Dollar-cost averaging is a strategy that involves investing a fixed dollar amount into your mutual fund at regular intervals. Since you always invest the same amount, you will purchase more shares when the price is low and fewer shares when the price is high. In addition, your average cost per share may be less than your average price per share, thus reducing your investment risk over an extended period of time.

Dollar-cost averaging does not guarantee a profit or protect against a loss in declining markets. The idea is to average out the highs and lows to help you avoid trying to time your investments. It allows you to focus on long-term growth and ignore short-term market conditions. FAM Funds offers a dollar-cost averaging automatic monthly investment program – FAMvest.

FAM Value Fund and FAM Equity-Income Fund allow investors to utilize their Automatic Investment Plan to participate in dollar-cost averaging. Dollar-cost averaging is the investment technique whereby an investor commits to the purchase of an investment, in this case a FAM Fund, by purchasing a fixed dollar amount of the fund on fixed intervals over the long term. When the market price of the fund drops in price, you will buy more shares. When the price increases, you will buy fewer shares of the fund.

The basic premise of dollar-cost averaging is that over time, the average cost of your mutual fund shares may be lower than the average market price of the funds over the time period that you are investing. While this technique does not eliminate the chances of your losing money on an investment, losses can be limited during periods of declining fund share prices and profits may be enhanced during rising fund share prices. Dollar-cost averaging is a plan of continuous investment in securities regardless of fluctuating prices, an investor must consider his or her financial ability to continue purchases through periods of low price levels.

There is no assurance that any investment strategy will be successful in achieving investment objectives.