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Dollar-Cost Averaging

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.

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 strategy will be successful in achieving investment objectives.

All investing involves risk including the possible loss of principal. Before investing, carefully read the fund’s prospectus which includes investment objectives, risks, charges, expenses and other information about the fund. Please call us at 800-932-3271 or visit famfunds.com for a prospectus or summary prospectus.

Securities offered through Fenimore Securities, Inc., Member FINRA/SIPC and advisory services offered through Fenimore Asset Management, Inc.

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FAM Funds: Low Minimums
Learn about our low minimums and the concept of dollar-cost averaging, which allows you to focus on long-term growth and ignore short-term market conditions.