What is a common feature of dollar cost averaging?

Dollar cost averaging is a strategy where an investor consistently invests a fixed amount of money at regular intervals, regardless of the asset's price. This method helps mitigate the impact of market volatility since it allows the investor to purchase more shares when prices are low and fewer shares when prices are high. By spreading the investment over time, investors can potentially lower their average cost per share, thereby reducing the risk associated with market timing, which can often lead to losses if market conditions are misjudged.

The other choices do not align with the principles of dollar cost averaging. For instance, investing all funds at once does not take advantage of the benefits of regular, smaller investments over time. Reducing investments over time contradicts the approach, which promotes consistent contributions. Lastly, only investing during market declines goes against the principle, as dollar cost averaging involves a steady commitment to investing at set intervals, regardless of market conditions.