Finance

Year-by-year

YearContributedGainBalance
134,0001,46135,461
258,0004,70362,703
382,0009,85391,853
4106,00017,044123,044
5130,00026,417156,417
6154,00038,127192,127
7178,00052,337230,337
8202,00069,221271,221
9226,00088,967314,967
10250,000111,775361,775
11274,000137,860411,860
12298,000167,451465,451
13322,000200,793522,793
14346,000238,149584,149
15370,000279,800649,800
16394,000326,046720,046
17418,000377,210795,210
18442,000433,636875,636
19466,000495,691961,691
20490,000563,7701,053,770

Value after 20 years

0

Grew 2.15× your contributions

Total contributedAED 490,000
Investment gainAED 563,770
Final balanceAED 1,053,770

DCA vs Lump-sum

Same total, invested all at startAED 1,896,145
Lump-sum advantageAED 842,376

Frequently asked questions

DCA is buying a fixed amount of an investment at regular intervals — every month, every paycheck — regardless of price. When prices are high you buy fewer units; when low you buy more. Over time it smooths out your average buy-in price and removes the temptation to time the market.

Mathematically, lump-sum usually wins about 67% of the time (Vanguard's 2012 study) because markets rise more often than they fall. But DCA wins on behavior — it stops you panic-selling in crashes and chasing tops in booms. For most people, the behavior gap matters more than the mathematical edge.

S&P 500 has returned ~10% nominal / ~7% real (after inflation) since 1928. Global equities slightly lower. Plug in whatever you'd be comfortable with as a long-term assumption — and use a number 2-3 points lower for any goal you'd hate to miss.

Yes. Common routes: international brokers (Interactive Brokers, Saxo, Sarwa), local platforms (ADCB Securities, EFG Hermes, NBD Markets), or direct from a US broker if you can fund USD. You'll need passport/residence visa/Emirates ID for KYC. Withholding tax on US dividends is 30% (or 15% with a W-8BEN form for some treaty rates).

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