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i agree with you bro. i also had a meeting yesterday with a colleague from the insurance industry, and also because of the volatility of our stock market now, even their products which have UITF tie-ups (variable life type of product) is also suffering.

 

I think now would be a good time to go into equities, even blue chip, whether directly or through balanced or equity UITFs or Mutual Funds. A lot of hte blue chips are undervalued now, despite strong corporate earnings and good fundamentals. That is, if you have the risk appetite for it.

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I think now would be a good time to go into equities, even blue chip, whether directly or through balanced or equity UITFs or Mutual Funds. A lot of hte blue chips are undervalued now, despite strong corporate earnings and good fundamentals. That is, if you have the risk appetite for it.

 

 

boss Doc Pepper,, whats your basis for this? Im eager to put some investments for UITF,, Im in BDO right now but nothing spectacular,, just linear small gain that is almost predictible,, Is this something that will wake up us up?? :)

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boss Doc Pepper,, whats your basis for this? Im eager to put some investments for UITF,, Im in BDO right now but nothing spectacular,, just linear small gain that is almost predictible,, Is this something that will wake up us up?? :)

 

It just seems logical right now. Rates on bonds are flat. Looks like it will remain flat for a while. On the other hand, a lot of blue chps seem to be undervalued. Their prices have gone down BUT their financial statements for the first quarter show them to be quite healthy.

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  • 4 weeks later...

Will UITF be a good place to invest as of this time? Prevailing perception is we're headed for a Vietnam-like situation and our Peso will weaken further. Maybe just change most of savings to USD and cash in later when things normalize? Dont know if this makes sense; could anyone care to comment?

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Will UITF be a good place to invest as of this time? Prevailing perception is we're headed for a Vietnam-like situation and our Peso will weaken further. Maybe just change most of savings to USD and cash in later when things normalize? Dont know if this makes sense; could anyone care to comment?

 

As of rignt now, if ever you go to UITFs, I would say go to the balanced or equity UITFs. Balanced UITFs have about 20-30% of their assets in equites while equity UITFs have about 50% of their assets in equities. Blue chips are currently undervalued and as a result, the Net Asset Value per Unit (NAVPU) is relatively low. Savvy investors may want to take advantage of this and get in, and as soon as the stock market rebounds, redeem the units and realize their profit. For Peso fixed income UITFs, I don't think it will move for the rest of the year so I doubt if this is the way to go. As to converting PHP to USD, peso interest rates are still better than USD, so I don't see the advantage considering that the Dollar is still weak against other currencies and the economy is still fundamentally sound.

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As of rignt now, if ever you go to UITFs, I would say go to the balanced or equity UITFs. Balanced UITFs have about 20-30% of their assets in equites while equity UITFs have about 50% of their assets in equities. Blue chips are currently undervalued and as a result, the Net Asset Value per Unit (NAVPU) is relatively low. Savvy investors may want to take advantage of this and get in, and as soon as the stock market rebounds, redeem the units and realize their profit. For Peso fixed income UITFs, I don't think it will move for the rest of the year so I doubt if this is the way to go. As to converting PHP to USD, peso interest rates are still better than USD, so I don't see the advantage considering that the Dollar is still weak against other currencies and the economy is still fundamentally sound.

saer just yesterday i was at the bank the cashier who is holding my acct . told me balance fund is not good at the moment from as high as 2600 navpu

 

right now is just about over 1819 something.. i have other investment w/c i can't touch it. coz it was very low ... i lose about 10% of it .. in sunlife share or navpu

 

it's about negative 19% included the one time service fee of 5%... i think putting money on special deposit acct.. of gov't bond w/ a rate of 4.2% net

 

or navpu like mmf of bdo range about 3.75 plus .. are more safe & not risky. but when stocks rebound you will really earn a lot from balance fund......

 

i hope i have that kind of fund as much as you do. so i can gamble or risk to this kind of investment....... :hypocritesmiley:

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saer just yesterday i was at the bank the cashier who is holding my acct . told me balance fund is not good at the moment from as high as 2600 navpu

 

right now is just about over 1819 something.. i have other investment w/c i can't touch it. coz it was very low ... i lose about 10% of it .. in sunlife share or navpu

 

it's about negative 19% included the one time service fee of 5%... i think putting money on special deposit acct.. of gov't bond w/ a rate of 4.2% net

 

or navpu like mmf of bdo range about 3.75 plus .. are more safe & not risky. but when stocks rebound you will really earn a lot from balance fund......

 

i hope i have that kind of fund as much as you do. so i can gamble or risk to this kind of investment....... :hypocritesmiley:

 

You are mistaken sir. I don't have extra funds for investments, most of it goes to scholarship grants (remember which threads I visit?). If you do have extra funds, now would be a good time to go into balanced or equity funds and realize the income when the NAV moves up, like as you've been told, the NAV is still low now. But if you are already in, don't move out just yet otherwise you will realize the loss. Keep it in until the NAV goes up or if you have an alternative investment that will give you back your realized loss and get you a positive income on top of that within a relatively short span of time.

