Optimization of Stock Investments in Indonesia Stock Exchange: Comparing the Method of Dollar Cost Averaging (DCA) and Lump Sum (LS)

Abstract

The aim of this research is to find out how to optimize stock investment using the dollar cost averaging method and the lump sum method and also to compare the performance between the dollar cost averaging method and the lump sum method based on return results. This research uses a descriptive method with a quantitative approach. This research uses 2 companies with the largest market cap listed on the Indonesian Stock Exchange for the 2021-2023 period. The results of this research found that the lump sum method return in 2022 on BBCA shares reached 22.85% and on BBRI shares 18.19% higher than the return on the dollar cost averaging method on BBCA shares which was only 13.70% and on shares BBRI is only 10.86%. The lump sum method return in 2022 is the highest return between 2021 and 2023. These results prove that the lump sum method is more optimal than the dollar cost averaging method.