Is anyone is aware of some primary research that describes dollar cost averaging (DCA) and if there is an optimal size of a contribution (either dollar or percentage of total funds to invest).
Obviously this is highly dependent on how the market is acting, but I'd like to find out if 'guidelines' exist.
In the past, my individual transactions have been 0.5-2% of my entire portfolio, and the minimum was based on keeping the expense ratio below 0.5% (I've now softened this rule to 1%).
So lets say I've got $10-$20k sitting, and all needs to go to one holding to fit my asset allocation, would it be recommended to buy in $1k chunks (1% expense ratio) or larger?
Pointers to primary research appreciated.
Obviously this is highly dependent on how the market is acting, but I'd like to find out if 'guidelines' exist.
In the past, my individual transactions have been 0.5-2% of my entire portfolio, and the minimum was based on keeping the expense ratio below 0.5% (I've now softened this rule to 1%).
So lets say I've got $10-$20k sitting, and all needs to go to one holding to fit my asset allocation, would it be recommended to buy in $1k chunks (1% expense ratio) or larger?
Pointers to primary research appreciated.