Navigating precarious times with cost averaging

Market volatility can be unsettling. Whether you monitor your portfolio regularly or try to avoid checking it too often, it’s completely natural to wonder whether you should be taking action at any given moment.

Here is a perspective that may provide clarity.

Staying the course

Many investors believe that successful investing relies on identifying the perfect moments to buy or sell. Yet research shows that even experienced professional fund managers struggle to time the market every time.

In reality, long-term value is built not through perfect timing, but through steady and disciplined investing.

This principle is at the core of cost averaging — a practical, time-tested strategy that helps investors remain consistent, especially during uncertain market conditions.

What is cost averaging?

Cost averaging is a strategy where you invest a fixed amount at regular intervals, regardless of how the market is performing.

When prices are high, you buy fewer units; when prices drop, you buy more. Over time, this helps smooth out your average cost and removes the pressure of trying to time the market.

Think of it like your monthly grocery run. You don’t cancel it just because prices went up last week. You show up, you buy what you need, and over time it all balances out.

The upside of dips

This is where cost averaging becomes especially helpful. Market dips may feel uncomfortable, but they allow consistent investors to buy more units at better prices. A downturn isn’t always a setback — it can be a quiet opportunity for long-term growth.

One way to take advantage of this is by investing in funds. Some have automatic subscription arrangements that monthly contributions effortlessly, thereby letting opportunities work in your favor.

For example, the Metro Money Market Fund allows you to start investing with just PHP 1,000 starting April 1, and you can set up an automatic subscription arrangement easily.

To sum it all up, consistency is key, and cost averaging makes it even more effective.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)