• Harsh Patel, CFA

What does Averaging Down mean?


Averaging Down is a similar strategy to Dollar Cost Averaging where an investor reduces the average cost of buying a stock, ETF or other type of investment by buying more shares in that stock, ETF etc, over time. 


Where Averaging Down differs to Dollar Cost Averaging, is that Averaging Down is where you buy more shares as the price of that stock, ETF or other type of investment is going down in value. 


So you’re reducing the average cost of buying a stock, ETF etc, as the share price is going down.


Please know, the value of investments can go up as well as down and you may receive back less than your original investment, meaning, when investing your capital is at risk.


Disclaimer: At Evarvest we believe in making investing and investment education more accessible, but we don’t provide investment advice and individual investors should make their own decisions. While we try our best, we cannot ensure the accuracy of the information we provide.


This content is copyright protected by Evarvest Limited (12544579). Evarvest Limited refers to the Evarvest network and/or one or more of its subsidiaries, each of which is a separate legal entity. 

Evarvest_mixed@2x.png
© Copyright 2020 by Evarvest Limited

Evarvest Limited is an appointed representative (FCA firm reference No. 928416) of WealthKernel Limited. WealthKernel Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 723719).

The information on our website or mobile application is not intended to attract or offer our services to anyone in any jurisdiction in which Evarvest is not regulated or able to market its services.

At Evarvest we believe in making investing and investment education more accessible, but we don’t provide investment advice and individual investors should make their own decisions.

Any and all information produced by Evarvest Limited (Company No. 12544579) is copyright protected, and while we try our best, we cannot ensure the accuracy of the information we provide.

Please know, the value of investments can go up as well as down and you may receive back less than your original investment. Further, the tax on your investments depends on your individual circumstances and may be subject to change.  

Evarvest Limited refers to the Evarvest network and / or one or more of its subsidiaries, each of which is a separate legal entity.