PERFORMANCE COMPARISON AMONG DOLLAR COST AVERAGING, LUMP SUM INVESTING AND VALUE AVERAGING METHODS FOR DOMESTIC EQUITY FUNDS

• Main Authors: HUANG LI-NA, 黃麗娜
• Other Authors: LIANG SHIH-AN
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/65400437510959348551

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 98 === With the diversified financial tools in the market, selecting a secured investment tool which provides stable return in order to increase capital gains is important. As mutual fund investment is getting popular, dollar cost averaging, lump sum investing and value averaging method are commonly used by investors. The purpose of this research report is to compare the performance under the three investment methods for investors’ reference when making investment decisions. This research report used per unit net asset value of 101domestic equity funds downloaded from C Money database. One year, three years and five years performances under dollar cost averaging, lump sum investing and value averaging are calculated. The conclusion is as follows: 1. Performances are indifferent for one year investment period under the three investment methods. 2. For three years investment period, lump sum investing performs the best, follow value averaging and dollar cost averaging. 3. For five years investment period, lump sum investing performs better than dollar cost averaging and value averaging. Performances under dollar cost averaging and value averaging, lump sum investing and value averaging are indifferent. 4. Under the three investment methods of dollar cost averaging, lump sum investing and value averaging: (1) In terms of performance, longer investment period provides better return. (2) In terms of standard deviation, longer investment period increases risk level. (3) Based on the probability analysis of positive return under the investment periods of one year, three years and five years, the probability of obtaining positive return increases with the longer investment period.