Tag Archives: UITF

How to Start Investing?

09 Saturday Feb 2013

Posted by in Daily Dose, Stock Market

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This is the same question that I got one year ago, when I saw a blog post and Facebook group comments last year.

I started investing in Stock Market about a year ago. If you do not know how to start stock market better check my post on “How to Start on Stock Market”. Starting in investing is all about mind setting, you have to make a mindset that there is no business without risk and if you don’t want to take risk you cannot gain.

There are lot of ways to start in investing and it depends on your risk appetite. If you are not a risk taker and you do not have any mentor or you are lazy to study on how to invest, I would suggest starting in mutual fund. In mutual fund there will be a fund manager who will take care of your finances. They have the full discretion on where to put your money. By the way Mutual Fund is not a risk free investment. But risk is lower than going to stock market by yourself.

You may also check your banks for UITF (Unit Investment Trust Funds).

As of now I don’t have any investment in Mutual Fund but I am planning to take a mutual in the future as part of my diversification. It is a decision, to do it by my own for the mean time that is also the reason why I made an account with COL Financial.

I have also read a lot of book saying that an emergency fund (3 to 6 months equivalent of your monthly expenses) needs to be establish first before investing as well as insurance coverage. But as of this time, I have not made any insurance which I also plan to take this year.

As a start, I make it a point that I have updated my SSS and my other small insurance coverage.

I am considering my Stock Market Funds as my emergency fund since it is a liquid investment that I can take out anytime in the future if need arise.

As a new investor or would be investor you need to change you financial formula from:

Income – Expenses = Saving Investment

to

Income – Tithing – Savings & Investment = Expenses

I believe that we need to give our tithes for the work of God’s ministry in the earth. I always believe that the bible is the source of information about investing. It is also what Zig Ziglar, Robert Kiyosaki, Bo Sanchez, Chinkee Tan and Other known book author believe.

I also suggest joining forum, Facebook group for mentoring purpose. There are lots of Facebook group who have very helpful members who are there to answer you basic question for free. And don’t forget to join our mailing system for you to be updated on our post. I am planning to be more active in writing on this blog.

How To Start Investing in Stock Market

03 Thursday Jan 2013

Posted by in Stock Market

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Stock MarketYesterday I shared a Youtube video in my Facebook wall that says more and more Filipinos are now starting to invest in stock market. The post catch the attention of some of my online friends as well as relatives, which eventually started a conversation about stocks. Here are some of the questions and answer that I made during my conversation for the benefit of those who also want to learn investing in Stock Market

I have heard that investing in stock market is risky and it is like gambling? Are you now into gambling Dexter?

Well this is my answer, Stock market has two kinds, one is investing and other is trading. When you say trading, it is almost equal to gambling since, what you bought today might be sold out before the market close or could be sold by tomorrow. It is good if the market goes up, but what if the market goes down it is a sure lost. Trading is also buying speculative stocks, which means that a trader is buying a stock which does not have any history or anything to prove as a company. They just buy because of rumors that it will be high tomorrow.

I must confess that when I started stock market, I did the same because I do not know the difference of investing and trading. I do not have any mentor and I just visit some blogs and forums for information. I have not even read any book to learn first before going to stock, but as what the saying goes experience is the best teacher.

Investing is buying stocks with good market reputation, they are usually called blue chips stocks. After buying, investors tend to let their money grow for some time. It might be 1 year, 2 years, 10 years or more. If you know Warren Buffet, this is the system that he is using. He study the market buy the sticks and forget about it and he let it appreciate from time to time. Investors also earn in two ways, one is price appreciation and the other is through dividend. There are time also that investors will buy stocks and wait for his Target Price before selling his shares.

So is it Risky to Invest in Stock Market?

Actually in reality there is no safe investment. Investment will tend to gain or lost. As an investor you need to be financially literate to know what you shall behave in good times or bad times. If you cannot watch how the market moves, it would be better to go to Mutual Fund (less risk) or Equity Fund (high risk), where there is fund manager who can watch over the movement of your money. I have heard that Mutual fund performs well last year which have 30+% interest. Of course nobody knows if it will still be the same this year. Your risk appetite will definitely determine your gain. Less risk – less gain and the higher the risk – the higher the gain. I myself have 17.78% gain last year.

So how much do I need to start to Invest in Stock Market?

Good to inform that nowadays you can start at an amount of 5,000 through colfinancial.com, all my stock transaction is made through online since I am outside the country I managed to get a broker that can serve me through online. One better thing in COLFINANCIAL is their EIP system, where they will allow you to invest on a monthly or weekly or quarterly or whatever is your preferred frequency of payment with a fix amount. It is also called Peso Cost Averaging

So how did you enroll in COLFINANCIAL?

I have filled up their application form, then scan the documents and send it to Colfinancial for checking and after they have checked my details they told me to send the original documents to their Ortigas Office. After they have received the documents they send me my login details and the bank reference that I will use to start investing in the stock market.

There are still lots of Q&A that I have responded yesterday and I think I can make the other conversation in future post. So keep on sending question though the comment section so that we would be able to respond to your question. If I can’t answer the question I will try to ask some of friends to respond for us. Make Sure to provide us your email as shown in the side bar for you to be updated on our post.

Photo Credit : Flickr username 401(K) 2012

Update : Great Information from Philippine Stock Exchange on Investing Procedure ( Courtesy of The Global Filipino Investors TGFI Facebook Group)