Dollar-cost averaging is investing a fixed amount on a regular schedule — say every month — regardless of the price. You automatically buy more units when prices are low and fewer when they're high.

It removes the temptation to time the market and smooths your average buying price over time. For most people it beats trying to guess the perfect moment, and it builds the habit of consistent investing.

In Pakistan: easily done with a monthly mutual fund or digital gold contribution.

Example: investing Rs 5,000 every month into a fund, whatever the market is doing that month.

Don't confuse it with: lump-sum investing — putting a large amount in all at once.

Related terms: Compounding · Mutual fund · Diversification Where you'll meet this: How much money to start investing · Common investment mistakes