What are the benefits of peso cost averaging?
·● Mitigates the impact of market volatility
Over time, investing a fixed amount of money at regular intervals, regardless of the asset’s price, allows you to maximize returns and minimize risks. This strategy helps you average out the cost of your investments, lowering the overall price per unit and minimizing the impact of short-lived price changes in the financial assets where your fund invests. Doing so helps your investment ride out the ups and downs of the market.
● Empowers you to invest confidently without needing to master timing the markets
With peso cost averaging, you can invest consistently without having to monitor market trends, track economic news, or analyze financial data—making your investing journey simple and less stressful regardless of market and economic conditions.
● Helps you learn how to be more disciplined with your money
When you have a regular schedule for investments, you are motivated to make investing a habit. Knowing that you have something to save up for or work towards can fuel you to manage your budget better. Investing regularly can also lead to long-term investing, which can increase your potential for financial growth.
● Allows you to gain earnings steadily
Slowly but surely, your investments can grow over time. Peso cost averaging is a long-term strategy, helping you see your earnings grow over time with moderate or low risks.