Tools
See what cost-averaging a fixed amount into a stock (or the market as a whole) would be worth today. Not financial advice: past patterns don't predict future returns.
Pick a start date at least one period in the past to see results.
Good to know
How peso cost averaging works on the Philippine Stock Exchange, and what this simulation counts.
Peso cost averaging means investing the same fixed amount on a fixed schedule, say ₱5,000 every month, regardless of the price that month. The fixed peso amount buys more shares when the price is low and fewer when it is high, so your average cost per share ends up below the average price over the period.
Not automatically. In a market that mostly rises, investing everything at the start historically beats spreading it out, because the money is exposed for longer. Cost averaging wins when prices fall first and it always wins on behaviour, since a fixed monthly transfer is something people actually keep doing through a crash.
Most Philippine brokers set no minimum beyond the board lot, which for many stocks means a few hundred to a few thousand pesos. The practical floor is the minimum commission: on a very small order the peso minimum can be a large percentage of the trade, so buying monthly rather than weekly usually costs less in total. Work out the fees →
It simulates buying an equal-weighted basket of every tracked PSE company rather than one stock, which approximates the market as a whole. It is not the PSEi itself, since the PSEi is a 30-stock capitalisation-weighted index, so treat it as a broad market comparison rather than an index tracker.
The simulation runs on price history alone. Dividends received would raise a real result and trading fees would lower it, and for a dividend-paying stock those two do not cancel out. Read the output as a price return, not as what your account would have shown. Why total return is the fuller measure →
Because you earn returns on returns you already earned, so growth accelerates the longer it runs. ₱10,000 growing 8% a year is about ₱21,600 after ten years and roughly ₱100,000 after thirty, and almost all of that difference arrives in the final stretch. That asymmetry is why the length of the schedule you set above usually changes the result more than the stock you pick does. Full definition →
No, they answer different questions. Cost averaging is about how you enter a position, spreading purchases over time. Buy and hold is about how long you stay, and its advantage is largely arithmetic: every round trip on the PSE costs a bit over 1% in fees and tax, so money traded repeatedly pays that toll each time. The two combine naturally, which is why a monthly schedule held for years is the common form. Full definition →