The Investment Strategy of Dollar Cost Averaging with Trading Rule of Stop-profit and Add-up -- Evidence from financial stocks in Taiwan

• Main Authors: Hsiu-Wei Wu, 吳綉微
• Other Authors: 許績宇
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/k693m6

碩士 === 樹德科技大學 === 金融系碩士班 === 106 === The purpose of this thesis is to compare the rate of return of different investment strategies under four financial institutions, Hua Nan Bank, Chang Hwa Bank, First Bank, Taiwan Cooperative Bank. The data used is from Taiwan Economic Journal dataset from 2007/01/01 to 2017/06/30. Five types of investment models includes annual dollar-cost averaging, annual value averaging, monthly dollar-cost averaging, monthly value averaging, and major event single investment strategy. First, we calculate the total rate of return of five models and then compare the average rate of return, IRR, and annualized return of five models with inflation rate plus fixed rate. Our results show that, first, the performance of First Bank is ranked the first with respect to the total rate of return, while Chang Hwa Bank is ranked the second. Secondly, with respect to the overall performance of five modes, the Major event single investment strategy is the best. However the differences are not significant. Lastly, all types rate of return for all institutions are better than that of the inflation rate plus fixed rate (2.58% in average), in the long term.