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You are mistaken sir. I don't have extra funds for investments, most of it goes to scholarship grants (remember which threads I visit?). If you do have extra funds, now would be a good time to go into balanced or equity funds and realize the income when the NAV moves up, like as you've been told, the NAV is still low now. But if you are already in, don't move out just yet otherwise you will realize the loss. Keep it in until the NAV goes up or if you have an alternative investment that will give you back your realized loss and get you a positive income on top of that within a relatively short span of time.

thank you very much sir... as of now don't have extra fund .... to invest in stocks & nav .. i have have to wait for my investment to goes up i think if i pull it out now &

 

transfer it to a spda it would take more than 2 yrs. to get it back base on rate that they are giving.... :goatee:

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thank you very much sir... as of now don't have extra fund .... to invest in stocks & nav .. i have have to wait for my investment to goes up i think if i pull it out now &

 

transfer it to a spda it would take more than 2 yrs. to get it back base on rate that they are giving.... :goatee:

 

Fixed income rates are moving up so if you are in fixed income UITF or mutual funds, it may take a while for the NAV to go up. Is an SPDA a special deposit account? You can try special savings accounts for 30 - 90 days in the meantime. Keep everything short term.

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Fixed income rates are moving up so if you are in fixed income UITF or mutual funds, it may take a while for the NAV to go up. Is an SPDA a special deposit account? You can try special savings accounts for 30 - 90 days in the meantime. Keep everything short term.

yes sir special deposit account bond under central bank... but no pdic .. special savings account .. are they offering up 90 days? spda 30 to 31 days only

 

they are not offering long term as of now.. what bank are offering special savings account if you don't mind me asking & how about the rates?? thanks saer... :rolleyes:

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yes sir special deposit account bond under central bank... but no pdic .. special savings account .. are they offering up 90 days? spda 30 to 31 days only

 

they are not offering long term as of now.. what bank are offering special savings account if you don't mind me asking & how about the rates?? thanks saer... :rolleyes:

 

If you are in the BSP SDAs they seem to be the best as of now. The Monetary Board meets tomorrow so the SDA rates will probably go up. SDAs are also available on 7 and 14 days aside from the 30 days. No need for PDIC on a Bangko Sentral placement, they're the ones that print our money anyway. The bank that seems to have the highest special savings account is Export Bank nowadays, but you should call them to get the rates.

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If you are in the BSP SDAs they seem to be the best as of now. The Monetary Board meets tomorrow so the SDA rates will probably go up. SDAs are also available on 7 and 14 days aside from the 30 days. No need for PDIC on a Bangko Sentral placement, they're the ones that print our money anyway. The bank that seems to have the highest special savings account is Export Bank nowadays, but you should call them to get the rates.

your right sir i heard that the interest rates will go up... do you have any idea of the RTB am not sure if it's a retail treasury bond they are offering it.

 

in a long term basis 3yrs. @ 6.9% net 5yrs. is 7.6% net ..... other bank will launch this product this end of the month.....

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  • 3 weeks later...
  • 1 month later...
Is now a good time to invest on UITFs? Which one, fixed income or balanced? Are BPI UITFs performing well?

 

This type of question is hard to answer without profiling. If you are looking to make short term gains, take note that some UITFs have holding periods which could run from 30 to 90 days. The general rule regarding UITFs is you come in when the NAVPU is low and get out when the NAVPU is high. Also bear in mind that most UITFs are relatively long term in terms of achieving a gain, that is, if you want to come out on the positive side, you may have to stay in for a period of around a year or so.

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Guys I need your advice.

 

When my daughter was 1 year old, I got her a pre-need plan for her college. And you know what happened with these pre-need companies. Our investment for her college was gone.

 

Now I want to start again to invest for her college but for sure not a pre-need plan.

 

Assuming that she will take 5 years course and it will cost PH100,000 per year for her tuition with the current average tuition fee. That will requires me to put PH500,000 for her college fund.

 

She will be in college after 5 years from now. Take the inflation average of 7% per year, the value of 500,000 college fund will not be the same after 5 years. Maybe I may need to put approx. PH700,000 that time when she will attend college.

 

My question now is, if I have the PH500,000 now, WHERE to invest this amount just to at least beat the inflation rate or to gain at least in a minimal interest after inflation.

 

TIA

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Guys I need your advice.

 

When my daughter was 1 year old, I got her a pre-need plan for her college. And you know what happened with these pre-need companies. Our investment for her college was gone.

 

Now I want to start again to invest for her college but for sure not a pre-need plan.

 

Assuming that she will take 5 years course and it will cost PH100,000 per year for her tuition with the current average tuition fee. That will requires me to put PH500,000 for her college fund.

 

She will be in college after 5 years from now. Take the inflation average of 7% per year, the value of 500,000 college fund will not be the same after 5 years. Maybe I may need to put approx. PH700,000 that time when she will attend college.

 

My question now is, if I have the PH500,000 now, WHERE to invest this amount just to at least beat the inflation rate or to gain at least in a minimal interest after inflation.

 

TIA

 

Considering that this is more likely a five year investment horizon, you may choose to invest in a corporate five year note or a Tier Two offering. Since it is for at least five years, it is tax exempt and will at least put you ahead of inflation. If you don't feel comfortablw with choosing a five year instrument, try to visit a trust department and let them invest it for you for five years.

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Considering that this is more likely a five year investment horizon, you may choose to invest in a corporate five year note or a Tier Two offering. Since it is for at least five years, it is tax exempt and will at least put you ahead of inflation. If you don't feel comfortablw with choosing a five year instrument, try to visit a trust department and let them invest it for you for five years.

 

Thanks Doc to your advice.

Yes, this will be in a five years investment horizon. But I don't have any experience in other investment as you mentioned. My other investment are simply US$ TD, PESO TD and savings accounts. Do you think for a novice like me, if I try the UITF or Mutual Fund will serve my purpose?

 

Ex: 50% equity or balance fund

30% money market

20% bond

 

Note: Im willing to take the risk for equity investment coz i still have the time to recover the lost.

 

Thanks.

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