What is "Dollar-Cost Averaging"?
Dollar-Cost Averaging (DCA) is a systematic investment strategy where you invest a fixed amount regularly in a specific asset, regardless of price fluctuations. The result is that when prices are low, you buy more units of that asset, and when prices are high, you buy fewer units. Over the long term, this technique averages out your cost per share, mitigating the impact of short-term market volatility on your investments.According to market research*, most investors make wrong investment decisions due to market sentiment, which affects returns. DCA effectively reduces the impact of market emotions.The Best Time to Invest is Any Time
A key takeaway from the book is that any time is a good time to invest, as if you DCA consistently, you can build wealth steadily.But what products should you choose? Funds are very suitable for this strategy. Let's look at why in detail.1.Regular, Fixed-Amount InvestmentsBecause the barrier to entry for investing in funds is generally low, for example, WeLab Bank’s self-select fund service requires only HKD100 or USD 15 per transaction, making it suitable for small monthly regular investments. For example, if you can save a certain amount of money each month (e.g., HKD1,000), you can regularly invest this amount in your favorite funds each month. This way, you won't hesitate due to market fluctuations, and you'll build a consistent saving and investment habit.2. Cost AveragingThe investment market is inevitably volatile, with prices sometimes high and sometimes low. Regularly buying allows you to purchase at different price points, and over the long term, the average cost per share will decrease. As long as the market is consistently upward in the long run, even with short-term fluctuations, there will still be good growth.3. Enhances Investment MindsetDCA is not just a strategy, but a mindset. To have assets grow steadily over time, the first step is to avoid letting market emotions disrupt your investment strategy.Real-Life ExampleTaking the Schroder Global Gold Fund (HKD) (Accumulation) as an example, this fund was the highest price fluctuation HKD fund on the feature fund platform from November 1, 2022, to October 31, 2025. Assuming you started making fixed monthly investments of HKD3,000 on November 1, 2022, totalling 36 investments, with a total principal amount of HKD 108,000, the holdings value as of October 15, 2025, is HKD279,964, with a total return rate of 159%^.In ConclusionIf you find it difficult to time the market, you can learn about the DCA strategy. Regularly investing a fixed amount in funds, regardless of market fluctuations, investing a certain amount each month, can build a good saving habit over the long term, and is generally less risky than investing a lump sum.Notes:*Source: https://www.sec.gov/investor/locinvestorbehaviorreport.pdf
^Assumes starting investment on November 1, 2022, with fixed monthly investments of HKD3,000 on the 15th of each month, purchasing fund units at the day's fund price, and holding them continuously.
Holdings value is calculated based on the total fund units multiplied by the fund price on October 15, 2025.
This information is for illustrative purposes only and does not represent actual returns that investors may achieve. Schroder Global Gold Fund
(HKD) (Accumulation) Fund Annual Performance: Inception Date: 14 January 2021; Since Inception: 136.27%; 2024: 15.97%; 2023: 12.99%; 2022: -12.10%。
Information provided by fund house and Morningstar Asia Limited. Price volatility is shown as the standard deviation of fund price changes. Investing involves risks. Past performance is not indicative of future results. Please refer to the relevant fund sales documents for details on fund performance. Information as of October 31, 2025.Important DisclaimerThis webpage is for reference only and does not constitute an offer, solicitation, advice, opinion, or any guarantee to anyone to buy, subscribe to, or trade any investment products or services. Investment products or services are not the same as, nor should they be considered a substitute for, fixed deposits.
Investing involves risks, fund prices can go up or down and may even become worthless. Some investments may not be able to be converted to cash immediately based on market conditions. Please carefully read our financial service terms (including risk disclosure) and the relevant fund sales documents to understand our financial services and more information about the fund, including its risk factors.
Investment decisions are your own responsibility, but you should not invest in the products or services mentioned on this webpage unless the intermediary has explained to you, after considering your financial situation, investment experience, and goals, that the products or services are suitable for you.
Before making any investment decisions, you must assess your own financial situation, investment goals and experience, willingness and ability to take risks, and understand the nature and risks of the product.
If you have any questions about the products or services mentioned on this webpage, conducting transactions, or the nature and risks of funds, you should consult an independent financial advisor.
Any content on this webpage should not be interpreted as a distribution, offer for sale, or solicitation to purchase any securities or investment products in any jurisdiction where such acts would be unlawful under the laws of that jurisdiction.
If you are outside of Hong Kong, please understand and comply with any relevant restrictions. Continued purchase constitutes your declaration and guarantee that you are a resident of Hong Kong, or that the applicable laws or regulations in your jurisdiction allow you to access information on our website or app and make purchases.
This webpage is published by WeLab Bank and has not been reviewed by the Securities and Futures Commission.
This Chinese webpage is a translation of the English version. If there are any discrepancies or inconsistencies between the Chinese and English versions, the English version shall prevail.