Tag Archives: investing

Too many Mutual Funds?

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Inquirer:

 

Growth

Growth (Photo credit: AdamSelwood)

 

I have invested on the following at BPI :

 

1. BPI Balanced Fund

 

2. BPI Equity Value Fund

 

3. BPI Global Phil Fund  ( $)

 

4. BPI Phil Dollar Bond Index Fund  ( $)

 

5.ALFM Dollar Bond Fund ( $)

 

6. Phil Stock Index Fund ( Mutual fund )

 

7. ALFM Growth Fund ( Mutual fund )

 

8. Odyssey Diversified Capital Fund

 

9. Odyssey Diversified Balanced Fund

 

10. Odyssey Phil Equity Fund

 

11. Odyssey Phil High Conviction Equity

 

12. Odyssey Asia Pacific High Dividend Equity Fund ( $ )

 

13. Odyssey Phil. Dollar Bond Fund ($)

 

 

 

I don’t have any professional basis why I have chosen and put my money on the above investments . I want to know if what I did was right and I want to know if I should consolidate some of the investments into fewer investments / simplify and group some of them into one  instead of having 13 .

 

 

 

What do you suggest ? Do you have other investments( UITF or Mutual fund )  other than BPI to invest ?

 

 

 

I am asking your advice what to do .

 

 

 

 

 

 

 

 

 

Guita of Colayco Foundation:

 

First, it is good that you are invested in many different funds. This helps you diversify your risks. However, I need to point out areas of caution:

 

 

 

Thought BPI is a reputable and good performing company, by investing only w/ BPI you are exposing yourself to the following risks:

 

1. What if something happens to BPI / BPI Asset Management?

 

2. BPI Asset Management has a certain investment style and philosophy which is applied to all the funds. Investing w/ a different fund manager is also prudent.

 

 

 

In addition, several of the funds are very similar to one another – you are exposing yourself to the same risks.

 

 

 

For example the following are all Philippine Equity Funds:

 

2. BPI Equity Value Fund

 

6. Phil Stock Index Fund (Mutual fund)

 

10. Odyssey Phil Equity Fund

 

11. Odyssey Phil High Conviction Equity

 

 

 

Invested in one stock market by the same fund managers, your savings are exposed to the same risks and it’s growth dependent on the same skills/knowledge of the fund managers. The only thing that differentiates these funds are the guidelines that govern the management of the fund and the asset base of the fund.

 

 

 

The same is true for:

 

1. BPI Balanced Fund

 

7. ALFM Growth Fund ( Mutual fund )

 

 

 

and

 

4. BPI Phil Dollar Bond Index Fund  ( $)

 

5.ALFM Dollar Bond Fund ( $)

 

13. Odyssey Phil. Dollar Bond Fund ($)

 

3. BPI Global Phil Fund  ( $)

 

 

 

For the above – Of course performance depends on the management of the individual funds. But risk wise, this exposes you to foreign exchange or currency risks. Whether the fund is invested in Asia vs. US or Europe also matters.

 

As a rule of thumb however, we recommend that you invest in the currency you earn or spend in as converting PHP-USD and vice versa just to invest starts you off in a negative position

 

 

 

Take note of the following:

 

1. What is your purpose for each fund? Why are you invested there?

 

i.e. I invested in Phil Stock Index Fund ( Mutual fund ) for my retirement…

 

Match a fund (or 2 funds) with a specific purpose – or use for the money (and its growth). You don’t need 13 funds. Consolidate based on purpose.

 

 

 

2. Consider other fund managers. The performance of a fund is heavily dependent on the skill of its fund managers. BPI Asset Management is consistently one of the best. But there are other fund managers that have proven that they are equally if not more adept at growing and protecting their funds. A full list can be found for MFs on http://www.pifa.com.ph and for UITFs onwww.uitf.com.ph

 

 

 

3. Consider other investment instruments. Growth is important but so is protecting your wealth. While other instruments may have less return they are also less risky. Depending on your needs in the future, age and risk profile you can study long term savings plans such as (pension plans or endowment plans), certain tips of investment linked insurance products and government securities.

 

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Tanong ng Seafarer

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English: The vehicle and passenger ferry at an...

