"2026-06-01T22:58:45","guid":{"rendered":"https:\/\/investors-admin.raizinvest.com.au\/?p=12017"},"modified":"2026-06-02T08:59:24","modified_gmt":"2026-06-01T22:59:24","slug":"dollar-cost-averaging-investing-through-market-ups-and-downs","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/dollar-cost-averaging-investing-through-market-ups-and-downs\/","title":{"rendered":"Dollar cost averaging: Investing through market ups and downs"},"content":{"rendered":"\n
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Some weeks markets are up. Other weeks they\u2019re down. That\u2019s a normal part of investing.<\/p>\n\n\n\n

But when markets move around, it can leave investors wondering: Should I wait? Should I invest now? What if the market drops tomorrow?<\/em><\/p>\n\n\n\n

That\u2019s where dollar cost averaging comes in.<\/p>\n\n\n\n\n\n\n\n

Dollar cost averaging is an investing strategy where you invest smaller amounts regularly over time, instead of investing one large amount all at once. Many investors use this approach to help build consistent investing habits without trying to predict market movements.<\/p>\n\n\n\n

This article is general information only and is intended for educational purposes.<\/p>\n\n\n\n

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What is dollar cost averaging?<\/h3>\n\n\n\n

Dollar cost averaging means investing a fixed amount regularly, regardless of whether markets are rising or falling.<\/p>\n\n\n\n

For example, instead of investing $1,200 in one go, you might invest $100 each month over 12 months.<\/p>\n\n\n\n

When prices are higher, your money buys fewer units or shares. When prices are lower, your money buys more.<\/p>\n\n\n\n

Over time, this approach may reduce the impact of investing a lump sum at a single point in time.<\/p>\n\n\n\n

Importantly, dollar cost averaging does not guarantee profits or protect against losses. Investment values can rise and fall over time.<\/p>\n\n\n\n

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Why investors use dollar cost averaging<\/h3>\n\n\n\n

It helps build consistency<\/strong><\/p>\n\n\n\n

Trying to perfectly time the market can feel overwhelming, even for experienced investors.<\/p>\n\n\n\n

Many investors use dollar cost averaging to stay focused on regularly investing over the long term, rather than reacting to short-term market movements.<\/p>\n\n\n\n

It can feel more manageable<\/strong><\/p>\n\n\n\n

For many Australians, regularly investing smaller amounts can feel more achievable than investing a large lump sum upfront.<\/p>\n\n\n\n

Micro-investing can help people start earlier and build investing habits over time.<\/p>\n\n\n\n

It encourages long-term thinking<\/strong><\/p>\n\n\n\n

Markets naturally move through ups and downs.<\/p>\n\n\n\n

By investing consistently, some investors choose to focus less on short-term market noise and more on their long-term financial goals.<\/p>\n\n\n\n

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A simple example<\/h3>\n\n\n\n

Let\u2019s say you invest $100 each month into the market:<\/p>\n\n\n\n

Month<\/strong><\/td>Price per unit<\/strong><\/td>Units purchased<\/strong><\/td><\/tr><\/thead>
January<\/td>$10<\/td>10<\/td><\/tr>
February<\/td>$5<\/td>20<\/td><\/tr>
March<\/td>$20<\/td>5<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Over three months, you invested $300 and purchased 35 units in total.<\/p>\n\n\n\n

Because you continued investing when prices changed, your average purchase price was spread across different market conditions.<\/p>\n\n\n\n

This example is simplified and does not reflect actual investment performance, fees or market conditions.<\/p>\n\n\n\n

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Dollar cost averaging vs trying to time the market<\/h3>\n\n\n\n

Many investors wait for the \u201cperfect\u201d time to invest.<\/p>\n\n\n\n

The challenge is that markets can move unexpectedly, and it\u2019s difficult to consistently predict short-term market movements.<\/p>\n\n\n\n

Dollar cost averaging shifts the focus from timing the market to building regular investing habits over time.<\/p>\n\n\n\n

For some investors, consistency can feel more achievable than trying to pick the perfect moment to invest.<\/p>\n\n\n\n

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How Raiz can help<\/h3>\n\n\n\n

Raiz was designed to make regular investing simple and accessible.<\/p>\n\n\n\n

With features like:<\/p>\n\n\n\n