Definition
What is systematic investing?
Systematic investing is a repeatable process in which portfolio changes follow predefined written rules rather than forecasts. It is designed to make decisions consistent across changing market conditions, while recognizing that no process can eliminate losses or guarantee results.
A systematic process begins with written targets and a defined method for reviewing and changing a portfolio. The goal is not to predict the next market move. It is to apply the same discipline when conditions feel comfortable and when they do not.
Systematic investing involves trade-offs. A process may lag when a narrow part of the market leads, and its results depend on the allocation, implementation, costs, and an investor's individual circumstances.
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This definition is for educational purposes only and does not constitute investment, tax, or legal advice. Rules and thresholds change; consult a qualified professional about your situation.