Which investment strategy is most associated with mutual funds?

The investment strategy most associated with mutual funds is dollar-cost averaging. This approach involves regularly investing a fixed amount of money into a mutual fund over time, regardless of the fund's price. This strategy helps investors buy more shares when prices are low and fewer shares when prices are high, effectively averaging out the cost per share over the long term. It is particularly appealing to those who want to invest in mutual funds because it reduces the impact of market volatility and eliminates the need for precise timing of the markets.

Mutual funds are designed for long-term investment objectives, making dollar-cost averaging a suitable strategy for investors looking for growth while maintaining a disciplined investment approach. This strategy aligns well with the mutual fund's structure of pooling investor money to buy a diversified portfolio of securities, thereby enhancing potential returns over time while mitigating risks associated with market fluctuations.

Other strategies like short selling, market timing, and speculation typically involve higher risk and may not be compatible with the objectives of most mutual fund investors, who often seek stability and consistent growth rather than aggressive tactics.