These examples are intended to illustrate tax deferral and make no intimations about performance. One method of systematic investing, known as dollar cost averaging, enables investors to potentially take advantage of price fluctuations. Periodic investment plans do not assure a profit or protect against loss in declining markets. This type of plan involves continuous investments in securities regardless of fluctuating price levels. Investors should consider their financial ability to continue purchases through periods of low price levels.
Past performance is no guarantee of future results.
To be sure, dollar-cost averaging does not guarantee a profit or protect you from loss in a declining market. It does, however, free you from worrying about trying to time the market, something even the experts fail to do consistently. And it generally provides a lower average cost. Dollar cost averaging cannot assure a profit or protect against loss in declining markets. Investors should consider their ability to continue purchases through periods of falling prices.