dollar-cost averaging

Investing a fixed amount at equal intervals and continuing to do so over a long period. The result is that more shares of a stock, mutual fund or exchange-traded fund (ETF) are purchased when prices are relatively low and less are purchased when prices are relatively high. This can result in lower average per-share cost over time. Dollar-cost averaging protects investors from volatile market conditions and price fluctuations. Additionally, dollar-cost averaging is considered to be a passive investing strategy that minimizes the amount of time an investor has to spend on monitoring their investments and portfolio.