Cost average effect

When an investor pays a fixed amount into a fund, he receives a varying number of shares depending on the fund’s current value. The benefit of the cost average effect increases with the length of the savings plan and the degree of price fluctuation.

Term-Nr.: 211

German: Durchschnittskosten-Effekt (288)

Source: Swiss Fund Guide 2010 m. e. E., 20.04.2010