A simple investment strategy for all market conditions. Focusing on consistency for long-term growth.
If the article is too long, you can choose a topic to read:
- What is DCA?
- The recent situation of the Thai stock market
- DCA as the white knight in volatile conditions
- Who is DCA suitable for?
▶️What is DCA?
DCA (Dollar-Cost Averaging) is an investment strategy in which the same amount of money is invested every month on a predetermined date. For example, investing 10,000 baht per month on the 5th of every month. The key rule is to invest consistently, regardless of market conditions—whether the market is up, down, or moving sideways. Simply put: buy in all situations.
▶️The recent situation of the Thai stock market
- At the beginning of 2025, when the index started to pull back, investors moved in to “pick up cheap stocks,” and of course many ended up with losses as the index dropped sharply and slid more than -23%.
- Around May, when the market began to recover, investors thought, “The index has passed its bottom—I need to invest quickly / I don’t want to miss out.” In the end, they also suffered losses because in June the recovering index fell back to an even lower level.
- Then in June, when the index fell below the previous low for just one day, most investors likely thought, “The index has made a new low—I need to sell and cut my losses.” If they panic-sold and completely exited their portfolios, it would have been a great pity, because after that the index rebounded strongly and continued rising through the end of the year.
You’ll notice that when volatility is very high, speculation or investing becomes extremely difficult, because there are always questions such as whether this is the right time to invest and whether one should enter the market now.
▶️DCA as the white knight in volatile conditions
- At the beginning of the year, when the market started to pull back, investors using a DCA strategy did not overthink it, because they were already investing gradually every month. Their portfolios might have shown some losses, but the lower the market went, the more it was seen as an opportunity to buy assets at progressively cheaper prices.
- In May, when the market began to recover, they continued investing through DCA without worrying about missing the rebound or fearing that they might be left behind. Even if the index fell back again, there was no concern, as they were already continuously buying (accumulating at lower prices).
- In June, when the market made a new low, they were still not worried, since they continued to invest gradually as planned, and were then able to fully benefit when the index rebounded.
Source: Kasikorn Asset Management Co., Ltd. as of January 12, 2026
Remarks: Expected returns are not guaranteed. Investors may experience returns higher or lower than the expected returns shown in the table, depending on actual investment conditions. The expected returns and the expected volatility are based on an assessment of future economic conditions over a 10-year horizon, which may affect the return projections of each asset class.
It can be observed that with a DCA approach, market timing is taken out of the equation. Because the strategy enforces continuous buying at each stage, it results in a very favorable average cost—the more the market declines, the better the average cost becomes. When the index rebounds, this can lead to solid gains. While the returns may not be the absolute highest, since costs are averaged across multiple investments, this is offset by a key advantage: investors gain peace of mind and do not need to worry about stock market volatility. This makes the strategy particularly well suited to the Thai stock market
▶️Who is DCA suitable for?
As mentioned earlier, DCA investing avoids market timing and focuses on consistency over time. Therefore, it is suitable for investors who do not have much time to closely follow the market but have regular monthly income, such as “salaried employees” (the regular saver) and those who are “too busy to watch the screen.” In addition, not trying to time the market helps eliminate emotional decision-making, making DCA appropriate for beginner investors as well—especially those who are “new investors with unstable emotions.” Finally, because DCA gradually lowers the average cost while continuously accumulating shares or investment units, it is also suitable for “dividend hunters.”
Ultimately, the core of DCA lies in “consistency,” “time,” and “the courage to stay invested.” It means investing continuously in every market condition—whether the market is rising or falling dramatically. Dollar-cost averaging helps instill long-term discipline. Once market prediction is set aside and the focus shifts solely to consistency and time, investing no longer becomes a source of stress. Instead, it turns into a systematic way to gradually build wealth and achieve truly sustainable long-term growth.
⚠️ Warning: Buyers should understand the details of coverage, conditions and risks before making a decision to purchase insurance every time.Warning: Investments are risky. Investors should study products, return conditions, risks and tax benefits in the investment manual of such funds before making a decision to invest.
🏷️Chanisa Changching, Complex Type 1 Investment Consultant, License No. 127922
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