Understanding DCA: An Asset Accumulation Strategy for General Investors

What is DCA and Who Is It Suitable For

Dollar-Cost Averaging (DCA) or averaging down costs is an easy and systematic investment method. Investors set a fixed amount of money each month and use that money to buy stocks or assets of their choice regardless of the current price, such as on the 15th of every month or after receiving their salary.

Key features of DCA:

• When stock prices are high, the number of shares purchased is lower
• When stock prices are low, the number of shares purchased is higher
• Helps build disciplined savings and reduces fear from market volatility

This method is most suitable for salary earners with regular income, as they can save consistently starting from 1,000-5,000 THB per month to accumulate assets over the long term.

How to Calculate DCA and See Its Effectiveness in Real-Time

Calculating DCA is straightforward. For example, investing 3,000 THB monthly for 12 months:

Interesting point: The average cost per share calculated via DCA is 9.67 THB, which is lower than the final month’s closing price of 15 THB. If you had invested all 36,000 THB at once, you would have only 2,400 shares. Clearly, DCA allows you to acquire more shares.

Advantages and Limitations of DCA

Clear Benefits

1. Low Initial Capital, Anyone Can Do It

• No need for large reserves; start from 1,000-2,000 THB
• Those with limited funds can invest comfortably

2. Reduces Timing Risk

• No need to worry about “whether the price is high or low now”
• Automated system handles transactions, keeping you on plan

3. Better Returns Than Savings Accounts

• In the example, the average cost decreased from 10 THB to 9.67 THB
• When stock prices rise to 13 THB, profit per share is 4 THB

4. Suitable for Beginners and Busy People

• No need to closely follow news
• Company experts can help select fundamentally strong stocks

Limitations to Be Aware Of

1. Average Cost Is Not Fixed

• If you choose stocks with no future prospects and prices keep falling, DCA won’t help much

2. Does Not Completely Reduce Portfolio Volatility

• High-volatility stocks still expose your portfolio to market swings

3. Not Suitable for Market Timing Enthusiasts

• DCA requires discipline and patience; it lacks high flexibility

What Kind of Stocks Are Suitable for DCA

Before starting DCA, set criteria for selecting stocks:

Businesses with Competitive Advantages

• Companies that can maintain their industry position long-term

Consistent Growth

• Clear business plans and operating in trending sectors

Steady Profits

• Demonstrates genuine operational capability

Reasonable Debt Levels

• Excessive long-term debt increases repayment risk

Growing Retained Earnings

• Reflects good management and stable direction

Controlled Operating Costs

• Indicates excellent management efficiency

Brokerage Firms Offering DCA Services

Note: Fees do not include stock exchange fees and 7% VAT.

6 Recommended Stocks for DCA Investment

1. PTT - PTT Public Company Limited (

A national energy company with a comprehensive business from exploration and production to distribution. Highly stable and consistently pays dividends, suitable for long-term investment.

) 2. CPALL - CP All Public Company Limited ###
Operator of over 13,000 7-Eleven convenience stores. Besides core business, has distribution centers and other supporting businesses. Continuous growth and regular dividends.

( 3. SCC - Siam Cement Public Company Limited )
Leading ASEAN company in cement, chemicals, and packaging with over 100 years of history. Demonstrates high stability and good adaptation to new technologies.

4. INTUCH - Intouch Holdings Public Company Limited (

Invests in telecom, IT, and digital sectors. Major shareholder of AIS, a leading mobile operator. Steady cash flow and high dividend payouts.

) 5. BBL - Bangkok Bank Public Company Limited ###
Large commercial bank with extensive network. Strong operational history and consistent dividend payments.

( 6. CPN - Central Pattana Public Company Limited )
Leading shopping mall developer and manager with over 30 malls. Also manages office buildings, hotels, and residences. Stable rental income and adaptive to changing consumer behaviors.

How to Start DCA Investment

Steps to Begin:

1. Choose a Brokerage - Find a firm with low fees and good service
2. Set Monthly Investment Amount - Starting from 1,000 THB or more, depending on capacity
3. Select Stocks with Good Fundamentals - Study operational performance, profits, and debts
4. Determine Investment Duration - At least 5-10 years for visible results
5. Maintain Savings Discipline - Stick to the plan and avoid panic selling during market volatility

DCA investment is not the method for maximum short-term returns but helps investors accumulate assets steadily without timing the market. With patience and disciplined savings, long-term gains will come naturally.