HULING KAGANAPAN : BSP, SEC, DTI, CIC, TransUnion, Institusyong Pananalapi

StolichStolich curbside prophet PExer
Hi everyone,

I’d like to ask some questions regarding the below illustrated investment funds from an insurance company. Please advise if the fund value is ok or not; or if there are other banks/institutions better than this.

Assuming the invested money is PhP 100,000, the values will be, at different rates:

If fund value is at 4% per annum (pessimistic; lowest rate)
After Year
1 98,628
2 102,423
3 106,376
4 110,492
5 114,784
10 141,540

If at 8% per annum (average rate)
After year
1 102,362
2 110,339
3 118,961
4 128,282
5 138,340
10 205,121

If at 10% per annum (higher end; could still get higher)
1 104,230
2 114,407
3 125,610
4 137,926
5 151,450
10 245,606

The amounts illustrated are net already of management charges
Amounts can be partially withdrawn anytime (but fund values will change)
100K is assumed to be invested in 50% balanced fund & 50% bond fund (though I have the right to change the proportion, say, I can decide that 70% will go to balanced fund and 30% bond fund)
This does not have withholding tax
This value has death benefit already (life insurance)
Can add minimum 10,000 thereafter

Is this good enough?

thanks for your expert advise


  • rolloverrollover Member PExer
    dont put weight in hypothetical figures. id look at the historical performance of the funds over a period of time--say 5, 3, 1 year. then compare it with other funds of the same type. here's a good resource site of mutual fund performance:
  • StolichStolich curbside prophet PExer
    many thanks rollover. that site was very helpful. was able to assess the performance of that company above and they did quite good historically. of course i understand past performance cannot assure future perf.

    i notice the NAVPS is kinda high right now, is this a right time to (start) investing on the above illustration or is this question stupid?
  • rolloverrollover Member PExer
    if you're in long-term i believe its more important that you establish the fund has performed well through the years (in good and bad times) and that you invest regularly. there's a simple strategy to investing in mutual funds called dollar-cost averaging, which is explained here:

    look at historical performance critically. in just the past months the bond and equity markets went from one extreme to another. you can gauge the performance of the fund manager within this microcosm of market time. for bond funds, from 2nd half '05 to april '06, we saw the uitf bubble, resulting in 1%-2% monthly increase in uitf NAVs during this period. the bubble burst in may '06 and reached its worst in june '06. similar thing with equities albeit slightly different timeframes, compare fund performance with the pse index. now, markets are pretty much volatile, especially equities.
  • ahockahock Member PExer
    Guys; sa palagay nyo ba say you have enough money, saang mutual fund companies nyo invest or at least anong company ang iko consider nyo? sa equity, balance at bond?
  • bluetheherobluethehero unsung hero PExer
    rollover pano icocompare sa PSE index? is it by trending? im thinking of investing also, di ko pa lang talaga alam kung saang mutual fund company.
  • rolloverrollover Member PExer
    in the icap site, you can use the performance of 'philippine stock index fund corp' as proxy for the psei. that fund is an equity index fund--an index fund is invested in the same basket of equities contained in a specific index and mirrors that index's performance. of course, using the psei as benchmark, you'd like to see your stock fund perform better than it.

    note that the icap site is limited to mutual funds. there is another set of funds available called uitf which is offered by banks. afaik, there is no similar site like icap for utifs. you'd have to visit the bank's site for the performance of its uitf products. there's a thread here on uitfs one can browse through. the business world paper publishes performance of uitfs--weekly i think.

    as to which type to invest in--equity, balanced, or bond--it depends partly on how much risk you are able to take. deciding which and how much to invest is called asset allocation, again explained in investopedia:

    in the links given, do read the 'related links' (which go in more detail) listed below the term definition.
  • HaloperidolHaloperidol I'm No Spider Man PExer
    Di ako fan ng balanced fund, sa tingin ko mas less risky kung kung may part equities ka at part fixed income.
  • manabsmanabs Member PExer
    Di ako fan ng balanced fund, sa tingin ko mas less risky kung kung may part equities ka at part fixed income.

