What is the term for the investment strategy of contributing the same dollar amount regularly over time?

The investment strategy of contributing the same dollar amount regularly over time is known as Dollar Cost Averaging. This approach involves consistently investing a fixed amount of money into a particular investment, such as stocks or mutual funds, regardless of the price fluctuations over time. This consistency allows investors to purchase more shares when prices are low and fewer shares when prices are high, effectively averaging out the cost per share over the long term.

Dollar Cost Averaging can help mitigate the impact of market volatility, as it encourages disciplined investing and reduces the emotional stress associated with trying to time the market. This strategy is particularly beneficial for long-term investors, as it promotes a steady investment habit and can lead to potentially better average returns compared to making a lump-sum investment at a single point in time.

In contrast, Value Averaging involves adjusting the investment amount based on the target growth rate of the portfolio, while Portfolio Diversification is a risk management strategy that involves spreading investments across different assets to reduce risk. Equity Swapping refers to a trading strategy where one stock is exchanged for another, typically for tax management or portfolio rebalancing purposes. Each of these concepts serves a different purpose in the realm of investment strategies, but the correct term for the regular, fixed investment strategy is indeed Dollar