Author Topic: Peso Cost Averaging- Do you actually do it? (Read 16889 times)

wintan2006 · « **Reply #60 on:** Jun 17, 2008, 04:10 PM »

Kikations,by investing 8333 a month for 5 yrs will amount to 500k,that's right but it doesn't mean that your MF will have a value of 500k by then because it will depend on the NAVps by the time you want to redeem your money.If by that time the NAVps is high then you're lucky.When you invest in mFs it doesn't mean you have to wait for 5 yrs, kung na meet mo na ang goal mo then you can redeem your money,let's say nag set ka ng 20% growth sa fund mo,pwede mo na sya ilabas.Kasi pag umakyat yan bababa uli ang NAV,then you will wait again God knows when para syang gulong akyat baba akyat baba.so how much should you invest every month?it depends how much available cash you have in your pocket.Sana na get mo explanation ko

rael · « **Reply #61 on:** Jun 17, 2008, 10:29 PM »

@kikations, i think what you're intending to do with "perpetual" cost averaging is to be able to regularly invest and regularly harvest monthly 5 years hence, tama po ba? i think that's a good idea. note that MF time horizon often advertised is around 5 years. meaning, the trust funds are confident that given that timeframe, they will be able to make your money appreciate. hopefully even with a bear market in between.

but, as sir wintan mentioned, the navps doesn't go in one direction only. so it might be best not to treat your monthly "harvest" as living allowance.

leela · « **Reply #62 on:** Jun 18, 2008, 08:17 AM »

question (ewan ko kung tama question ko). using the cost averaging, let's say my average is P10/share. pag niredeem ko ba at P11, ibig sabihin kumita na ako?

cjap10 · « **Reply #63 on:** Jun 18, 2008, 08:22 AM »

I think depende kung ilan ang shares mo kasi ibabawas pa yung entry and/or exit fees kung meron. Kung konti lang tapos mas mataas pa yung entry/exit fees lugi ka pa rin...

wintan2006 · « **Reply #64 on:** Jun 18, 2008, 12:00 PM »

Kikation,depende kasi yan sa time ng pagpasok mo ng funds yung iba nga 2 yrs lang ang laki na ng kita kasi they entered when the NAVPS was low so inde pwedeng sabihing 5 years may kita ka talaga,yung iba dapat 7 years bago kumita kasi nagkataon na mataas ang NAV when they started investing.

Leela,yeah kumita ka pero just like what cjap said pagbinawas pa ang entry and exit fee wala na matitira dyan.So it's better to set the the percentage at 18 to 20% growth.

leela · « **Reply #65 on:** Jun 18, 2008, 02:07 PM »

^thanks, wintan. that's what i'm looking for--a good number or percentage para alam ko when's the best time to sell.

happyknappy · « **Reply #66 on:** Jul 29, 2010, 02:39 PM »

DonT · « **Reply #67 on:** Jul 29, 2010, 03:58 PM »

^Quite a lengthy but comprehensive take on Php Cost Averaging...

Let's say you have 10K every qtr or every month to invest...PCA is the way to go. Very few people have a lump sum of 100K to invest at one time..every single year.

Too bad I only knew this concept lately.

ms.rain · « **Reply #68 on:** Jul 30, 2010, 01:46 AM »

yes. and para sure na sure that i will stick to my plan, ginawa kong auto debit from my salary. wala na talaga akong ligtas!

allanmm13 · « **Reply #69 on:** Jul 30, 2010, 01:23 PM »

Quote from: ms.rain on Jul 30, 2010, 01:46 AM

yes. and para sure na sure that i will stick to my plan, ginawa kong auto debit from my salary. wala na talaga akong ligtas!

Asa automode ang success ng PCA. Kudos!!

bauer · « **Reply #70 on:** Jul 30, 2010, 03:23 PM »

Quote from: leela on Jun 18, 2008, 08:17 AM

question (ewan ko kung tama question ko). using the cost averaging, let's say my average is P10/share. pag niredeem ko ba at P11, ibig sabihin kumita na ako?

kung in one year lang, yes kumita ka kasi 11/10 = 10% interest earned pero kung after 5 years pa 10%/5 = 2% interest earned average per year, hindi ka kumita ng maganda due to inflation.