    Isn't balanced fund part equity and part fixed income?
  • HaloperidolHaloperidol I'm No Spider Man PExer
    yes they are, but for me mas okey kung seperate sila
  • bluetheherobluethehero unsung hero PExer
    what do you guys think of Kabuhayan fund?
  • rolloverrollover Member PExer
    personally rather than investing in a balanced fund, id invest in one good equity fund and one good bond fund. as to anything particular, philequity appears to be a good equity fund. i should disclose though that i currently dont have any investments in mutual funds or uitfs. just a little advice, take whatever you read in forums with a healthy dose of skepticism--use it as a starting point, then do your research. :)
  • ahockahock Member PExer
    rollover.... aside from philequity, what other mutual fund companies you think, in your humble opinion is ok.... equity, balance and bond
  • rolloverrollover Member PExer
    havent looked at most bond and balanced funds. looked at philequity when i had been considering investing in equities. i had investments in bond uitfs--placed last year and redeemed most thankfully before the wholesale panic redemptions were fully in motion.

    boss hulk in the uitf thread posted the top performing mutual funds and uitfs from business world in the midst of the meltdown. for uitfs i remember ibank--which wisely even held all cash in its portfolio for a period. ekklesia was among the top for mutual funds. unfortunately i believe its not open for the public.
  • starpreneur009starpreneur009 Member PExer
    edited August 7
    Like Steve Jobs or Mark Zuckerberg

    I have been asking myself that question
    I am a college student but compared to these guys they didn't finished school

    What does these guys have that I don't?
    I mean naiisip ko na rin minsan that is college a good investment nga ba or just a waste of time and money and I should just learn what I want to learn?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    My attitude toward higher education is simple - it is better to have and not need it than to need and not have it.

    Steve Jobs's daughter Lisa earned a bachelor's degree from Harvard. His son Reed Paul is attending Stanford. If Steve believed that college wasn't worth anything, why would he put his own children through it? Closer to home - consider the case of John Gokongwei, who was unable to earn a degree because he was too busy trying to survive after the war. His only son and his presumptive successor earned a degree in the United States.

    Jobs and Zuckerberg were good AND lucky. They had opportunities and ability which they took advantage of at the right time.

    The problem with opportunities is that they don't make themselves available equally to everyone. If you are not so fortunete, it makes sense to have Plan B. A college education, if done well and done right, is a good Plan B. Also Plan C, D, E, F, and G.
  • Ducati_DiavelDucati_Diavel PEX Big Boss PExer
    edited July 31
    BSP to keep rates on hold; cut SDA rate to curb peso rise - poll

    MANILA - The Philippine central bank will likely stand pat on interest rates at its meeting on Thursday, a Reuters poll showed, but will probably cut its special deposit account (SDA) rate for the third time in a row to support growth and contain the peso's strength.

    All 12 economists polled by Reuters said the Bangko Sentral ng Pilipinas (BSP) would keep its main policy rate steady at a record low of 3.5 percent, and most of them forecast a 50-basis-point cut in the short-term special deposit account rate.

    "Even though the peso has depreciated over the past month most trade bodies consider the level to be still too high," said Vaninder Singh, economist at Royal Bank of Scotland (RBS) in Singapore.

    The central bank has lowered the SDA rate by more than 150 basis points since July 2012. The impact of the cuts, however, has yet to be felt with money parked with the SDA window at P1.93 trillion in the week ending April 5, just slightly down from a record P1.95 trillion in the week ending March 15.

    Reducing the SDA rate further is expected to discourage dollar inflows and dampen the peso's rise and divert funds to the real sector to boost economic activity.

    A 50-basis-point cut will bring the rate to 2.0 percent, which is still higher than the rates on bank deposits and short-term government securities.
    The BSP has spent billions of pesos to keep it from appreciating too quickly and cushioning the impact of a strong currency on exports, foreign exchange remittances and revenues of the business process outsourcing sector, all key drivers of economic growth.

    Capital inflows are expected to continue after the country's first-ever promotion to investment grade by Fitch last month, and with the other rating agencies likely to follow suit later in the year or next year.

