Friday, February 22, 2008

Risks of Mutual Fund

The risk-reward concept is basic in investing. To be successful you must know the level of risk for each investment. The higher the risk, the higher the reward.

I tried to compute this risk-reward by computing the standard deviation of NAVPS of each mutual fund in the Philippines. These mutual fund belong to the growth sector mutual fund. They are mutual funds which invest mostly on stocks or equities.

The higher the standard deviation, the higher fluctuation of NAVPS, hence, higher risk. As can be seen from the table there are two mutual funds which have very high standard deviation.

Saturday, February 16, 2008

Mga Dapat Alamin sa Pag-Invest sa Mutual Fund

Tatlong taon na ako na nag-iinvest sa mutual fund. Bago ako nag-invest halos isang taon ko muna pinag-aralan kung paano ito tumatakbo at paano ka kikita dito. Sa loob ng tatlong taon, may mga natutunan ako na dapat malaman bago ka mag-invest sa mutual fund. Ito ang mga sumusunod:

1. Alamin ang prospectus ng kompanya o mutual fund. Sa prospectus nandun ang mga objective, historical performance, investment strategy, stock porfolio at management ng mutual fund.

2. Ang mutual fund investment ay di sigurado, nagbabago ang halaga ng mutual fund araw-araw. Kaya bumili ka ng share kapag mababa at magbenta ka naman ng share kung mataas.

3. Para mamaximize mo ang investment mo sa mutual fund, dapat pang matagalan ang investment mo. Kung ikaw yung tipo na hindi makapag-hintay ng dalawang taon, sa stock market ka na lng mag-invest.

4. May tinatawag na sales load at exit load. Ang halaga ng mga ito ay nagbabago kung gaano kadami ang investment mo at kung gaano katagal ang investment period mo.

5. Maliban dito me nakatagong cost na di nila sinasabi, halimbawa sa merong documentary fee na babayaran ka kapag binigyan ka ng share certificate at transfer fee pag sa branch ka lng bumili.

6. Magandang bumili ng share pag mababa ang stock market index. Ang stock market index ay mababa karaniwan tuwing me kaguluhan dito sa bansa at sa America. Lalo na pag me bomba, mass resignation, impeachment sa politika sa Pilipinas. Naapektuhan din ang stock market ng mga tinatawag na economic indicators, pag-mababa ang GDP o GNP nating o kaya naman patuloy tumataas ang langis at halaga ng dolyar sa piso.

7. Makakatulog ka ng mahimbing dahil ang investment mo ay nasa kamay ng mga professional. Kaya hindi kelangang araw-araw o oras-oras tingnan mo sa dyaryo ang performance ng mutual fund mo.

Sunday, January 27, 2008

Simple Saving Tips

Just last year our office issued a policy requiring all employees of DepED to wear uniforms. Initially, there was resistance and I must admit I am one of them. Before, nobody bothered us with our clothres whenever we come to work and the clothing allowance was never really spent in purchasing office uniforms. As for me, I can't recall if I ever saved them. Maybe I spent them to something else which I can no longer recall.

Before when we were not yet required, we come to the office in formal or semi-formal attire. Everyday, I spent a lot of time thinking what to wear so as to avoid repeating the same dress or style the previous day. As a result, I often buy clothes to replace the frequently used clothes. Instead of saving my clothing allowance, I spent them in buying new clothes.

But now we have uniforms, I no longer worry with what clothes to wear. I am able to save the clothing allowance because, my office uniform still looks new.

My advice is wear your office uniform always.

Monday, January 21, 2008

Mutual Fund

Isang simpleng paraan para makapag invest ay ang mutual fund. Madaling maintindihan ang konsepto ng mutual fund. Mga investments ng indibidwal na investors ay pinagsama sama at pinapahawakan ito sa isang qualipikado at mahusay na fund manager. Ang fund manager ang nagsasagawa ng mga paraan kung saan ilalagay ang mga investment ng mutual fund company.

Kasalukuyan akong investor ng PhilEquity Mutual Fund. Ngayon ay magandang bumili ng mutual fund kasi ang stock market ngayon ay mababa. Siguradong mura din ang value ng PhilEquity ngayon.

Eto ang status ngayon ng psei.

Sunday, January 20, 2008

Simple Investing

I started late in my investing. Although, I'm frugal when I was still young I haven't develop the skills of saving and allocating my money to where it could earn intererst. In fact, I was already 25 years old when I learned about how compounding interest works. From then on, I decided to be really serious in my dream to have financial independence and stability.

Here's my first tip on how to invest without making any effort.

In our office at the Department of Education, I applied as member in the DepED Credit Cooperative. Although, I rarely apply for a loan, I made a special arrangement with them that every payday they take Php 500 from my salary which shall for part of my savings. Simple huh.
At Php 500/month, you have Php 6,000 saving per year without ever making a real effort of saving!