| Summary: | 碩士 === 實踐大學 === 財務金融學系碩士班 === 103 === In comparison with extensively adopted dollar-cost averaging, which regularly invests a constant amount, the core concept of value averaging is to periodically increase a particular amount in value for invested mutual funds. Moreover, when value averaging is adopted, the investing amount of each period varies with changing in market conditions and partial investment funds even can be withdrawn in certain circumstances. More specifically, value averaging focuses on holding value rather than the investment cost for a given mutual fund. Accordingly, with using value averaging the average investing cost per fund unit can be expected to further reduce, and thus yield more excellent returns than those resulted from dollar-cost averaging strategy. To this end, this study conducts an empirical study that compares and analyzes the investment performances between two value averaging strategies and two dollar-cost averaging strategies based on a sample comprised of 118 Taiwanese stock mutual funds. The empirical results show that the investment performances acquired from value averaging strategy truly have been the significantly superior to dollar-cost averaging strategy, especially applying in small-high-tech stock mutual funds with middle and long-term investment. Additionally, Sharpe ratio and Sortino ratio are taken here as the risk adjusted evaluation indexes. The empirical results obtained from these two indexes also verify that value averaging strategy is evidently better than dollar-cost averaging strategy. In summary, value averaging strategy indeed is helpful to boost the investment performance and capital return of stock mutual funds. Meantime, the unfixed value averaging strategy is most excellent in performance than other three strategies. This study work found here should be capable of providing fund investors and assets management institutes with a better investment strategy selection.
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