English: The vehicle and passenger ferry at anchor in Belfast Lough. The ferry normally works on the Larne-Fleetwood route but a recent reduction in weekend sailings has seen the vessel usually laid up at Belfast. On the weekend of 16th/17th May, rather than dock at Belfast, the ferry anchored in Belfast Lough just off Bangor. (Photo credit: Wikipedia)

Inquirer:

kindly advice me how much should i save a year/mothly. I’m a seafarer which have 4months contract, im earning a net pay monthly of P300,000. i dont have any investment, life/pension plan im at age of 40. Please advice me.

Guita of Colayco Foundation

Do you have a family/children? If yes you should get yourself insurance (separate from what your company provides). You should also have an emergency fund in case something happens to you, your family or your possessions.
Investing is something you should seriously study in the next few months.
1. Use the retirement calculator - Computing for Your Retirement Target This will help you identify how much you need in order to stop working and still maintain your chosen lifestyle
    Option A: use your salary Php300K as is in the portion stating gross monthly salary
    Option B: identify how much you need/want every month to live/survive/enjoy life and use this figure instead of your gross monthly salary.
2. Study investment instruments
- join our upcoming seminars – visit www.colaycofoundation1.com/programs/public-seminars/
- Read up about investments on www.franciscocolayco.com and in the FAQ section ofwww.colaycofoundation.com
3. Start investing!
Learn more about and invest in mutual funds - www.pifa.com.ph
Consider joining KsK Coop - www.kskcoop.com and email joel@colaycofoundation.com for more info.

Paano kumita sa Mutual Funds?

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Stock market of Brussels

Stock market of Brussels (Photo credit: Wikipedia)

Inquirer:

tanong ko lng po s paanong paraan po b kumikita ang mutaualfund gusto ko po kc malaman ang kabuoan ng mutual funds at para mlaman din ang computaion how it earns

Guita of Colayco Foundation:

Mutual funds are companies of cash – wherein the cash is used to purchase financial assets – securities like stocks, government securities and corporate bonds. When you invest in an MF, you purchase a SHARE of the MF according to a specific price called net asset value (NAV). The NAV changes per day as the securities owned by the fund are bought and sold in the financial markets (traded.) Mutual funds are a good investment option for long-term growth. Average annual returns for mutual funds are between 9-20%.
Mutual funds are for you if:
- you have at least Php5,000 to invest
- you can keep your money invested for AT least 3-5 years.
- (highly recommended but not required) you can make additional investments on a regular basis
Mutual Funds are managed by mutual fund management companies and not banks. You can check www.pifa.com.ph for a list of available mutual funds and their current performance.
Learn about mutual fund investing strategies to achieve your Php1M, join Colayco Foundation’s InvestAbility: Mutual Funds Seminar. Click here for our schedules. 
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Insurance, Investing – Financial Freedom

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Better City Better Life

Better City Better Life (Photo credit: Wolfgang Staudt)

 

Inquirer:

 

ask lang po ako ng advice. i had the chance to talk to one of the financial consultants of INSULAR LIFE. she shared a promising and guaranteed investments. in accordance to my own research, investments are unpredictable. how can i know if INSULAR LIFE is a good investment house and not a scam. sir, kung alam nyu po itong company na ito at may negative feedback po kayu i’l keep this confidentially.naka-pm naman po tayo e.gusto ko lang talagang matulungan nyu ako.mahirap na po kung isusugal ko yung hard earned money ko. tnx poh!God bless yu! ;)

 

 

 

Guita of Colayco Foundation

 

First of all Insular is an INSURANCE company and not an investment management company. It is a legitimate insurance company. But if you compare the returns of its investments with others, there are others that are better. The primary reason for the difference is that it is an insurance company and not an investment company.

 

 

 

You are probably being sold an insurance product linked with an investment. Answer the following for me:

 

1. Do you have insurance? If yes, how much is the total coverage? Are you finished paying for it?

 

2. Do you have dependents?

 

3. Do you have other investments?

 

4. Do you have savings?

 

5. How much can you save every month?

 

 

 

Answers to these questions will help identify what instruments you can look into further.

