Investing takes many forms. You can invest on things like shoes, bags, jewelries, on real property like house, lot, condo unit, cars, or on farming like cattle, pigs, or crops, and you can invest on paper assets such as Mutual Funds, Stocks Equities, Cooperative Shares or even direct corporate shares.
If you are first time investor, in view of these many and beautiful things you can invest on, you will have to learn how to, and which one to start with. This is very tricky task as there are those who will offer you these investments in exchange for your hard earned money. They will tell you or dictate to you which one to start with and if you are not in the know the proper way of which to choose, you will end up losing bigger opportunities for your money, or worse, you lose your money outright.
So how do you choose which to start with and which to choose from the whole array of investment possibilities? Let me share to you some practical ways I use .
There are three things I recommend you do: 1. Always counter check if it is really an Asset or Liability based on Robert Kiyosaki's definition, 2. Calculate or check prevailing rate of return, 3. Get a coach.
In my experience, based on Philippine scenario, real property trends, and the Stocks Market Trends, the best so far to invest in is on Mutual Funds and Stocks Equities. I should have deferred investing on real property which for the last 15 years had not grown more than 20% each year which one Mutual Fund has performed on the average in the last 16 years.
Once you have built up your paper assets, then you can buy at a bargain real properties or assets because CASH is KING!
If you want to learn more and wan to be coached how to do proper investing, please feel free to contact me or give me a feedback.
God bless!
Friday, December 17, 2010
Thursday, December 9, 2010
Spend Now or Later? Save Now or Later? Christmas Commercialized....
Every-time the last three (3) months comes, the Christmas frenzy heightens up. Christmas bazaars, Christmas Sale and thus Christmas spending abound. It is a beautiful season of giving but I hope we do not over do it. I hope and pray we can be spared from the commercialism of Christmas. I hope too that we have the right direction and answer to the question: Spend now or later? Save now or later?
We must be thankful for all the blessings we have received and show our gratitude by giving to people and institutions. We must carry on with the tradition of gift giving and still be able to save for future needs. How do we do this? Very simple. We stick to our prosperity formula. Income- Tithes(10%) - Savings(20%) = Expenses (70%). Since there will be an inflow of money which is our 13th month pay, we must ensure we allocate the amounts the same way and not go beyond the 70% of the Cash In-Flow.
We also have to ensure we only buy things that we really need and give also things which people can make use of and more importantly a basic need. For institutions that we would like to help, cash gifts is most appropriate. For individuals, and loved ones, we should identify what do they really need, which we also can afford.
We must not fall for SALE items which we actually do not need or we still have. Do not fall for nice items to replace old ones that are still usable. Many fall for new LED TV or a touch screen phone, to add on to their still working TV or phone. Big purchases like new cars also happens during this season as the cash inflow is really huge, but how about next month? Will there be another 13th month pay?
So there you are friends, I submit that we must spend now within our means and not later for this is the season of giving. And we must consistently do it even if it is not Christmas. Giving must be consistent and all through out the year. That's the real spirit of Christmas.
I also propose we save now and not later at least 20% of the total cash in-flow. And we must not fall victim to the commercialized Christmas.
Spend within your means for what is needed and save whatever you can consistently this Christmas and through out the year!
And if you invest on a November to December period you will usually get some bargains in Mutual Funds and while many spend their money to things they do not need, it will be a fantastic opportunity to SAVE and INVEST your 13th Month Cash In-Flow to Mutual Funds. Money you can spend for your future needs!
Happy Spending and Saving! May your Christmas be really merry including your New Year!
God bless!
We must be thankful for all the blessings we have received and show our gratitude by giving to people and institutions. We must carry on with the tradition of gift giving and still be able to save for future needs. How do we do this? Very simple. We stick to our prosperity formula. Income- Tithes(10%) - Savings(20%) = Expenses (70%). Since there will be an inflow of money which is our 13th month pay, we must ensure we allocate the amounts the same way and not go beyond the 70% of the Cash In-Flow.
