Here are the benefits of Dollar Cost Averaging (DCA) :

• DCA avoids the disadvantages of lump-sum investing. Lump-sum is the opposite of DCA, where you buy a large amount at once. If there's a prolonged price drop, it can bring down your entire portfolio. DCA, on the other hand, can reduce the feeling of regret if something similar happens. A declining market is often seen as a buying opportunity. As such, DCA can significantly increase the long-term return potential of a portfolio, when market prices start to rise.
• Buying when market prices are declining ensures that you can earn higher value returns. Meanwhile, using a DCA strategy means ensuring that you buy more securities when prices are declining than you buy when prices are high.
• The strategy of regularly adding money to investment instruments allows for disciplined savings.
• The phenomenon of emotional investing caused by various factors, such as making large lump-sum investments and loss aversion, is not unusual in behavioral theory. For this reason, the use of DCA eliminates or reduces emotional investment. Disciplined buying strategies through DCA make investors focus their energy on the task at hand, and eliminate news and hype information from various media, about the performance and direction of short-term investments.