It is tempting to invest a huge sum when the markets are soaring. At the same time, predicting the peaks and
troughs of the market is difficult even for experienced managers. Instead of adopting a wait-and-see strategy
when markets are falling, investors could choose for cost-averaging: investing a specific sum at regular intervals
regardless of NAV price.
Say for example, you choose Panin Dana Prima,
one of our equity funds, and plan to invest IDR 5 million per month. The table below illustrates that you will
end up buying more units when the NAV is low – and fewer when price rises.
* For illustrative purposes only. Not intended to represent or predict the performance of Panin Dana Prima .
Cost-averaging does not guarantee profit or eliminate risk, but it could lower your average cost per share over
Investing on a time schedule lets investor take advantage of market corrections without worrying about when
they will occur. Before adopting this strategy, investors should consider the ability to commit to a specific
time horizon or changing market conditions.