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What is Peso-Cost Averaging Method?

Friday, August 1, 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.

As a beginner in the investing field, this PCA is what I actually do. Every month I pay a fixed amount to my FAMI SALEF account through Metrobank Direct. Read here. And  I plan to do this for the first year of my investment. For the next year I am aiming to top up my investment double my monthly payment thus, resulting to higher yields.

Peso Cost Averaging is actually dubbed as the safest way of investing by financial scholars.

Here's an example of how you can do the Peso-Cost Averaging 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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5 comments on "What is Peso-Cost Averaging Method?"
  1. hi izza, (i dont know your real name). May special procedure/applocation ba ang Peso cost averaging sa FAMI
    or you just simply make an additional investment every month? :)

    1. You got my blog name right... Izza. :) Wala namang special procedure. I suggest open a Metrobank Direct account para mas mabilis mo siyang magawa. Ako kasi I automatically invest a postion of my salary dun sa FAMI every 17th of the month. Then same amount lang siya every month. Hope I answered your question :)

  2. Ah okay, wala kasi akong Metrobank account, direkta na lang siguro ako muna magbabayad sa Metrobank ng addtl ko sa FAMI. Thank you very much :)

    1. Try to apply dear. Madali lang naman eh. Open a Metrobank ATM or any of their products via going to a nearest branch to you. Then apply online. At least di ka na pupunta sa bank pa. Automatic payment na agad.

  3. Thanks, I'll try that. Sa ngayong nakikisuyo ako sa kasamahan ko pati sa pagbabayad ng metrobank credit card since malapit lang ang metrobank sa amin and daily sya nagpupunta sa bank. Thanks ulit :)