We also have to ensure we only buy things that we really need and give also things which people can make use of and more importantly a basic need. For institutions that we would like to help, cash gifts is most appropriate. For individuals, and loved ones, we should identify what do they really need, which we also can afford.
We must not fall for SALE items which we actually do not need or we still have. Do not fall for nice items to replace old ones that are still usable. Many fall for new LED TV or a touch screen phone, to add on to their still working TV or phone. Big purchases like new cars also happens during this season as the cash inflow is really huge, but how about next month? Will there be another 13th month pay?
So there you are friends, I submit that we must spend now within our means and not later for this is the season of giving. And we must consistently do it even if it is not Christmas. Giving must be consistent and all through out the year. That's the real spirit of Christmas.
I also propose we save now and not later at least 20% of the total cash in-flow. And we must not fall victim to the commercialized Christmas.
Spend within your means for what is needed and save whatever you can consistently this Christmas and through out the year!
And if you invest on a November to December period you will usually get some bargains in Mutual Funds and while many spend their money to things they do not need, it will be a fantastic opportunity to SAVE and INVEST your 13th Month Cash In-Flow to Mutual Funds. Money you can spend for your future needs!
Happy Spending and Saving! May your Christmas be really merry including your New Year!
God bless!
Friday, November 12, 2010
The Market is Down... Litmus Test for the "Right Way of Investing"
The usual dip of the market while we approach Christmas Season is happening. The market as indicated by PSE Index tumbles down to 4000 from 4400 as of today due to profit taking. Most probable cause is to have Christmas Spending Money.
Prior to that, many are so happy to see their investments climb up the ceiling way above the expectations. The "day traders" out number the "stocks investors". Those of us who are still trying to learn the "right way" are instructed not to look at the trends. Those who chose to go and do it without a coach or guidance invest also and are happy with the results.
Now, that the market has reversed directions going downwards, we receive many calls, asking, what is happening, and what do they have to do with their stocks. Do they sell or stay?
The answer is obvious. Continue to invest regardless of the trend. Check your goals and align your stocks investments actions based on your goals. Do not panic, it is expected to climb again and go beyond the 5000 (PSE Index) points level.
God bless!
Prior to that, many are so happy to see their investments climb up the ceiling way above the expectations. The "day traders" out number the "stocks investors". Those of us who are still trying to learn the "right way" are instructed not to look at the trends. Those who chose to go and do it without a coach or guidance invest also and are happy with the results.
Now, that the market has reversed directions going downwards, we receive many calls, asking, what is happening, and what do they have to do with their stocks. Do they sell or stay?
The answer is obvious. Continue to invest regardless of the trend. Check your goals and align your stocks investments actions based on your goals. Do not panic, it is expected to climb again and go beyond the 5000 (PSE Index) points level.
God bless!
Sunday, November 7, 2010
Mutual Funds Return Zoom Past the 70%
Exactly 2 months ago, also here in my blog, I wrote that the Mutual Funds (MF) Rate of Return (ROR) is at 39%...Now in just 2 months, yes 2 months, another 30% has been gained!!!
When we tell people who are not in the know of Mutual Fund Investing, they would be scared to hear this kind of ROR. Instead of saying Hallelujah...they will be certainly crying out loud...SCAM...
But those of us, in the know...we see this as early Christmas Bonus! Hallelujah is what we exclaim! Because we know and is knowledgeable where to invest our hard earned money. We do not rely on others to invest it for us which usually happens to most people. They put their money in the bank, and let the bank do the investing for them and thus instead of getting the full potential of their money at 70% ROR, they get a measly 0.5% from Savings Deposits and if they are with large sums of deposits mayne able to swing it to 4% ROR. A pale comparison to the 70% that we get.
It is so easy, and it is continually made easy for ordinary folks to invest in Mutual Funds. With just 5K PHP you can already start your MF Investments.
If you want to learn and do this too, just give me a call or respond to this blog.
God bless!
