Small Ammount Investments

[redshirt]

Hi. Im in the 18-21 age group. I don't have much money and don't know anything about money aside from what it can buy and how important it is to an individual. But, having said that I would like to change things a bit and start investing on something aside from sports betting. With a budget of PHP 12000-15000 what are the possible investments one can venture into? Please go easy on me mates, I just want to put some money aside for the provebial rainy day.

 

After doing some research, I came up with the following options:

 

1.) Time Deposit

2.) Buy and sell of Pound Sterlings/Euro

3.) The staple Savings Account

 

Will be looking forward to your input. Also, I hope you keep the "business terms/language" on the low because the chances of me understanding them don't seem to look bright.

 

Thank You very much.

[Dr_PepPeR]

Hi. Im in the 18-21 age group. I don't have much money and don't know anything about money aside from what it can buy and how important it is to an individual. But, having said that I would like to change things a bit and start investing on something aside from sports betting. With a budget of PHP 12000-15000 what are the possible investments one can venture into? Please go easy on me mates, I just want to put some money aside for the provebial rainy day.

 

After doing some research, I came up with the following options:

 

1.) Time Deposit

2.) Buy and sell of Pound Sterlings/Euro

3.) The staple Savings Account

 

Will be looking forward to your input. Also, I hope you keep the "business terms/language" on the low because the chances of me understanding them don't seem to look bright.

 

Thank You very much.

 

First off, what is your time horizon? In other words, how long are you willing to keep your funds invested without using it for some other purpose? Another thing is your risk appetite. The bigger the risk, the higher the potential return. What kind of risks are you willing to take. Forget the savings account, if ever, for the major banks, they only give you a measly .75% per annum interest. For the buying and selling of Pound Sterlings/Euro, what exactly is this? Is this a derivative or a straight trading of forex? Considering the amount, your best bets are Time Deposits, Special Savings Account, Retail Treasury Bonds, UITFs and Mutual Funds.

Edited December 2, 2007 by Dr_PepPeR

[redshirt]

First off, what is your time horizon? In other words, how long are you willing to keep your funds invested without using it for some other purpose? Another thing is your risk appetite. The bigger the risk, the higher the potential return. What kind of risks are you willing to take. Forget the savings account, if ever, for the major banks, they only give you a measly .75% per annum interest. For the buying and selling of Pound Sterlings/Euro, what exactly is this? Is this a derivative or a straight trading of forex? Considering the amount, your best bets are Time Deposits, Special Savings Account, Retail Treasury Bonds, UITFs and Mutual Funds.

Thank you for replying Mr. Dr.Pepper.

 

By time horizon do you mean how long am I willing to part with said ammount? Well Im thinking of 3 months short term/ 5 years for long term. The Php 12-15k are funds just for savings and invetments. Whatever profits I getr from it I will just invest it again and again. I think it's safe to say my risk appetite is "moderate". All my agressiveness goes to sports betting but that's a different story.

 

When I said buying and selling of Pound Sterling/EUROs what I ment was I will exchange my pesos to let's say EUROs when the rates go up, I sell it back to pesos and so on...

 

Allied Bank was offering me this "Allied Top Saver" thing. .80% interest + bonus interest if you don't withdraw funds. Withdrawals are limited to 2 times per month....

 

China Bank's time deposit have the best interest rate of 3.50% for 90 days but it's subject to 20% tax...

[kadafy]

man, you may want to check out uitfs. there are products in banks that can be interesting. some products have a minimum 30-day holding period (meaning, you have to at least "part" with your money for at least 30 days) and a minimum "investment" of 10K. then it's up to you if you want to "re-invest" it withdraw. i think doc pepper here is the main man regarding uitfs...

[Google]

UITFs or Treasury Bills.

[redshirt]

Thanks for your replies mates. I did some research and all of them require 100k for UITFs.....

 

 

Can anyone recomend a bank wherein you can get a UITF for 10-15k?

 

Cheers!

[kadafy]

dude, BDO (banco de oro) got some products (uitf) that requires a minimum of 10 gran. you might want to check out their PFIF & PBAL products.

Edited December 4, 2007 by kadafy

[redshirt]

dude, BDO (banco de oro) got some products (uitf) that requires a minimum of 10 gran. you might want to check out their PFIF & PBAL products.

thanks mate. I was having a chat with someone this lunch aout UITFs and he todl me that "hindi o lang basta pwedeng pabayaan yan parang time deposit kasi mauubos bigla yan" can someone shed some light into that statement? Was he implying that UITF are like stocks? You can buy or sell it at anytime to gain profits or cut your losses?

 

And whats a PFIF & PBAL?

 

cheers!

[Alex_Corvis]

First you have to ebar in mind na there is no investment that dont have risk. In IUTF and Mutual funds, parang stock market, nag babago value araw araw. If you invest now, there are chances na bumaba yung value ng fund mo or tumaas, depende sa performance ng fund managers.

 

Sa stock market you are actively placing orders to the company in which you want to invest. Sa Mutual funds and IUTF, you are giving your money to fund managers/ bank, and sila ang mag invest nun kung san yung sa tingin nila ay kikita yung pera mo, may it be bonds, stocks or t-bills.

