Components of a Financial Plan
February 12, 2025
Scalable business models are the latest buzzword in entrepreneurial circles all across the world. Most new-age founders aspire to make their businesses more scalable. However, scalability has to be built into a business before it actually exists. It is for this reason, that the decision to scale or not becomes strategic and something that founders […]
Concept of Carry Trade Carry trade is a kind of trade that is peculiar to the Forex market. In other markets, traders trade with the intention of benefitting from capital appreciation. However, in case of carry trade, traders have two expectations. They want to earn cash from capital appreciation as well as from the interest […]
When we think about investment banks, as well as the activities that they undertake, we tend to think about initial public offerings, debt syndication, and other such activities that are very visible to the public eye. However, the reality is that a lot of investments that are routed via investment banks are actually private placements. […]
Inventory is a very important part of the retail business. This is because the stock which retail stores hold on their books is their most important asset. The quality of this asset allows them to generate higher profits as compared to their peers. Hence, the valuation of inventory which is held by the retailer is […]
Sports league sponsorships are a very important source of financing for many leagues across the world. The revenue derived from sponsorship deals is the second biggest source of financing for most sports leagues after the sale of media rights. However, many people are still not aware of the economics of sponsorships. This is because of […]
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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