Savings and Investments

[lurker06]

Hi Everyone!

Im a fresh grad who's lucky enough to land a decent paying job. Currently I'm still staying with my parents so I dont really have to worry about paying bills and stuff. So uhhm I figured, it would be in my best interest to save up for my future rather than waste my money on mere consumption.

Thing is, I dont want to put my money in a time deposit account given the low interests rates. I've heard stuff about investing on treasury bills and mutual funds, but I'm clueless about these. Can anyone shed some light on these? Basically I want to invest on stuff that have better return of investments than just putting it in the bank.

Thanks in advance. :bashful:

[DaNa8]

Check out the Mutual Fund/UITF and Investing on Stocks threads. There are lots of info there.

[tidus1203]

And since you're young I would urge you to try trading the stock market they can even give better returns than bonds or mutual funds.

[leporidae]

^ From lurker's original post, he's obviously inexperienced in any kind of investing whatsoever. I think mutual funds would probably be more suitable at this stage.

[mac_bolan00]

unless we're talking 7-figure amounts, i suggest you start with passbook and time deposits. think of maximizing interest earnings when your money is way past 10mn or when YOU are way past 50. right now, focus on accumulating principal.

[Spyfrat]

silver coins

[leporidae]

unless we're talking 7-figure amounts, i suggest you start with passbook and time deposits. think of maximizing interest earnings when your money is way past 10mn or when YOU are way past 50. right now, focus on accumulating principal.

I disagree. not every multi-millionare inherited the money. A lot of them started small. I think he should learn to invest early on, so that his experience will guide him when he's older.

[leporidae]

In investing, you must first decide what risk you are willing to take. A fresh grad like the threadstarter can afford to lose his capital since he is still financially supported. He still has decades of working life left to accumulate capital. He should therefore invest in relatively risky investments (no, not commodities) like direct equity, as opposed to bonds, to maximise expected return.

[mac_bolan00]

i disagree also. savings is one's dominant resources and investments form only a percentage of that (read: that part of your savings you're willing to lose in a wink). whether you're self-made or an heir, the first value you kearn is how to save. you want to lear to high-roll even before you're 21? fine. train as an analyst/broker. just this. a broker uses other people's money, not his. again, there's both the problem of having an amount that's material, and practical expertise.

[leporidae]

there's both the problem of having an amount that's material, and practical expertise.

Which is why a fresh grad like him is in the perfect situation to invest. If he loses his money, it wouldn't matter that much. But the experience he'll gain will hopefully give him practical expertise as he grows older.

I do agree though that if a person is not willing to be totally commited into investing, he should just leave it to the experts. By experts I don't mean brokers, but fund managers. There are many listed investment companies that earn more than 20% pa.

[foolcha]

the younger you are the more risk you can take. i suggest you invest it in stocks if you have the time to learn, however if you don't have the time just put it in a mutual fund company or UITF.

[Quadrado]

For the 1st time I will totally agree with Tidus :rotflmao:

Better invest it in the Equity Market... If you will lose some money charge it to experience and treat it as if it is your tuition to your "post-graduate education in the stock market"

What is important is the knowledge you will be gaining after experiencing your first few gains/loss...

Goodluck and Merry Christmas *okay*

[scqg]

the younger you are, the higher risk you can take.

for newbies, uitf/mutual funds are highly recommended.

go for balance/diversified funds or equity funds. look for good fund managers - ING, metrobank, bpi..

[Call Jack]

eh kung mag-casino na lang kaya?? poker?? same risk, same result just like when investing...

[Quadrado]

eh kung mag-casino na lang kaya?? poker?? same risk, same result just like when investing...

In playing casino you are gambling and your wins will depend on your draw... :lol:

As opposed to the capital markets, if you know how to read the charts, the fundamentals and relate all these with current events I suppose you will have a hard time losing!!! *okay*

HAPPY NEW YEAR FOLKS... May 2007 be a good year for all of us!

[ducksoup]

Hi guys,

I've posted this question in another thread, but I have yet to get an answer. So, I'll try my luck here.

What investment instruments would you recommend for long term investors. Time frame would probably be about 5 to 10 years. Investment objective would be capital appreciation.

TDs are totally out of the question as I already have my money in a TD account.

Any help would be highly appreciated.

[C_ronaldo7]

Which is why a fresh grad like him is in the perfect situation to invest. If he loses his money, it wouldn't matter that much. But the experience he'll gain will hopefully give him practical expertise as he grows older.

I do agree though that if a person is not willing to be totally commited into investing, he should just leave it to the experts. By experts I don't mean brokers, but fund managers. There are many listed investment companies that earn more than 20% pa.

i totally agree with you sir, anyhow i just want to add that youre not limited to the stock market or the financial products that the bank offers, you could also try to open up your own business, or buy some condos and rent them out(if you already have enough cash)

[C_ronaldo7]

Hi Everyone!

