Dr_PepPeR Posted January 16, 2007 Author Share Posted January 16, 2007 Sorry for that mistake, just new here though I have signed up sometime ago. My question for Dr. Pepper is given your explanation, what would be the effect of the planned central bank cutback on interest rates on the following: 1) Peso UITFs 2) Dollar UITFs 3) ROPs ? Will UITF navpus go down? Thanks Dr. Pepper, from what I have read so far, you seem to be an expert in this field and have been a great help to everyone!!! More Power!!! Good day sir! The behavior of NAVPUs of Peso UITFs vs. the interest rate is an inverse one, so that if interest rates go down, NAVPUs will generally go up. Thus, in an environment of low interest rates, expect the Peso UITFs to go up and up. For Dollar UITFs it will be harder to predict but if Peso interest rates continue to fall, so much so that US Dollar investments become more attractive, then as US Dollar interest rates go up, then Dollar NAVPUs will fall. This would work for local Dollar investments like Time Deposits but there are many other factors that affect Dollar UITF NAVPU behavior, and it would depend on where a UITF fund is invested in order to make an educated guess based on fundamentals. Traditionally, most Dollar UITFs are invested in Dollar ROPs so it would be best to look at the contents of the Dollar UITF and compare its behavior with the ROPs. Short term ROPs will usually go down while long term ROPs will usually go up on a low interest rate scenario. Hope that helps, just post again if you need more clarification. Quote Link to comment
Dr_PepPeR Posted January 16, 2007 Author Share Posted January 16, 2007 Sir, Ok ba maginvest ngayon sa Balanced Fund or Equity Fund? Parang ang taas kasi ng stocks. Mag cocontinue pa kaya ang pagtaas or bababa after some time? Salamat po. Yes, now would be a good time to invest in equity or balanced UITFs. Market fundamentals are good and the economy is still going strong. I expect this performance to continue until the start of the 2nd quarter of 2007, that is, until the local elections where investor confidence could change directions again. Try to wait until chinese new year when I expect stocks to dip a bit then continue to trend upwards. Just mah 'pinion of course. Quote Link to comment
Dr_PepPeR Posted January 16, 2007 Author Share Posted January 16, 2007 Hello Dr. Pepper, I'm back! I would like to ask if you have any info on this: BDO Smart Money Dollar Fund GoldThis is a dollar-denominated common trust fund for high networth dollar investors. Minimum and subsequent investment is $10,000. It states that it is a common trust fund. But hasn't CTFs been scrapped and has been replaced by UITFs? I checked the UITF consolidated reports and I only found 2 BDO US Dollar UITFs, their Dollar Money Market Fund and Dollar Bond Fund. It is quite possible that that is their old UITF Dollar Fund. But you are correct in that the CTFs were supposed to have been migrated into the UITF by October of last year. I'll try to check again their webpage if that fund is still up and running. Quote Link to comment
Dr_PepPeR Posted January 16, 2007 Author Share Posted January 16, 2007 Merong trade na master ah Starts with F :evil: Lets talk about this uitf when we meet together with my friend Talley Fencing? Fishing? Farting? Feuding? I give up. Will be glad to meet up with you and Talley sometime soon. Good luck on your own 'F' adventures! Quote Link to comment
jerzz Posted January 17, 2007 Share Posted January 17, 2007 Fencing? Fishing? Farting? Feuding? I give up. Will be glad to meet up with you and Talley sometime soon. Good luck on your own 'F' adventures! Fishing Naturally, in a Fully Loaded Aquarium Just made a UiTF investment with no holding period. How do I know When to pull it out? Quote Link to comment
jerzz Posted January 17, 2007 Share Posted January 17, 2007 (edited) Hi jerzz, Kelan at saan? Long time no see.... Regards, Talley Hi Talley If we ask Dr PepPeR there, it will probably be Padrone's Cafe As to when, will see Just made a UiTF investment with no holding period. How do I know When to pull it out? Regards too, Jerzz Edited January 17, 2007 by jerzz Quote Link to comment
Dr_PepPeR Posted January 17, 2007 Author Share Posted January 17, 2007 Fishing Naturally, in a Fully Loaded Aquarium Just made a UiTF investment with no holding period. How do I know When to pull it out? Hi Talley If we ask Dr PepPeR there, it will probably be Padrone's Cafe As to when, will see Just made a UiTF investment with no holding period. How do I know When to pull it out? Regards too, Jerzz Actually, if it's coffee or lunch, I'd prefer somewhere in the Ortigas area, take your pick of Galleria, Megamall, Podium, Metrowalk or any hole in the wall there. We just will not be able to indulge Jerzz' fishing adventure. If your UITF is in fixed income, you should pull it out when you think interest rates are about to go up. If it is in a balanced or equity fund, pull it out if you think there will be a slump in the prices at the stock market. If you think you want to cash in on your market gain, cash it in; if you also need the money badly, redeem your UITF funds. Quote Link to comment
Talley Posted January 18, 2007 Share Posted January 18, 2007 Actually, if it's coffee or lunch, I'd prefer somewhere in the Ortigas area, take your pick of Galleria, Megamall, Podium, Metrowalk or any hole in the wall there. We just will not be able to indulge Jerzz' fishing adventure. If your UITF is in fixed income, you should pull it out when you think interest rates are about to go up. If it is in a balanced or equity fund, pull it out if you think there will be a slump in the prices at the stock market. If you think you want to cash in on your market gain, cash it in; if you also need the money badly, redeem your UITF funds. Hi Dr_Pepper, Ortigas is also fine with me since I work in the area. Guess we'll just have to check when Jerzz is free. Regards, Talley Quote Link to comment
