Disciplined investing with dollar cost averaging
The concept of “buy low and sell high” sounds attractive, but it can be difficult to follow and potentially risky due to the unpredictable nature of short-term market prices. To help ease the burden of trying to time markets, dollar-cost averaging (DCA) can be an effective strategy. DCA is disciplined, systematic investing on a consistent and regular basis using Mackenzie Investments mutual funds.
Reasons to invest using DCA
• Investing systematically alleviates worry due to market fluctuations
• Allows investors to take the emotion and bias out of investing
• Introduce a disciplined and automated approach to building your long-term wealth
How it works
DCA involves systematically buying equal dollar amounts of a given investment on a regular basis. Rather than investing all your money at once and being fully committed to any subsequent market ups and downs, making a commitment to invest a smaller amount on a regular basis may lower your overall average cost per unit. By purchasing more units at lower prices and fewer when prices are high, investors are averaging out costs in the long run, which can reduce the risk of exposure to market fluctuations.
Because not every investor is the same, Mackenzie Investments offers two solutions for taking advantage of the DCA strategy.
|Mackenzie DCA Service||Mackenzie One-Step DCA|
|Administration||Paper based. Requires submission of enrollment form||One-ticket solution; No enrollment form required; set-up is automatic based on initial fund number-based transaction|
|Investment Options||Can be setup on any Mackenzie fund and purchase option||Limited to the set of target funds in Series A and F. See the Eligible Fund List for details.|
|Investment Frequency||Can be done over a 3, 6, 9- or 12-month duration with a weekly, bi-weekly and monthly frequency||Weekly on an annual basis. 1/52 of initial investment amount is automatically switched each week for 52 weeks.|
|Initial Minimum Investment||Initial minimum of $500||Initial minimum of $1,000 for each new set-up transaction|
|Reason to Invest||Flexibility||Automation|
Explore your options
Call your financial advisor to discuss how Mackenzie One-Step DCA can help you reach your financial goals.
- Mackenzie Dollar Cost Averaging PDF 200 kb
- One Step DCA Eligible Fund List PDF 418 kb
- Dollar Cost Averaging (DCA) Enrollment Form PDF 200 KB
- Mackenzie one-step dollar cost averaging: Questions and answers PDF(Locked) 344 KB
- Systematic Plans Instruction Form PDF 422 KB
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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This should not be construed as legal, tax or accounting advice. This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique. We have endeavored to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate. There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise. We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document. Please consult your own legal and tax advisor.