Cost Average Effect

Oct 19, 2006

Example number 1:
You invested 10.000 Dollar in the year 1985 into a tempelton fund and waited 20 years. Result can be seen at many forums and stock plattforms

Example number 2:
In 1985 you had no 10.000 Dollar, but only 100 Dollar a month. You invested this 100 Dollar each month for 20 years.

How big will the difference be between example 1 and 2 ?

*** Background.
If a "share" will cost 100 Dollar, you will get 1 share for 100 Dollar. Next month share is down to 50 Dollar, you will get 2 shares for your monthly 100 Dollar. Next month share is up at 200 Dollar, you will get only a half share for your 100 Dollar. Its called cost average effect.

Tool should allow "play arround", to simulate various scenarios, talking into account growth rate, time period, monthly investment, fluctuation of a theoretical share. Idealy we would love to " import" e.g. famous fund history (eg. Tempelton, Pioneer) etc. to see how investment would have developed when a steady monthly payment would have been made.

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PH06024000 1 2499.2
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PH06024000 1 2240.7
PH06024000 1 2259.4
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[URL]

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