Investing can feel intimidating, especially if you’re just starting out and don’t have a huge amount of money to put in. But here’s the good news: you don’t need to be rich to start investing. There’s a simple and proven strategy that works even for beginners—Peso Cost Averaging (PCA).
In this article, let’s break down what Peso Cost Averaging is, how it works, and why it might be the easiest way for Filipinos to start building wealth through stocks and funds.
What is Peso Cost Averaging?
Peso Cost Averaging (PCA) is an investment strategy where you regularly invest a fixed amount of money in a stock, mutual fund, UITF, or ETF, regardless of whether the market is up or down.
Instead of trying to time the market (which even professional traders struggle with), you invest consistently and automatically—say, every payday or every month.
Over time, this allows you to buy more shares when prices are low and fewer shares when prices are high. The result? Your cost per share averages out, reducing the risks of market volatility.
Example of Peso Cost Averaging
Let’s say you invest ₱1,000 every month into a stock or mutual fund:
- January: Price is ₱10/share → You buy 100 shares.
- February: Price drops to ₱5/share → You buy 200 shares.
- March: Price goes up to ₱20/share → You buy 50 shares.
By the end of 3 months, you’ve invested ₱3,000 and bought 350 shares. Your average cost per share is only ₱8.57, even though the stock reached as high as ₱20.
This is the magic of peso cost averaging—you benefit from market ups and downs without stressing over timing.
Why Filipinos Should Consider Peso Cost Averaging
- Beginner-friendly – No need to master charts or market timing. Just invest consistently.
- Budget-friendly – You can start with as low as ₱500 or ₱1,000 depending on the platform.
- Automatic and disciplined – Many platforms allow auto-debit so you don’t forget to invest.
- Proven long-term strategy – Historically, markets grow over time. PCA lets you ride that growth.
- Stress-free – No need to worry if prices are up or down this month—you invest anyway.
Where Can You Do Peso Cost Averaging in the Philippines?
Filipinos can apply PCA in different investment platforms, including:
- Stock Market (via COL Financial, FirstMetroSec, BDO Nomura, etc.)
- Mutual Funds & UITFs (Sun Life, ATRAM, Security Bank, etc.)
- Pag-IBIG MP2 (you can set monthly contributions for 5 years)
- GCash GFunds and Maya Funds (start with low amounts, automated deductions possible)
Tips to Maximize Peso Cost Averaging
- Set a fixed schedule – Commit to investing monthly or per payday.
- Invest an amount you can sustain – Better to invest ₱1,000 monthly for 5 years than ₱10,000 once.
- Think long-term – PCA works best when you give it time (5–10 years or more).
- Don’t panic-sell – Market dips are actually good for PCA because you buy more shares cheaply.
- Reinvest dividends – If your investment pays dividends, reinvest them for compounding growth.
Blogger’s Corner
Peso Cost Averaging is the kind of strategy that works especially well for busy Filipinos who don’t have the time (or energy) to trade stocks daily. It’s simple, consistent, and effective.
Whether you’re investing through GCash GFunds, Maya Funds, or directly in the stock market, PCA makes investing doable even with small amounts.
The bottom line: don’t wait until you have a huge amount of money. Start small, invest regularly, and let time and consistency do the work for you.