 

 

 

Inquirer:

 

cge po matutulungan nyu po ba ako kung anu ang pd saking investment + insurance house… i am a bachelor with 15k income monthly i save 10%, 10% for the church; 5% for my mutual fund; 5% for my family, 70% for my other expenses..

 

 

 

Guita of Colayco Foundation

 

How much do you have invested in mutual funds? What type of mutual fund are you invested in?

 

 

 

Inquirer:

 

i started 5k then 1k monthly. sa Philam Asset Management Investment po ako. nag iisip pa po ako ng other investment house z po sayang ang pera ko sa bank ang baba ng tubo..ala naman po akong experience sa business..3 months ago na po ako sa PAMI. yung insurance naman po.papasok palang ako sa Asian life. shoulder po yun ng work ko.

 

 

 

Guita of Colayco Foundation

 

Insurance is for financial protection. It is technically not an investment. Don’t put too much of your money/savings in insurance products. The return that they project will be lower than the potential return of your investments from mutual funds or other ownership investments.

 

It would be good to invest in another MF company so you can diversify, included in the top 4 MF management companies are:

 

- First Metro Asset Management

 

- BPI Asset Management

 

- Philequity Asset Management

 

- PhilAm Asset Management

 

 

 

Other investments:

 

1. Stocks are something you can consider but it will require more investment into learning and understanding how it works.

 

2. Real Estate is a good investment. Don’t purchase condominiums unless you can manage renting it out and maintaining it. Instead, look for property in growth centers (Cebu, Batangas, Laguna, Davao, CDO, etc.).

 

3. Government Securities. While the returns may not be very high it’s a good investment to consider as it is the least risk.

 

 

 

 

 

Inquirer:

 

citisec is for investing on stocks, how about for investing on mutual funds? can i also do that online? Where can i find list of fund manager for mutual fund?

 

 

 

Guita of Colayco Foundation:

 

For investing in mutual funds there is no ‘online’. But you can make fund transfers to their bank accounts when you want to invest. And when you want to redeem your investment they credit to your bank account. List of Mutual Funds can be found on www.pifa.com.ph

 

 

 

 

 

Inquirer:

 

regulated po b ang mutual fund? How risky po ung mutual fund compare sa buying stocks? Are there cases po b na si fund manager bigla nlang nawala kasama ung investments? How secure po ung investment sa mutual fund?

 

 

 

Guita of Colayco Foundation:

 

Mutual fund companies registered with the SEC. Mutual funds are less risky than stocks because mutual funds provide you with instant diversification. Since you do not have the time to learn more about this instrument i recommend you read through this website www.pifa.com.ph and get in touch with a sales agent of one of the funds and they can answer your questions about mutual funds. Just remember that their goal is to get you to invest.

 

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Investing and OFWs

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Abu Dhabi Marina

Abu Dhabi Marina (Photo credit: Ghassan Tabet)

 

 

Inquirer:

 

I am currently working in Abu Dhabi UAE as an OFW. I am very much interested in investing in a mutual fund while I’m still young to ensure not just my financial security but my family as well. What should I do? What will be my first step in doing such investment? and does your foundation also caters investment?.

 

 

 If you’ve read Mr. Colayco’s books then you have taken step 1 to becoming wealthy. It’s good that you want to secure your financial freedom as early as now.

 

 

First thing to do is identify your goals – there are 3 basic things to prepare for
- protection – these are ‘just in case’ funds, you want to be ready for emergencies and calamities
- life goals – this is whatever you want – your future child’s education, yearly vacations, car, house, etc.
- retirement – this is for the day in the future where you will no longer work (hopefully it’s by choice and not because of other reasons like illness).

 

 

You need to be specific. What? When? How Much? and How Much by When? (this last one refers to how the price/cost of what you want is affected by inflation also known as Future Value). The Pera Palaguin Workbook can help you with calculating Future Value and financial planning.
Second is start saving. Set an amount you can save every month and set it aside for investing. Mr. Colayco recommends 20% of your income. If that’s a bit too high, then save what you can and strive to increase it every year.
Third is grow it through investng. Options in the Philippines and Australia are different so you will need to check what are available in both.

