Cost-average-effect

The cost average effect (average cost effect) occurs when you invest in the same security at regular intervals over a longer period of time, for example with an ETF savings plan. The amount invested, for example at the beginning of each month, remains the same, but at times when prices are lower, more shares of the security are automatically purchased with the same amount than when prices are higher. Over the long term, this means that the investment is made at an average price. As a result, the timing of your investments becomes less relevant to your investment success than if you were to invest a large amount all at once.