When we tell people who are not in the know of Mutual Fund Investing, they would be scared to hear this kind of ROR. Instead of saying Hallelujah...they will be certainly crying out loud...SCAM...
But those of us, in the know...we see this as early Christmas Bonus! Hallelujah is what we exclaim! Because we know and is knowledgeable where to invest our hard earned money. We do not rely on others to invest it for us which usually happens to most people. They put their money in the bank, and let the bank do the investing for them and thus instead of getting the full potential of their money at 70% ROR, they get a measly 0.5% from Savings Deposits and if they are with large sums of deposits mayne able to swing it to 4% ROR. A pale comparison to the 70% that we get.
It is so easy, and it is continually made easy for ordinary folks to invest in Mutual Funds. With just 5K PHP you can already start your MF Investments.
If you want to learn and do this too, just give me a call or respond to this blog.
God bless!
Monday, September 6, 2010
Mutual Funds Unprecedented Gains!
Last year, one mutual fund we invested on gave us a return of 64.9%, and we thought it is a fluke as we are just simply recovering from a negative slump of more than 34%.
Early this year, the projections were conservative at about 20-25%, but as I write this blog...the rate of return of one fund we invest on is already at 39% and still expected to zoom fast to 50%.
There were those who listened and was convinced that our Mutual Funds here in the Philippines is on the upsurge. They however, did not act on it. There were those who want to act on it, but do not know where to start and get into companies that provides access to Mutual Funds. They also did not really act as they are ashamed to ask for assistance and coaching.
Lucky are those connected with IMG- International Marketing Group who have direct access to companies that provides Mutual Funds. They are now gaining the return on their investments on an unprecedented growth rate...and it is not going to go to a halt... by all indications, the stock market is going on a bull run and this will carry with it the Mutual Funds specially those invested on Equity Funds.
You want to have the same opportunity to ride this unprecedented bull run in the mutual funds? Contact us for coaching and guidance on this Mutual Funds investing.
God bless!
Early this year, the projections were conservative at about 20-25%, but as I write this blog...the rate of return of one fund we invest on is already at 39% and still expected to zoom fast to 50%.
There were those who listened and was convinced that our Mutual Funds here in the Philippines is on the upsurge. They however, did not act on it. There were those who want to act on it, but do not know where to start and get into companies that provides access to Mutual Funds. They also did not really act as they are ashamed to ask for assistance and coaching.
Lucky are those connected with IMG- International Marketing Group who have direct access to companies that provides Mutual Funds. They are now gaining the return on their investments on an unprecedented growth rate...and it is not going to go to a halt... by all indications, the stock market is going on a bull run and this will carry with it the Mutual Funds specially those invested on Equity Funds.
You want to have the same opportunity to ride this unprecedented bull run in the mutual funds? Contact us for coaching and guidance on this Mutual Funds investing.
God bless!
Tuesday, August 10, 2010
Day Trade or Money Cost Averaging...Which Way to Go!
Our investment climate in STOCKS An MUTUAL FUNDS is very very good compared to our neighboring countries for so many reasons favoring our country. Thus, many first time investors , and trying to be investment advisers are again on their happy ways of telling people to invest in STOCKS and MUTUAL FUNDS now.
Those who are learned, like Warren Buffet, do not wait for this moment where investment climate turns from bad to good. Real to goodness investors invest every time and anytime into STOCKS and MUTUAL FUNDS. They do not time the market as Warren advises. They invest in STOCKS and MUTUAL FUNDS using the power of "money cost averaging". This is the kind of investor I want to be and will always be. I invest in MUTUAL FUNDS and STOCKS for me and my family's future so I do not mind what is happening in the present. Regardless of trend of STOCKS and MUTUAL FUNDS I will continue to invest and in the long term, my money will earn , much much better even at its poorest performance , better than putting my money in the bank.