Im a fresh grad who's lucky enough to land a decent paying job. Currently I'm still staying with my parents so I dont really have to worry about paying bills and stuff. So uhhm I figured, it would be in my best interest to save up for my future rather than waste my money on mere consumption.

Thing is, I dont want to put my money in a time deposit account given the low interests rates. I've heard stuff about investing on treasury bills and mutual funds, but I'm clueless about these. Can anyone shed some light on these? Basically I want to invest on stuff that have better return of investments than just putting it in the bank.

Thanks in advance. :bashful:

T bills - lower risk, lower returns

mutual funds - high risk, high returns

[Quadrado]

If you have balls of steel and won't get rattled by price volatility, invest in a mutual fund... As far as I know, the best record over a 3 year period belongs to PhilEquity Fund (30.++% annual return)

For more info visit, www.icap.com.ph

Hi guys,

I've posted this question in another thread, but I have yet to get an answer. So, I'll try my luck here.

What investment instruments would you recommend for long term investors. Time frame would probably be about 5 to 10 years. Investment objective would be capital appreciation.

TDs are totally out of the question as I already have my money in a TD account.

Any help would be highly appreciated.

[tidus1203]

Mutual funds are tame....

Try the basuras of the PSE. Now let's see if you have the balls of steel.... Sorry ha, kung aggressive na sa inyo yun kasi kung nagtrade ka ng stocks bali wala na ang mutual fund.

[C_ronaldo7]

Mutual funds are tame....

Try the basuras of the PSE. Now let's see if you have the balls of steel.... Sorry ha, kung aggressive na sa inyo yun kasi kung nagtrade ka ng stocks bali wala na ang mutual fund.

yea i agree that's why i suggest you go with mutual funds nalang medyo hassle rin kasi stocks eh mahirap manalo dun

[scqg]

Hi guys,

I've posted this question in another thread, but I have yet to get an answer. So, I'll try my luck here.

What investment instruments would you recommend for long term investors. Time frame would probably be about 5 to 10 years. Investment objective would be capital appreciation.

TDs are totally out of the question as I already have my money in a TD account.

Any help would be highly appreciated.

blue chips! or if you don't wanna trade yourself, go for equity uitf.*okay*

[C_ronaldo7]

kaso uitf's aint doing too well these days right, for me i'd go opening your own business muna, kasi di mo rin mashado feel kikitain mo if kaunti lang invest mo

[ducksoup]

Hi guys,

Thanks for replying to my post. Appreciate it much.

However, I was thinking of a more passive investment instrument where I can park some of my cash for a while -- an alternative to TDs.

Stocks are just too high maintenance. Don't get me wrong. I have nothing against stocks. It's just that you have to actively monitor and manage them. Right now, I have so much on my mind that regularly monitoring the market on a daily or even weekly basis would be a great burden.

Are blue chip stocks a good long term investment? Do they need active and constant monitoring?

A UITF is something that I am looking into, especially one that is primarily invested in fixed income instruments -- if such exists. Or, a mutual bond fund.

But, are these ideal investments where I can grow my savings over a long period of time? Bear in mind that I am not out to make a huge proft. I would just like to invest in something that would give a much higher return than a TD.

Are t-bills or bonds something I should look into?

Like I mentioned in my previous post, the time frame would be about 5 to 10 years.

[C_ronaldo7]

yea i suggest you with bonds nalang since like you said na nga stock are difficulty to handle

[ducksoup]

Can anyone tell me the interest rate/returns on tbills and bonds?

[Quadrado]

Mutual funds are tame....

Try the basuras of the PSE. Now let's see if you have the balls of steel.... Sorry ha, kung aggressive na sa inyo yun kasi kung nagtrade ka ng stocks bali wala na ang mutual fund.

You really don't get it do you? We are trying to give suggestions to a person and now you are suggesting basura stocks? :lol: Is this your usual case of trying to present yourself as someone who is more superior than the "average" person or you were really dead serious on your basura stocks suggestion?

Don't get me wrong little boy because I know what you are talking about, been burned before and somehow I manage to enjoy also a killing made though the capital markets once in a while...

If I were you, I will try to make it a resolution for the new year to tame yourself a bit in terms of your arrogance! :bop:

PEACE!!! *peace*

[tidus1203]

You really don't get it do you? We are trying to give suggestions to a person and now you are suggesting basura stocks? :lol: Is this your usual case of trying to present yourself as someone who is more superior than the "average" person or you were really dead serious on your basura stocks suggestion?

Don't get me wrong little boy because I know what you are talking about, been burned before and somehow I manage to enjoy also a killing made though the capital markets once in a while...

If I were you, I will try to make it a resolution for the new year to tame yourself a bit in terms of your arrogance! :bop:

PEACE!!! *peace*

Well I will say what I think and what I want, this being a public forum (as long as I know I am not breaking froum rules). If you dont like it, I don't give a damn! If you don't like me or you think I am an a$$ I also don't give a damn! :rotflmao: Now move on, boy.... Peace back to you!

