The myth of perfect timing: A comparative analysis of Dollar Cost Averaging and Market Timing for retail investors

Identifier:  TFG:10306

Handle: https://hdl.handle.net/20.500.11797/TFG10306

Authors:  Laghdas Chadghan, Farah

Abstract:
Access to financial markets has become easier in recent years thanks to digital banking platforms, which has led to increased participation by retail investors. However, choosing the right time to invest remains a significant challenge. This study compares two strategies—Dollar Cost Averaging and Market Timing—applied to three investment funds between 2019 and 2024, with the goal of determining which is better suited for retail investors based on various performance metrics. The results show differences across the funds, meaning it is not possible to definitively claim that one strategy is superior to the other.