Another type of investor in MUTUAL FUNDS and STOCKS are those who time the market. They treat investing in MUTUAL FUNDS and STOCKS as betting in a "Lotto" game. They put in their money on a particular "bet" or stocks equity or MUTUAL FUNDS and if a certain gain is realized, they pull their money with the gains, and do the same thing all over again the following day. As per statistics, 85% of day traders end up losing their money an only 15% are successful. Sometimes, they win big time, and some days, they also lose big time. At times, even at the point of losing everything. Just like losing their money in "casinos" as day traders are likened to "stock gamblers"...
Which way do you wan to go?
It's is up to you. It is your money....
But as a matter of advise, go for Mutual Funds and Invest regularly..
God bless!
Those who are learned, like Warren Buffet, do not wait for this moment where investment climate turns from bad to good. Real to goodness investors invest every time and anytime into STOCKS and MUTUAL FUNDS. They do not time the market as Warren advises. They invest in STOCKS and MUTUAL FUNDS using the power of "money cost averaging". This is the kind of investor I want to be and will always be. I invest in MUTUAL FUNDS and STOCKS for me and my family's future so I do not mind what is happening in the present. Regardless of trend of STOCKS and MUTUAL FUNDS I will continue to invest and in the long term, my money will earn , much much better even at its poorest performance , better than putting my money in the bank.
Another type of investor in MUTUAL FUNDS and STOCKS are those who time the market. They treat investing in MUTUAL FUNDS and STOCKS as betting in a "Lotto" game. They put in their money on a particular "bet" or stocks equity or MUTUAL FUNDS and if a certain gain is realized, they pull their money with the gains, and do the same thing all over again the following day. As per statistics, 85% of day traders end up losing their money an only 15% are successful. Sometimes, they win big time, and some days, they also lose big time. At times, even at the point of losing everything. Just like losing their money in "casinos" as day traders are likened to "stock gamblers"...
Which way do you wan to go?
It's is up to you. It is your money....
But as a matter of advise, go for Mutual Funds and Invest regularly..
God bless!
Sunday, August 1, 2010
Investing on 3 in 1 Kaiser... Why this is our First Level Investing...
In our IMG business, we promote investing in Kaiser Long Term Health-care for first time investor so as to make sure that indeed there is a guaranteed return on the investment.
I call it as Level 1 or Grade 1 investing as there is no need to study the market, no need to look at the trends of MUTUAL FUNDS and STOCKS and no issue on timing when to put the investments. Kaiser HC also develops into the investor the DISCIPLINE or HABIT in INVESTING , which is the most common reason why first time investors fails to achieve his or her financial goals. Kaiser is our practice towards investing in MUTUAL FUNDS and STOCKS.
Moreover, there are freebies in this Kaiser which will be beneficial to the investor such as Free Annual Physical Exam, and Dental Care. And this is the greatest benefit with Kaiser that investing in other instruments like MUTUAL FUNDS and STOCKS do not provide: Protection or Waiver in case anything happens with the investor disabling her or him to continue the investments. That is why, before you invest get KAISER as your protection, health-care and investments rolled into one.
Once the habit of investing has been developed, we can then move to higher level type of investing: Level 2 - MUTUAL FUNDS, and then onwards to Level 3- Direct STOCKS Investing On-Line..
Do not be on a hurry, study, and learn and develop the habit first....
Happy Investing!
God bless!
I call it as Level 1 or Grade 1 investing as there is no need to study the market, no need to look at the trends of MUTUAL FUNDS and STOCKS and no issue on timing when to put the investments. Kaiser HC also develops into the investor the DISCIPLINE or HABIT in INVESTING , which is the most common reason why first time investors fails to achieve his or her financial goals. Kaiser is our practice towards investing in MUTUAL FUNDS and STOCKS.
Moreover, there are freebies in this Kaiser which will be beneficial to the investor such as Free Annual Physical Exam, and Dental Care. And this is the greatest benefit with Kaiser that investing in other instruments like MUTUAL FUNDS and STOCKS do not provide: Protection or Waiver in case anything happens with the investor disabling her or him to continue the investments. That is why, before you invest get KAISER as your protection, health-care and investments rolled into one.
