Understanding DCA: The Dollar-Cost Averaging Investment Strategy for General Investors

What is DCA and Why Is It Popular

Dollar-Cost-Averaging (DCA) or systematic investment is a method many investors choose for long-term wealth building. This strategy does not require expertise in market analysis or timing trades but relies on discipline and patience to invest consistently.

The mechanism of DCA is very important: investors set a fixed amount and invest at regular intervals, such as 1,000 THB at the end of each month. Regardless of market movements, when prices rise, the number of shares purchased decreases; when prices fall, the number of shares bought increases. This approach naturally reduces the average cost per share over time.

Who DCA Is Suitable For

Those with regular income and the ability to allocate part of their funds each month will benefit most. Salaried employees or entrepreneurs with steady cash flow can set aside a budget for investment, such as 2,000-5,000 THB per month, without affecting daily expenses.

Additionally, DCA is suitable for the following groups:

• Beginners learning about investing who are risk-averse
• Individuals with limited time to monitor daily market prices and news
• Those with a modest initial investment but a goal to accumulate assets

Advantages of DCA Investment

Flexibility in capital is a clear benefit. Starting with just 1,000-2,000 THB makes this strategy accessible to most people, without requiring large reserves.

Building natural investment discipline benefits mental well-being. Setting up automatic monthly transfers makes investing a habit, eliminating the need for repeated decision-making.

Reducing risk of buying at peak prices is the core of DCA. Instead of trying to time the market (which is difficult even for professionals), investors get an average price that is more reasonable.

Potential for good long-term returns due to continuous investing and dividends. Long-term holders have a higher chance of making profits.

Limitations and Risks to Watch Out For

Although DCA is a risk management strategy, it is not without drawbacks. Investing in stocks with poor future prospects or companies with deep financial problems can still lead to losses despite consistent investing.

Averaging costs alone is not enough. Sometimes, the average cost may still be higher than the market price during that period. Investors need patience for stock prices to recover.

Does not reduce portfolio volatility. If selected stocks are highly volatile, investors will still see significant fluctuations in portfolio value.

Characteristics of Stocks Suitable for DCA

Strong fundamentals

Companies should have competitive advantages and be adaptable. Study whether their products or services have ongoing demand.

Consistent profitability history

Check net profit and profit margins over the past 3-5 years. Companies with increasing or stable profits are a good sign.

Dividend payment history

Companies with a history of regular dividends demonstrate sufficient cash flow and can provide returns to shareholders.

Balanced debt structure

Excessive debt can lead to repayment issues and increase risk. Review debt-to-equity ratios and compare with industry peers.

Industry growth aligned with future trends

Businesses based on future-oriented trends (such as renewable energy, health tech, electric transportation) have high growth potential.

Example Calculation of DCA Effect

When an investor invests 3,000 THB monthly for 12 months with fluctuating stock prices:

This example shows that although the year-end closing price is 15 THB, the investor’s average cost per share is only 9.67 THB. If they had invested a lump sum of 36,000 THB at the end of the year at 15 THB, they would get only 2,400 shares, which is 1,540 shares fewer than using DCA.

Securities Firms and Conditions for Opening DCA Accounts in 2025

The Thai stock market has many securities firms offering DCA services, each with different conditions:

Siam Parnich (SCBS) offers a minimum investment of 2,000 THB via Settrade DCA Order, covering SET 100, TDEX, and BMSCITH stocks. Fee: 0.157% if ordered online.

SBI Thai Securities starts at 1,000 THB, focusing only on SET 100 stocks. Commission: 0.075% for Cash Balance accounts.

Phillip Securities offers flexibility to choose 20 stocks from a list of 36 recommended. Investment of 1,000 THB/month. Fee: 0.257%.

Kasikornbank (KS) requires a minimum of 5,000 THB per transaction, supporting SET 100 and ETFs. Fee: 0.157-0.207%, depending on account type.

Nomura Phatthanasin minimum investment of 1,000 THB, focusing on leading stocks in CNS list. Fee: 0.25%.

KTB (KTBS) offers KTBST smart DCA starting at 1,000 THB, covering SET and mai stocks. Fee: 0.25%.

Bualuang (Bualuang) requires 5,000 THB/month, investing in BMSCITH (MSCI Thailand Index), BSET100 (Top 100 companies), and E1VFVN3001 (Vietnam stocks). Fee: 0.30%.

Maybank Kim Eng minimum investment of 5,000 THB, focusing on SET50 and SET100. Fee: 0.15%.

Krungsri (KSS) requires 2,000 THB per week/month, focusing on SET 100 stocks. Fee: 0.15%.

6 Recommended Stocks for DCA Beginners

PTT - PTT Public Company Limited (

A national energy company involved in mining, refining, and distribution. Fully integrated and highly stable. Has a long history of regular dividends, suitable for long-term investors.

) CPALL - CP All Public Company Limited ###

Operator of 7-Eleven stores in Thailand with over 13,000 branches. Also manages distribution centers and wholesale businesses. Continues to grow steadily and remains profitable despite changing consumer behaviors.

( SCC - Siam Cement Public Company Limited )

A leading ASEAN company operating in three segments: cement and building materials, chemicals, and packaging. Over 100 years of operation, stable and adaptable to new technologies.

INTUCH - Intouch Holdings Public Company Limited (

Major investment company in telecommunications, IT, and digital sectors. Major shareholder in AIS, a leading mobile operator. Steady cash flow from subsidiaries makes it a reliable dividend source.

) BBL - Bangkok Bank Public Company Limited ###

A large commercial bank with extensive domestic and international branches. Diverse customer base and strong financial stability. Regular dividends attract investors.

( CPN - Central Pattana Public Company Limited )

Developer and manager of over 30 shopping centers nationwide, including various real estate types such as office buildings, hotels, and residences. Continues to grow and adapt to changing consumer behaviors.

Summary

Dollar-Cost Averaging (DCA) is a proven investment strategy over time. It may not generate the highest short-term returns but helps investors build discipline and accumulate wealth sustainably in the long run. Beginners should select stocks with strong fundamentals, growth potential, and manageable monthly investment amounts to make investing a sustainable part of their personal financial plan.