Dollar cost averaging, sometimes called a constant dollar plan, is a long-term investment strategy in which you invest the same amount of money in a particular investment on a regular schedule, regardless of whether the price of that investment goes up or down.

Dollar cost averaging may lower the average price per share you pay, and can protect you from investing all of your assets at market peaks.

Click on the buttons below to see what can happen if you invest $400 at a market low, a market high, or dollar cost average.

  Investing at the market low
  Investing at the market high
  Using Dollar Cost Averaging