Once the habit of investing has been developed, we can then move to higher level type of investing: Level 2 - MUTUAL FUNDS, and then onwards to Level 3- Direct STOCKS Investing On-Line..
Do not be on a hurry, study, and learn and develop the habit first....
Happy Investing!
God bless!
Tuesday, July 6, 2010
Mutual Funds Explained
Understanding Pooled Funds by FELY SANTIAGO on Philippine Online Chronicles
Here is a simple explanation on MUTUAL FUNDS which Fely has contributed...
I started investing in MUTUAL FUNDS (pooled funds) in 2008; then the market crashed! I was so scared in being a first time investor of MUTUAL FUNDS (pooled funds). But today, after two years of regularly investing, even as low as P1,000.00 each month, my rate of return stands at 30 percent. Not bad for an amateur. I wish I started this 30 years ago as soon as I started earning from employment
What are pooled funds? They are investment vehicles that offer a higher rate of return compared to bank deposits but not without risk. They are measured in terms of net asset value per unit (NAVPU) or net asset value per share (NAVPS). There are two kinds of pooled funds here in the Philippines –unit investment trust funds (UITF) and MUTUAL FUNDS.
UITF versus Mutual Fund
The major difference is that UITF is a bank product managed by the treasury department. Unlike in MUTUAL FUNDS where you buy shares, you buy investment units in UITF. Therefore you do not have shareholders right when investing in the latter.
Although UITF is a bank product, it is not covered by Philippine Deposit Insurance Corporation (PDIC). This means investors bear the risk of losing their money. Additionally, UITF is not governed by any specific law but since they are offered by the banks, they are still under Philippine banking laws regulated by the Banko Sentral ng Pilipinas (BSP). UITFs are also taxed unlike MUTUAL FUNDS which is net of tax.
On the other hand, MUTUAL FUNDS have strict regulations from Investment Company Act of the Philippines which are highly regulated by the Securities and Exchange Commission (SEC).
So what is a MUTUAL FUND? Many people still don’t understand what a MUTUAL FUND is. Well, struggle no more. MUTUAL FUND is like a cooperative where you put your money together. It does not matter how much each member initially puts into MUTUAL FUNDS. Some can put in minimum required amount which is P5,000.00 in most cases; and for additional investment, as low as P1,000 pesos. This money is then handled by a Fund Manager who is responsible for fund allocations. The MUTUAL FUND Fund Manager chooses which stocks or bonds to invest on. However, he is limited by certain guidelines of investments as promulgated by Securities and Exchange Commission.
MUTUAL FUNDS are offered by investment companies independently registered with SEC. Therefore, when you buy a MUTUAL FUND share, you become a shareholder of that company and you acquire the rights of a regular stockholder; including right to vote and right to receive dividends, among others.
Types of MUTUAL FUNDS:
Financial goals and risk appetite will determine which MUTUAL FUND is most suitable for an individual. The more popular MUTUAL FUNDS one can get into are:
Bond Fund MUTUAL FUND:
This MUTUAL FUND is primarily invested in government-issued securities. It's like giving your money to be used by the government with the promise that the government will pay it back with interest. In short, this type of MUTUAL FUND is your money lend to government.
BOND FUND- MUTUAL FUND is considered risk-free because the government has two ways of paying investors: print more money and raise revenues through tax collections. On the average, Bond Fund MUTUAL FUNDS performs four to six percent a year.
Money market fund MUTUAL FUND
Similar to bond funds, money market MUTUAL FUNDS also has a conservative stance since they invest in fixed income securities. It is also like having corporations take loans with a fixed interest earnings. These securities mature in one year or less hence, the term money market. Money market fund performs two percent a year on the average.
Stock fund or equity fund MUTUAL FUNDS
Equity fund type of MUTUAL FUND primarily invests in shares of stock of listed companies. The bigger allocation of equities within the portfolio allows this type of MUTUAL FUND to attain a more aggressive growth rate. Thus, this type of MUTUAL FUND is riskier, more volatile, and can result to either higher gains or high losses. Since equity fund MUTUAL FUNDS tracks the index, the rise and fall on a daily basis is reason for the volatility of the fund.
