What is Peso-Cost Averaging Method?July 31, 2014
Peso-Cost Averaging or PCA is short is an investing method wherein you will invest a fixed amount of money at a regular duration over a long period of time. It is actually one common way of investment that is proven to give higher return of investment.
For COL or direct stock investor:
Set aside 5,000pesos a month and invest it in a company that you believe will still be around in the next 5 years. Examples here are Jolibee, PLDT and DMCI.
For FAMI or Mutual Fund investor:
Set aside 5,000pesos a month for your investment and never miss a month for this one. Do it for the next couple of years in investing.
Tip: Choose the right company where you will buy stocks or will invest your money.
Based on experience, the Peso Cost Averaging Method is a secured way for you to have an ROI. This method is highly applicable for those who are willing to invest long-time. No matter what do not skip a month for it will highly impact your returns.
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Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at www.izzaglinofull.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at email@example.com