anarkista Posted January 18, 2007 Share Posted January 18, 2007 Hi, Doc Pepper, I hope you could help me on this one. I am really enjoying UITF. From Peso Bond Fund, I am now going to invest in Equity Funds. The return is definitely more significant than this current investment that I have – riskier, of course. I am basing my decision on history of equity funds of a number of banks – I checked ING, BPI, RCBC, IFund. They are all doing very, very well. The growth is so consistent. Here’s my question, what are the economic and financial ‘signs’ that I should look out to to guard my investment? Or would you say that this ‘question’ is actually a sign that I should not invest in equities yet (due to my lack of knowledge in the field)? I would want eventually to move a step further: go into stocks directly. I kno there is no 'Stocks 101 for Dummies', but I hope you could give me suggestion (materials and references, probably) on how I could understand Stocks more. I am a Pol Sci major, by the way, and we did not discuss this in my class. :-) Salamat ng marami! (And I hope I could join your group in discussions like this one of these days.) Quote Link to comment
Dr_PepPeR Posted January 18, 2007 Author Share Posted January 18, 2007 Hi Dr_Pepper, Ortigas is also fine with me since I work in the area. Guess we'll just have to check when Jerzz is free. Regards, Talley That would be really kewl! Looking forward to it! Quote Link to comment
Dr_PepPeR Posted January 19, 2007 Author Share Posted January 19, 2007 Hi, Doc Pepper, I hope you could help me on this one. I am really enjoying UITF. From Peso Bond Fund, I am now going to invest in Equity Funds. The return is definitely more significant than this current investment that I have – riskier, of course. I am basing my decision on history of equity funds of a number of banks – I checked ING, BPI, RCBC, IFund. They are all doing very, very well. The growth is so consistent. Here’s my question, what are the economic and financial ‘signs’ that I should look out to to guard my investment? Or would you say that this ‘question’ is actually a sign that I should not invest in equities yet (due to my lack of knowledge in the field)? I would want eventually to move a step further: go into stocks directly. I kno there is no 'Stocks 101 for Dummies', but I hope you could give me suggestion (materials and references, probably) on how I could understand Stocks more. I am a Pol Sci major, by the way, and we did not discuss this in my class. :-) Salamat ng marami! (And I hope I could join your group in discussions like this one of these days.) UITFs are performing very well now both finxed income and equity/balanced funds due to the strong economic fundamentals and the low interest rate scenario. Now is also a good time to enter since it is the Bangko Sentral's policy to keep interest rates low and the fundamentals of the blue chip companies are very strong, both circumstances of which are expected to continue up to the May local elections or the second quarter. If you are invested in an equity/balanced UITF, what you should monitor is the behavior of the blue chip companies or the PHISIX. Since the market value of these funds are tied to first liner stock prices, as long as the stock market is bullish, then you will earn a lot more than pure fixed income investments. When you can see that the stock market is about to slump, then it is time to take in profit. You can redeem your UITF unit before the slump and put it somewhere else or realize your profit and put back in your principal when the stock market goes down, again to take advantage of the low NAVPUs. When will there be a slump? Well, my own personal opinion is that it is the foreign investors who influence the market the most with the size of their investments as well as their ability to act quickly in terms of selling and buying. So anytime there is uncertainty in the country's economy or political climate, even by perception only, expect the stock market to be affected. For long terms holdings, you can't go wrong with looking at the fundamentals. If the blue chips are doing well, any drop in stock price is bound to be temporary. You can always wade into stock investing directly but with the volumes required to trade, you will have to work through a stock broker. Of course, this is only an opinion, and you know what they say about opinions. Quote Link to comment
anarkista Posted January 19, 2007 Share Posted January 19, 2007 As always, you've been of great help, Doc Pepper. Have a nice day! Quote Link to comment
parbust3r Posted January 19, 2007 Share Posted January 19, 2007 what uitfs would you guys recommend? or mutual funds? Dr. pepper? Quote Link to comment
Dr_PepPeR Posted January 19, 2007 Author Share Posted January 19, 2007 As always, you've been of great help, Doc Pepper. Have a nice day! You're quite welcome sir, but please feel free to take what I say with a grain of salt. I don't claim to be an expert at anything. Quote Link to comment
Dr_PepPeR Posted January 19, 2007 Author Share Posted January 19, 2007 what uitfs would you guys recommend? or mutual funds? Dr. pepper? What are your investment objectives? How long do you intend to keep it there? What is your risk appetite? How familiar are you with investments? The big reputable banks are good choices, and I would choose UITFs over mutual funds anyday. Well, for one, I am biased, second, mutual funds have higher operating costs which of course are borne by the investor, and thirdly, most mutual funds have their assets managed by the banks themselves. Quote Link to comment
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