In 2008, Philequity Fund an Equity type of MUTUAL FUND , one of more popular MUTUAL FUNDS lost 41 percent. In 2009 however, it recovered and recorded a high of 65 percent! A lot of those who knew how to invest in the MUTUAL FUNDS earned a lot. For the past 16 years though, Philequity Fund grew at an average of 20 percent despite the ups and downs of the market.
Balanced fund MUTUAL FUND
Balanced fund invests in both bonds and equities. It combines the low-risk-low-gain of the bond fund type of MUTUAL FUNDS and the high-risk-high-gain of the equity fund type of MUTUAL FUNDS. 50-50, that is why it is called balanced.
Instead of having the money allocated on the risky equity funds, or on the conservative bond funds MUTUAL FUNDS, the money pooled together is invested by the fund manager on both giving investors the best of both funds. Balanced fund type of MUTUAL FUNDS performs 12-15 percent on the average.
Today, there are a total of 42 MUTUAL FUNDS listed in the country. 20 of these are bond funds, nine are equity funds, eight are balanced funds while the remaining five are money market funds.
On the other hand, there are 78 UITFs listed in the country. 32 are peso bond funds, 21 are dollar bond funds, 10 are peso money market funds, five dollar money market funds, nine peso equity funds and one dollar equity fund.
Now that we know what MUTUAL FUNDS are, I challenge you now to transform this knowledge to action and reap the harvest later. If you invest on a MUTUAL FUND that can earn a rate of 12 percent a year for the next 25 years at P1,000.00 pesos a month, you will be able to accumulate P1.8 million (P105,881 in present value).
Make that P5,000.00 per month and you’ll have P9.4 million after 25 years (P552,939 in present value). So who says, it’s difficult to accumulate millions? Continue investing ten years longer and you’ll accumulate P32 million (P606,064.97 in present value)! The higher the rate of return, the higher your money will grow in the long run to meet your needs for retirement, child education and cash fund.
So there you are! It does not take you much money to accumulate millions. What you just need is the financial literacy how and where to invest; and the discipline to put in small amounts on a regular basis that will soon accumulate to millions.
Now that you know what are pooled funds, don’t procrastinate. Start investing NOW!
Call us or contact us by email or through this blog or learn more about MUTUAL FUND investing... We also will teach you how to deal with stocks on line...
God bless!
Here is a simple explanation on MUTUAL FUNDS which Fely has contributed...
I started investing in MUTUAL FUNDS (pooled funds) in 2008; then the market crashed! I was so scared in being a first time investor of MUTUAL FUNDS (pooled funds). But today, after two years of regularly investing, even as low as P1,000.00 each month, my rate of return stands at 30 percent. Not bad for an amateur. I wish I started this 30 years ago as soon as I started earning from employment
What are pooled funds? They are investment vehicles that offer a higher rate of return compared to bank deposits but not without risk. They are measured in terms of net asset value per unit (NAVPU) or net asset value per share (NAVPS). There are two kinds of pooled funds here in the Philippines –unit investment trust funds (UITF) and MUTUAL FUNDS.
UITF versus Mutual Fund
The major difference is that UITF is a bank product managed by the treasury department. Unlike in MUTUAL FUNDS where you buy shares, you buy investment units in UITF. Therefore you do not have shareholders right when investing in the latter.
Although UITF is a bank product, it is not covered by Philippine Deposit Insurance Corporation (PDIC). This means investors bear the risk of losing their money. Additionally, UITF is not governed by any specific law but since they are offered by the banks, they are still under Philippine banking laws regulated by the Banko Sentral ng Pilipinas (BSP). UITFs are also taxed unlike MUTUAL FUNDS which is net of tax.
On the other hand, MUTUAL FUNDS have strict regulations from Investment Company Act of the Philippines which are highly regulated by the Securities and Exchange Commission (SEC).