And nope I was merely saying mutual funds are not aggressive especially the bond kind....

[leporidae]

Quadrado, like tidus said he was merely saying that one does not need "balls of steel" to invest in mutual funds and that the very high risk takers would invest in basura stocks.

[scqg]

kaso uitf's aint doing too well these days right, for me i'd go opening your own business muna, kasi di mo rin mashado feel kikitain mo if kaunti lang invest mo

uitfs not doing well? peso bond fund (assuming you invested jan '06 and never pulled out your investment) could have given you 15-20% p.a. return..equity funds - 30-50% p.a.

compare that to TD rates? way way better..

business? agree..provided you have a good business idea..if you're not into starting your own business, i'd say uitf is a good alternative..

BUT always remember..never put all eggs in one basket...diversify! *okay*

[bulataw]

if you really got the ball of steel
try hyip HAHAHA!!!
before you even blinked you lose it all HAHAHAH!!!

[C_ronaldo7]

uitfs not doing well? peso bond fund (assuming you invested jan '06 and never pulled out your investment) could have given you 15-20% p.a. return..equity funds - 30-50% p.a.

compare that to TD rates? way way better..

business? agree..provided you have a good business idea..if you're not into starting your own business, i'd say uitf is a good alternative..

BUT always remember..never put all eggs in one basket...diversify! *okay*

di mo rin kasi mashado mafeel *** earning in uitf's unless you invest in millions eh since fresh grad sha im assuming he's income is below 100000

[scqg]

di mo rin kasi mashado mafeel *** earning in uitf's unless you invest in millions eh since fresh grad sha im assuming he's income is below 100000

i beg to disagree. the main purpose of uitf is to allow investors (high or low amounts) to invest in gov't securities, equities, etc. with equal opportunities (see explanation below) thus there are different products available - money market, peso bond, balanced/diversified, equity fund depending on the investor's appetite.

just to illustrate my point:

investor A: 10k peso investment - 100 units at 100 navpu
investor B: 100k peso investment - 1000 units at 100 navpu

let's say after 3 months, both investors want to sell at the same time, assuming the navpu is at 110 at the time of selling, both investor A and B will get to sell at the same navpu..no prejudice to the amount invested (unlike TD where there is tiering - higher amount gets higher interest rate)..

investor A gets 11,000 pesos (100 units x 110 navpu)
investor B gets 110,000 pesos (1000 units x 110 navpu)

to make things simple, both investors (regardless of amount invested) still get the same return, which is 10% of their principal amount..


yea i suggest you with bonds nalang since like you said na nga stock are difficulty to handle

if im not mistaken, the minimum investment amount for bonds is 100k..so im not really sure if bonds are really for small time investors like him...plus you have to pay fees/taxes whenever you want to sell it (not saying it's free in uitf but it's already incorporated in the navpu thus you don't need to worry about it..)

btw, im speaking based from experience..i have invested in TD, uitf and equities for more than a year now..at the end of the day, it's still up to you..if you want higher return, then be ready to assume higher risk..just remember, always DIVERSIFY. *okay*

[C_ronaldo7]

i beg to disagree. the main purpose of uitf is to allow investors (high or low amounts) to invest in gov't securities, equities, etc. with equal opportunities (see explanation below) thus there are different products available - money market, peso bond, balanced/diversified, equity fund depending on the investor's appetite.

just to illustrate my point:

investor A: 10k peso investment - 100 units at 100 navpu
investor B: 100k peso investment - 1000 units at 100 navpu

let's say after 3 months, both investors want to sell at the same time, assuming the navpu is at 110 at the time of selling, both investor A and B will get to sell at the same navpu..no prejudice to the amount invested (unlike TD where there is tiering - higher amount gets higher interest rate)..

investor A gets 11,000 pesos (100 units x 110 navpu)
investor B gets 110,000 pesos (1000 units x 110 navpu)

to make things simple, both investors (regardless of amount invested) still get the same return, which is 10% of their principal amount..



if im not mistaken, the minimum investment amount for bonds is 100k..so im not really sure if bonds are really for small time investors like him...plus you have to pay fees/taxes whenever you want to sell it (not saying it's free in uitf but it's already incorporated in the navpu thus you don't need to worry about it..)

btw, im speaking based from experience..i have invested in TD, uitf and equities for more than a year now..at the end of the day, it's still up to you..if you want higher return, then be ready to assume higher risk..just remember, always DIVERSIFY. *okay*

yea pero un na nga as you have illustrated youre earnings in uitf will be very minimal if you only invested a small of money, just 1k in 3 months... you could earn more with your 10,000 in business imo

[leporidae]

yea pero un na nga as you have illustrated youre earnings in uitf will be very minimal if you only invested a small of money, just 1k in 3 months... you could earn more with your 10,000 in business imo

But the thread starter already has a job which occupies his time. I think he only wants a good alternative to putting money in the bank. Besides, businesses take time and effort, not to mention a good idea. I do agree though that investing only really pays off when the capital is substantial.