Before investing in any instrument, it’s important that you know and understand the risks of investing and growing your money. All legitimate investments are good but not all of them match the investor. We have an upcoming webinar this April which can give you both a good foundation in your financial planning and investing. It will be on April 19, Friday 6-9PM Philippine Time. Learning fee is USD25. Do let me know if you’d like to join us so I can send you details. Pisobilities: Wealth Within Your Reach (Webinar)

 

Colayco Foundation does not sell any investment instruments. I can refer you to KsK Cooperative – an investment coop established to help OFWs achieve their wealth goals. 

 

 

 

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Trust Fund for my Kids

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Inquirer:
ok lang mag pasok ng pera sa trust fund para sa mga anak ko?

Guita of Coalyco Foundation:
Yes that is a good goal. Be sure however that you’ve got the basics covered: insurance, emergency funds and cash reserves. While you are saving for your children be sure to also set aside and invest money for your retirement

Can you recommend a stock investing book for beginners?

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Inquirer:
ano po magandang book for stock market for beginner…thanks

Guita of Colayco Foundation:
Try Building Wealth With Stocks by the Philippine Stock Exchange available for free download on http://www.pse.com.ph If you want something more comprehensive the Intelligent Investor by Benjamin Graham is a good book to start with. Just remember that the US Markets are different from the Philippine Market.

 

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Discover your options for taking hold of your personal finances, growing out of debt, and building wealth through Colayco Foundation’s publications and training.
Upcoming Seminars:
July 27 (Friday), 1-5pm            Pera Mo Palaguin Mo Workshop
Aug 4 (Saturday), 1-5pm          Pera Mo Palaguin Mo Workshop
Sept 1 (Saturday), 9am-12nn    InvestAbility: Stock Market
Sept 1 (Saturday), 2-5pm         InvestEd: Analyzing Stocks
Email renzie@colaycofoundation.com or SMS 0917 808 8857 for more information and to check if you qualify for BIG discounts!
Avail free personal finance articles on www.colaycofoundation.com
We look forward to building One Wealthy Nation with you!

Clarification: Investing in Insurance

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Inquirer:
ask ko lng puh kung ok lng puh bang mag invest s mga life insurance???
like ng philam life???

Guita of Colayco Foundation
Paalala lang, ang insurance ay HINDI investment. ito ay financial protection-prinoprotektahan mo ang kakayahan mong kumiti para kung sakali na may mangyari sa iyong hindi mo inaasahan mayroon ka (at ang iyong pamilyang) matatanggap na pera katumbas ng iyong buwanang kita hanggang sa panahon na makaahon ka.
Ang PhilamLife ay lehitimong kumpanya, suriin mo kung ang mga produkto nila ang tama para sa iyo.

How to avail RTBs?

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Inquirer:
How does one avail RTBs?

Guita of Colayco Foundation:
You should get in touch with a government securities eligible dealer. A list can be found on http://www.treasury.gov.ph

Inquirer:
ngpunta na po kami sa BDO cebu sm branch.. mas priority dw nila BIG clients.. sa PNB fuente cebu nmn wala dw silang alam sa minimum na 5k dahil ang myron sila 250k lng. pano ba talaga mgavail.

Guita of Colayco Foundation:
For banks you need to speak directly with the Bank Branch Manager or their Trust officer – they do not encourage small investors because the paperwork they have to do is the same whether you are a small/big investor. You need to have a personal relationship with them. Insist that you know there is/was an RTB offering.
Try getting in touch with VicSal Investment, they cater to small investors or other non-bank GSEDs.
Take note however that if the sale period has passed, available government securities will be those that are already within term.

Inquirer:
hindi po ba unfair yan sir, akala pa nmn namin pwede sa mga ordinaryung tao ang mga inu offer nyu

Guita of Colayco Foundation:
RTBs are not a product of Colayco Foundation. We are merely sharing this information. Financial institutions have their own processes in servicing clients, that is unfortunately out of our control. Check the other GSEDs.

 

What’s a sure investment?

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Inquirer:
any suggestion of investment na sigurado kahit dito kmi abroad makapag invest kami sa pinas..yung hindi na kami kailangan umuwi pa..thank you po

Guita of Colayco Foundation:
Walang investment na ‘sigurado’ ang lahat ng investment ay may risko. Mula sa riskong tinatanggap mo ang paglago ng iyong investment