So what is a MUTUAL FUND? Many people still don’t understand what a MUTUAL FUND is. Well, struggle no more. MUTUAL FUND is like a cooperative where you put your money together. It does not matter how much each member initially puts into MUTUAL FUNDS. Some can put in minimum required amount which is P5,000.00 in most cases; and for additional investment, as low as P1,000 pesos. This money is then handled by a Fund Manager who is responsible for fund allocations. The MUTUAL FUND Fund Manager chooses which stocks or bonds to invest on. However, he is limited by certain guidelines of investments as promulgated by Securities and Exchange Commission.
MUTUAL FUNDS are offered by investment companies independently registered with SEC. Therefore, when you buy a MUTUAL FUND share, you become a shareholder of that company and you acquire the rights of a regular stockholder; including right to vote and right to receive dividends, among others.
Types of MUTUAL FUNDS:
Financial goals and risk appetite will determine which MUTUAL FUND is most suitable for an individual. The more popular MUTUAL FUNDS one can get into are:
Bond Fund MUTUAL FUND:
This MUTUAL FUND is primarily invested in government-issued securities. It's like giving your money to be used by the government with the promise that the government will pay it back with interest. In short, this type of MUTUAL FUND is your money lend to government.
BOND FUND- MUTUAL FUND is considered risk-free because the government has two ways of paying investors: print more money and raise revenues through tax collections. On the average, Bond Fund MUTUAL FUNDS performs four to six percent a year.
Money market fund MUTUAL FUND
Similar to bond funds, money market MUTUAL FUNDS also has a conservative stance since they invest in fixed income securities. It is also like having corporations take loans with a fixed interest earnings. These securities mature in one year or less hence, the term money market. Money market fund performs two percent a year on the average.
Stock fund or equity fund MUTUAL FUNDS
Equity fund type of MUTUAL FUND primarily invests in shares of stock of listed companies. The bigger allocation of equities within the portfolio allows this type of MUTUAL FUND to attain a more aggressive growth rate. Thus, this type of MUTUAL FUND is riskier, more volatile, and can result to either higher gains or high losses. Since equity fund MUTUAL FUNDS tracks the index, the rise and fall on a daily basis is reason for the volatility of the fund.
In 2008, Philequity Fund an Equity type of MUTUAL FUND , one of more popular MUTUAL FUNDS lost 41 percent. In 2009 however, it recovered and recorded a high of 65 percent! A lot of those who knew how to invest in the MUTUAL FUNDS earned a lot. For the past 16 years though, Philequity Fund grew at an average of 20 percent despite the ups and downs of the market.
Balanced fund MUTUAL FUND
Balanced fund invests in both bonds and equities. It combines the low-risk-low-gain of the bond fund type of MUTUAL FUNDS and the high-risk-high-gain of the equity fund type of MUTUAL FUNDS. 50-50, that is why it is called balanced.
Instead of having the money allocated on the risky equity funds, or on the conservative bond funds MUTUAL FUNDS, the money pooled together is invested by the fund manager on both giving investors the best of both funds. Balanced fund type of MUTUAL FUNDS performs 12-15 percent on the average.
Today, there are a total of 42 MUTUAL FUNDS listed in the country. 20 of these are bond funds, nine are equity funds, eight are balanced funds while the remaining five are money market funds.
On the other hand, there are 78 UITFs listed in the country. 32 are peso bond funds, 21 are dollar bond funds, 10 are peso money market funds, five dollar money market funds, nine peso equity funds and one dollar equity fund.
Now that we know what MUTUAL FUNDS are, I challenge you now to transform this knowledge to action and reap the harvest later. If you invest on a MUTUAL FUND that can earn a rate of 12 percent a year for the next 25 years at P1,000.00 pesos a month, you will be able to accumulate P1.8 million (P105,881 in present value).
Make that P5,000.00 per month and you’ll have P9.4 million after 25 years (P552,939 in present value). So who says, it’s difficult to accumulate millions? Continue investing ten years longer and you’ll accumulate P32 million (P606,064.97 in present value)! The higher the rate of return, the higher your money will grow in the long run to meet your needs for retirement, child education and cash fund.
