What is the general outcome of a dollar-cost averaging investment strategy?

In a dollar-cost averaging investment strategy, the key concept is that an investor consistently invests a fixed amount of money into a particular investment at regular intervals, regardless of the price of the investment at those times. By doing this, the investor buys more shares when prices are low and fewer shares when prices are high. This approach often results in the average cost per share being lower than the average price of the securities purchased over time.

This means that over the long term, the average price paid for the investments can be reduced, leading to a better overall cost basis for the investor compared to simply investing a lump sum all at once. While the average price of the securities may fluctuate, the intention behind dollar-cost averaging is to mitigate the risk of market volatility and avoid the pitfalls of attempting to time the market. Thus, the statement that the average price of securities purchased will be more than the average cost is not aligned with the principles of dollar-cost averaging, as the strategy is designed to result in a lower average cost per share over time.