 

if you plan on investing with IUTFs and Mutual funds, it will be better kung patutulugin mo sya ng 2 years above. Kasi kahit na nag flu-fluctuate daily yung rates, fundamentally it will go up in the long run.

 

BDO have IUTF starting at 10k min

Philequity mutual funds starts at 5k

other Mutual funds starts at 10k

[redshirt]

First you have to ebar in mind na there is no investment that dont have risk. In IUTF and Mutual funds, parang stock market, nag babago value araw araw. If you invest now, there are chances na bumaba yung value ng fund mo or tumaas, depende sa performance ng fund managers.

 

Sa stock market you are actively placing orders to the company in which you want to invest. Sa Mutual funds and IUTF, you are giving your money to fund managers/ bank, and sila ang mag invest nun kung san yung sa tingin nila ay kikita yung pera mo, may it be bonds, stocks or t-bills.

 

if you plan on investing with IUTFs and Mutual funds, it will be better kung patutulugin mo sya ng 2 years above. Kasi kahit na nag flu-fluctuate daily yung rates, fundamentally it will go up in the long run.

 

BDO have IUTF starting at 10k min

Philequity mutual funds starts at 5k

other Mutual funds starts at 10k

thank you for the information sir.

 

May naisip nako na strategy. maybe 1 year sa Time Deposit then UITF na.

[Alex_Corvis]

When i had the money like you, i invested it with Philequity funds. 10k miminum. That was around 4monyhs ago. right now value ng fund ko according to my agent is 10,850. not bad for 4 months no? Me increase na agd ng 850pesos.

 

Highest TD interest right now is PSbank at 6% per annum. thats 600php for 1 YEAR TD. Highest rural bank i've seen so far is Rural Bank of Paranque, double your money for 5 years, with interest of 20% P.A, but minimun is 50k, plus lock in period na 5 years.

 

Mas maganda Mutual fund, well at least para sa kin.

 

Better yet, attend Citisec Online, How to invest in the Stock market today seminars. Every Tues and Thrus 2pm - 6pm. You'll learn alot, they have student promo account minimum is 5k only.

 

check them out dude

[redshirt]

When i had the money like you, i invested it with Philequity funds. 10k miminum. That was around 4monyhs ago. right now value ng fund ko according to my agent is 10,850. not bad for 4 months no? Me increase na agd ng 850pesos.

 

Highest TD interest right now is PSbank at 6% per annum. thats 600php for 1 YEAR TD. Highest rural bank i've seen so far is Rural Bank of Paranque, double your money for 5 years, with interest of 20% P.A, but minimun is 50k, plus lock in period na 5 years.

 

Mas maganda Mutual fund, well at least para sa kin.

 

Better yet, attend Citisec Online, How to invest in the Stock market today seminars. Every Tues and Thrus 2pm - 6pm. You'll learn alot, they have student promo account minimum is 5k only.

 

check them out dude

thank you ver much mate. WOW! 5k and Im a student. Sounds bloody perfect to me. I can already fulfill my Boiler Room fantasy.

 

The Philequity sounds nice. Do they have a site so I can read about it more?

[DrHandcuffs]

Hey Alex, thanks for all the useful info. By the way, the PSE website has an investment game where anyone can play. You're given P1 million play money yata and can invest in any stock that you want. It's a good way to learn the ropes of the stock market.

 

When i had the money like you, i invested it with Philequity funds. 10k miminum. That was around 4monyhs ago. right now value ng fund ko according to my agent is 10,850. not bad for 4 months no? Me increase na agd ng 850pesos.

 

Highest TD interest right now is PSbank at 6% per annum. thats 600php for 1 YEAR TD. Highest rural bank i've seen so far is Rural Bank of Paranque, double your money for 5 years, with interest of 20% P.A, but minimun is 50k, plus lock in period na 5 years.

 

Mas maganda Mutual fund, well at least para sa kin.

 

Better yet, attend Citisec Online, How to invest in the Stock market today seminars. Every Tues and Thrus 2pm - 6pm. You'll learn alot, they have student promo account minimum is 5k only.

 

check them out dude

[joss]

ang gusto ko lang sa mutual fund pag sumadsad ang stock market di ka masyadong mayayari. subok ko na yan nung 1997 nako huwag na sana ma ulit ay talagang marami na dale, yung mga malalaki kumpanya nag ka pilay pilay... yung mutual fund ko buhay pa rin. matagal na philequity at matindi yan kahit pa sad sad ang market eh kumakana yung iba pag maganda ang stock market ok ewan ko lang pag bagsak ng market (huwag naman sana).

[redshirt]

Hey Alex, thanks for all the useful info. By the way, the PSE website has an investment game where anyone can play. You're given P1 million play money yata and can invest in any stock that you want. It's a good way to learn the ropes of the stock market.

I tried that pero kailangan sabay ka sa takbo ng markets. umaga palang naglalaro ka na hanggang noon-ish.