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 promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.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