So there you are! It does not take you much money to accumulate millions. What you just need is the financial literacy how and where to invest; and the discipline to put in small amounts on a regular basis that will soon accumulate to millions.
Now that you know what are pooled funds, don’t procrastinate. Start investing NOW!
Call us or contact us by email or through this blog or learn more about MUTUAL FUND investing... We also will teach you how to deal with stocks on line...
God bless!
1st Half 2010 Mutual Fund Performance
Sharing 1st half performance of Mutual Funds...Most of what we carry in IMG are in the top list (First Metro, Philam Bond Funds Philequity Funds)...If you invested P100K in January in First Metro Save & learn Equity fund, your money would have been P123K end of June! That's 23% return!
How much is the return of your money in the bank??? You wont even earn more than 500Php.
Of course it's not always like this year after year..But on the average return has been between 15-18%% which is way above 12% that we use in our trainings. It comes as a surprise to a lot of people because they don't know that there are indeed investment vehicles giving 12% return.. mine was 30% last year and 16% for the first half!
The key though is regular, disciplined approach to investing to maximize the return of your money..but how can you do it if your monthly cash flow is not enough? That's where the IMG business opportunity comes in! By doing the IMG business -- which is sharing financial literacy and applying it (education plus application) -- you have the potential of earning extra income that you can invest!
Look how much your money will be if you invest P5000 and P10000 at 18% return for 10, 15, 20, 25, 30 years! It's P70M after 30 yrs for P5000 monthly investment and P141M after 30 yrs for P10000 monthly investment! You CAN DO it if you do the IMG business! Just spread JOS (Join-Own-Share)!
10Y 15Y 20Y 25Y 30Y
5000 5000 5000 5000 5000
18% 18% 18% 18% 18%
120 180 240 300 360
1.65M 4.53M 11.5M 28.7M 70.6M
10000 10000 10000 10000 10000
18% 18% 18% 18% 18%
120 180 240 300 360
3.31M 9.06M 23.1M 57.4M 141.1M
This is the secret to BUILDING WEALTH..Disciplined approach to investing! PAY YOURSELF FIRST every month when you receive your paycheck...Invest..invest..invest...
Maximize your IMG membership..You are already your own broker/dealer. Continue to educate yourself and apply it through our product providers. Get the commission and reinvest it!
God bless!
How much is the return of your money in the bank??? You wont even earn more than 500Php.
Of course it's not always like this year after year..But on the average return has been between 15-18%% which is way above 12% that we use in our trainings. It comes as a surprise to a lot of people because they don't know that there are indeed investment vehicles giving 12% return.. mine was 30% last year and 16% for the first half!
The key though is regular, disciplined approach to investing to maximize the return of your money..but how can you do it if your monthly cash flow is not enough? That's where the IMG business opportunity comes in! By doing the IMG business -- which is sharing financial literacy and applying it (education plus application) -- you have the potential of earning extra income that you can invest!
Look how much your money will be if you invest P5000 and P10000 at 18% return for 10, 15, 20, 25, 30 years! It's P70M after 30 yrs for P5000 monthly investment and P141M after 30 yrs for P10000 monthly investment! You CAN DO it if you do the IMG business! Just spread JOS (Join-Own-Share)!
10Y 15Y 20Y 25Y 30Y
5000 5000 5000 5000 5000
18% 18% 18% 18% 18%
120 180 240 300 360
1.65M 4.53M 11.5M 28.7M 70.6M
10000 10000 10000 10000 10000
18% 18% 18% 18% 18%
120 180 240 300 360
3.31M 9.06M 23.1M 57.4M 141.1M
This is the secret to BUILDING WEALTH..Disciplined approach to investing! PAY YOURSELF FIRST every month when you receive your paycheck...Invest..invest..invest...
Maximize your IMG membership..You are already your own broker/dealer. Continue to educate yourself and apply it through our product providers. Get the commission and reinvest it!
God bless!
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