Thread Request: Bonds

[MK]

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YEs bro, I am referring to that UITF. One of our kabayans here shared that they have invested into this so-called "Balanced Fund" in BDO. Morag baya sad ko ug na-attract but again, I am a bit reluctant whether I will also try that product or not given the fact that I don't understand the mechanics.

just a cent from me...
I think UITF/Mutual Fund (not the Balanced-Fund or Equity based Fund kay part of these 2 are invested into stocks) are your better option labi na kay naa ka sa gawas - easier to manage UITF/MF from abroad.
I'm not saying direct investment into bonds like RTB, TBills/TBond/FXTN are bad...just saying, you will get better return in UITF/Mutual fund that are invested into Fixed-Income securities plus the added convenience of making it grow further through regular contribution like doing the peso/dollar-cost averaging.

Also, for small investors, UITF/Mutual Fund are just better option I think kay ginagmay ra man gyud imo ma contributed at probably frequent interval. Cost-averaging works wonder for this kind of investment. Ang mga longer term na Fixed-Income securities man pud gud requires bigger money to start with and if you don't actively trade them, you only gain the market return...

I'll quote the president of FAMI Mutual Fund (a Metrobank Group) about this topic...their Fixed-Income Mutual fund (SALFIF) racks up 12.34% return last year.

It really makes sense to leave your fixed income portfolio in a mutual fund because fixed income instruments require economies of scale. You cannot really trade bonds effectively for principal of below Php 50 million. What a fixed income fund manager does to gain returns above the market is to actively trade the 25 year FXTN which is very liquid and quite volatile. A trader who is deeply involved in trading the 25 year has a better chance of racking up gains than one who does it sparingly.

Anyway, if you are really into fixed-income base UITF/Mutual Fund (or even bonds) nya naa ka sa gawas an all-in-one service gyud maayo...which I think for now BPI can offer better than any bank (you can buy bonds on BPI trading platform too btw)...try checking their online investment banking...you can buy/accumulate/sale investment products online after you enroll your account.

[arclops]

YEs bro, I am referring to that UITF. One of our kabayans here shared that they have invested into this so-called "Balanced Fund" in BDO. Morag baya sad ko ug na-attract but again, I am a bit reluctant whether I will also try that product or not given the fact that I don't understand the mechanics.

If I were to purchase RTB's, I will just walk into any branch of those banks that you recommend (BDO,Chinabank) and address to the manager my requirement?
Requoting your statement bro
Can you please explain this further in layman's term? (pls.bear with me, cos I am not familiar with bank terminologies)

Thanks

It is best explained by way of an example...

For RTB:

Date - February 2012
Principal - P50,000 (amount nga imong iinvest)
Coupon Rate - 5% (interest on principal)
Dividend Payment - every quarter (ang interval kung kanus-a ka magdawat sa interest based sa coupon rate)
Maturity - 5 years (kanusa nimo makuha imong principal)

Dividend/quarter = (50,000 x 0.05 / 4) x 0.8 -->> net amount ni tungod sa tax nga 20% maong naay multiplier nga 0.8 or 80%
Dividend/quarter = P500

Sa case sa BPI, the dividend will automatically be credited to your account

Every May, August, November and February of every year, for 5 consecutive years, magdawat ka P500 as dividend payment...provided dili nimo i-preterminate imong principal

Total dividends for 5 years = 500 x 4 x 5
Total dividends for 5 years = P10,000

As you can see gamay ra jud ang appreciation sa imong kwarta....but this is considered the safest form of investment bcoz this is guaranteed by the Philippine government. This is advisable sa mga conservative-type nga investor....it's for capital preservation...imo lang gi-maintain ang purchasing power sa imong kwarta. So if you are one, then this is a good start before ka mosulod sa MF/UITF.

[istoryamember]

basin ganahan mo mo read about ani http://www.abs-cbnnews.com/business/...-sale-february

[arclops]

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