Which funds does a dollar cost averaging strategy suit?
There are some investments, which do not suit dollar cost averaging. Direct investments in property, for example, are not suitable because you must buy the property upfront. Other direct shares may not suit dollar cost averaging, partly because of the inflexibility of the rules governing the buying of shares such as minimum parcels to be purchased and partly because some may not offer direct debit facilities and the onus is on you to do it each month. That’s why one of the best investments to use for dollar cost averaging are managed funds, such as those offered through the Zurich range of managed investments. These funds offer an investment savings plan, which gives you all the flexibility and discipline you need, as well as professional management of your money. Why do we suggest that a significant portion of your dollar cost averaging strategy should be invested in shares and property (via a managed fund)? Because they are the highest performing asset classes over the long term. As
