• Products

    World Bond Fund Monthly Positioning & Outlook

    View Now >

  • Insights

    Human-Centric Investing Podcast

    Listen to Latest Episode >

  • Practice Management

    Applied Insights Team

    Learn More >

  • Resources

    Tax Center

    View Now >

  • About Us

    Human-Centric Investing

    Learn More >

You may be wondering if now is a good time to invest. But waiting for the right time to get into the market could cause you to miss out on significant gains.

Dollar cost averaging is a strategy in which you invest a consistent amount on a recurring basis (i.e., monthly, quarterly, etc.) regardless of market conditions. It can be an effective way to systematically build your wealth.

The table below contrasts the results of three different investors who invested $10,000 per year in the S&P 500 Index.

All three investors enjoyed significant gains because time in the market matters much more than timing the market.

Lucky, Unlucky, and Systematic Investors All Fared Well by Investing Regularly

Unlucky Investor
Invested Each Year at the Market High
Systematic Investor
Invested on the First Day of Each Year
Lucky Investor
Invested Each Year at the Market Low
Date Cumulative Investment Value Date Cumulative Investment Value Date Cumulative Investment Value
3/24/2000 $10,000 $10,000 1/3/2000 $10,000 $10,000 12/20/2000 $10,000 $10,000
1/30/2001 $20,000 $19,079 1/2/2001 $20,000 $19,177 9/21/2001 $20,000 $17,710
1/4/2002 $30,000 $26,491 1/2/2002 $30,000 $26,898 10/9/2002 $30,000 $24,476
12/31/2003 $40,000 $35,999 1/2/2003 $40,000 $30,953 3/11/2003 $40,000 $35,431
12/30/2004 $50,000 $49,970 1/2/2004 $50,000 $49,832 8/12/2004 $50,000 $58,217
12/14/2005 $60,000 $63,338 1/3/2005 $60,000 $64,807 4/20/2005 $60,000 $73,036
12/15/2006 $70,000 $82,382 1/2/2006 $70,000 $78,546 6/13/2006 $70,000 $90,314
10/9/2007 $80,000 $101,713 1/2/2007 $80,000 $100,952 3/5/2007 $80,000 $112,816
1/2/2008 $90,000 $105,860 1/2/2008 $90,000 $116,498 11/20/2008 $90,000 $74,018
12/28/2009 $100,000 $95,281 1/2/2009 $100,000 $83,396 3/9/2009 $100,000 $77,205
12/29/2010 $110,000 $118,612 1/4/2010 $110,000 $115,466 7/2/2010 $110,000 $129,989
4/29/2011 $120,000 $139,137 1/3/2011 $120,000 $144,368 10/3/2011 $120,000 $153,287
9/14/2012 $130,000 $164,245 1/2/2012 $130,000 $155,762 1/2/2012 $130,000 $186,410
12/31/2013 $140,000 $223,044 1/2/2013 $140,000 $190,689 1/2/2013 $140,000 $226,242
12/29/2014 $150,000 $267,444 1/2/2014 $150,000 $262,450 2/3/2014 $150,000 $292,560
5/21/2015 $160,000 $284,848 1/2/2015 $160,000 $308,375 8/25/2015 $160,000 $334,110
12/13/2016 $170,000 $324,178 1/4/2016 $170,000 $322,642 2/11/2016 $170,000 $340,619
12/18/2017 $180,000 $401,768 1/2/2017 $180,000 $371,230 1/2/2017 $180,000 $435,023
9/20/2018 $190,000 $454,106 1/2/2018 $190,000 $462,276 12/24/2018 $190,000 $485,082
12/27/2019 $200,000 $524,943 1/2/2019 $200,000 $452,008 1/3/2019 $200,000 $515,391
12/31/2019 $523,547 12/31/2019 $594,329 12/31/2019 $693,806

Data Sources: Morningstar and Hartford Funds, 3/20. Past performance does not guarantee future results. Assumes reinvestment of dividends and capital gains and no taxes or transaction costs. The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. The Index is unmanaged and not available for direct investment. For illustrative purposes only. Dollar-cost averaging neither assures a profit nor protects against a loss. Because systematic investing involves continuous investing regardless of fluctuating price levels, you should carefully consider your financial ability to continue investing through periods of fluctuating prices.

Talk to your financial professional today about setting up a systematic investing strategy to help you build long-term wealth.

 

CCWP081   219382

The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, ETF or closed-end interval fund prospectus or summary prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds and the closed-end interval fund are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA/SIPC. Exchange-traded products are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc. Schroder Investment Management North America Ltd. serves as a secondary sub-adviser to certain funds. Hartford Funds refers to Hartford Funds Management Group, Inc. and its subsidiaries, including HFD, HFMC, and Lattice, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

© Copyright 2021 Hartford Funds Management Group, Inc. All Rights Reserved. Not FDIC Insured | No Bank Guarantee | May Lose Value