Components of a Financial Plan
February 12, 2025
Amazon has become the poster-child of the e-commerce growth story across the world. For many years, retail executives across the globe have been nervously watching Amazon capture a bigger share of the pie each year. Doomsday scenarios are often predicted in media and by political pundits. However, the reality is that the situation is not […]
The past few years have witnessed the rise of online retail. As a result, there has been a persistent debate about whether or not brick-and-mortar stores have outlived their utility. There are many critics who believe that this may not be the case. Even though online retail has significant advantages, it still lags behind traditional […]
The average person believes that they are legally allowed to make any investment that a rich person can. However, this is not true in America, and this is certainly not true in many parts of the developed world. The reality is that the average American population is only legally allowed to purchase securities which are […]
Interest rates are one of the most important factors while determining the bond value. All other factors like payments, number of periods etc are standard i.e. the numbers supplied to us are the numbers that have to be used in the formula for calculating present value. However, this is not the case with interest rates. […]
Xiaomi is considered to be one of the most valuable startup firms in the world now. This firm, which has Chinese origins, has become truly global in nature. It sells world-class products at rock bottom prices all over the world. This firm completely dominates the Indian smartphone market. Given the fact, that India is poised […]
In the previous article, we learned about what dollar-cost averaging is. We also learned about some of the benefits that this strategy has to offer. Many successful retail investors have hailed this strategy to be the most important factor that has contributed to their success. However, that does not mean that the dollar cost averaging is without its flaws. In this article, we will have a closer look at some of the criticisms that have been leveled against dollar-cost averaging in all these years.
The bottom line is that dollar-cost averaging can cause investment performance to be suboptimal in certain cases. However, suboptimal here means that the return on investment may be a few percentage points less. However, the chances of losing the principal due to wrongly timing the market are reduced significantly when the dollar-cost averaging method is used.
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