7 Common DCA Mistakes
Are you unknowingly destroying your long-term wealth? Here are the most common pitfalls global investors make with their DCAs.
1. Stopping DCAs during a Market Crash
This is the worst mistake you can make. A crash is when units are on sale. Stopping your DCA means you miss the recovery.
2. Chasing Past Returns
Investing in a fund just because it gave 40% returns last year is dangerous. Reversion to the mean often guarantees lower returns the following year.
3. Over-Diversification
Having 15 different mutual funds doesn't make you safer. It just dilutes your returns and turns your portfolio into an expensive index fund.