    "We will be active in deepening our macro-prudential measures given expectations that there will be more (foreign capital) inflows to come," BSP Deputy Governor Nestor Espenilla told reporters over the weekend. "We will continue to review our toolkit."

    The peso is down 0.73 percent to the dollar so far this year. It slid to a near six-month low last week as the growth pace for remittance inflows slowed and as offshore funds sold the currency.

    But analysts in a Reuters poll expect the currency to strengthen against the dollar, with the median forecast of P39.45 to the dollar by end-March 2014.

    To help manage the impact of foreign fund flows on the currency, the central bank on Thursday eased further rules on foreign currency transactions to encourage buying of dollars and stem the rise of the currency.

    Policymakers have repeatedly said they would let the market determine the exchange rate but were ready to participate in the market to avoid sharp swings.

    "Banks have ample (dollar) liquidity, but in case banks need more dollars, BSP will be ready to sell," Assistant Governor Cyd Amador said. "The BSP is ready to sell or buy currencies to maintain orderly market conditions."
  • Ducati_DiavelDucati_Diavel PEX Big Boss PExer
    Bangko Sentral seeks additional capital

    Burdened by huge losses from its dollar purchases and interest payments, the Bangko Sentral ng Pilipinas has asked for additional capital from the government, saying financial support would help ensure monetary stability given the surge in foreign capital and domestic liquidity.

    The BSP said fresh financial support from the government would come in handy as the substantial foreign exchange inflow and rising domestic liquidity posed risks of faster inflation and a steep appreciation of the peso if not managed properly.

    “Yes, the BSP has indicated to the government the need for additional capitalization,” BSP Deputy Governor Diwa Guinigundo told the Inquirer.

    The request for financial support followed a statement from the Department of Finance that the government intended to settle by the end of the year the remaining P10 billion worth of capital that it owed the BSP and that it might extend more if the latter asked for it.

    “The economy has grown and the financial system has expanded many times over, and yet the BSP’s capital base has remained the same. We need more resources to further enhance the effectiveness of monetary operations and monetary stability,” Guinigundo said.

    Under the charter of the BSP, which was created in 1993 to replace the old central bank, the government was mandated to infuse P50 billion in fresh capital. However, due to budget constraints, the government gave the BSP only P10 billion in its first years of operations. With an improved fiscal situation and prodding by monetary officials, the government gave the BSP another P10 billion in December 2011 and another P20 billion in December 2012. This leaves P10 billion more in capital that the government owes the BSP.

    Finance Secretary Cesar Purisima was quoted as saying last month that the finance and the budget departments have agreed to disburse the balance by the end of this year. He also said that given the need to ensure that the BSP remained effective in the delivery of its mandate, the government was open to requests for additional support.

    Due to its heavy dollar purchases and interest payments, the BSP has been posting losses since 2012. Its latest income statement showed that in the first 11 months of 2012, it incurred a net loss of P86 billion, surging from P33.69 billion in 2011.

    The dollar purchases were said to be necessary to help temper the peso’s appreciation. The peso gained about 7 percent against the dollar in 2012 to become one of the fastest-appreciating currencies.
  • Ducati_DiavelDucati_Diavel PEX Big Boss PExer
    BSP tells OFWs: Spend money wisely
  • Ducati_DiavelDucati_Diavel PEX Big Boss PExer
    BSP Slashes SDA Rates Further, Overnight Rates Unchanged (TSTOCK - 04/25/2013)

    Interest rates on the Bangko Sentral ng Pilipinas (BSP)'s special deposit accounts (SDA) now stands at a historic low of 2 percent after the Monetary Board decided to reduce another 50 basis points from the said facility. The key policy interests, however, were left unchanged, with the overnight borrowing or reverse repurchase (RRP) facility still at 3.50 percent and the overnight lending or repurchase (RP) facility at 5.50 percent.

    The reserve requirement ratios were also maintained. In its statement, the BSP said its decision was based on its assessment that the inflation environment remains manageable, and the projected inflation path remains within its target range for 2013 and 2014. Furthermore, the central bank said the strong domestic growth prospects give it more flexibility in managing the efficiency of the SDA facility.

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