Use this link to view the PDF file: Modified Dollar Cost Averaging Investment Strategy: Evidence from Major Developed International Stock Markets
Modified Dollar Cost Averaging Investment Strategy: Evidence from Major Developed International Stock Markets
Eric C. Lin
The Journal of Finance Issues
The Dollar Cost Averaging (DCA) method is widely used by individual investors as well as financial professionals and has been discussed extensively in the current literature. This studyexamines a modified DCA (MDCA) approach using a set of international stock market data. Theresearch will test the hypothesis that the simple modification could enhance investor returns overthose from the traditional DCA strategy. This is a subject of great interest to both academicresearchers as well as to investors. Empirical results indicate that the MDCA strategyoutperforms the DCA method across all of the international stock markets investigated.