EIP vs Mutual Funds

[rescyth]

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Sure mutual funds does way higher than 10% annually but also take note that 50% in stocks is also just a conservative amount, it can do way higher than that.

50% equity growth is already a phenomenal return.

[makie]

@benjiqui:

Mutual funds and stocks are both investments and investments carry along them risks. Even starting a business has risks. The unpredictability of the market is one of the risks (the highest risk probably) but it could be managed by several analysis techniques. Though these methods aren't 100% foolproof, they at least decrease the risk by "predicting" the market behavior. History shows that the price action moves by patterns. All indices show such patterns which makes investing/trading in the stock market scientific or an art, not a guessing game or gambling as what many people think about it. That is how some investors and players make really significant gains.

@rescyth:

I reviewed some of the charts and noticed that many companies grew by at least 50% at some point in their history. Most of these companies even did it before 2008. IMO, 50% is very achievable as long as we're in the right company.

[rescyth]

@rescyth:

I reviewed some of the charts and noticed that many companies grew by at least 50% at some point in their history. Most of these companies even did it before 2008. IMO, 50% is very achievable as long as we're in the right company.

You meant the stock value d i? yes very possible and also very possible sd na bsag MF.

But if we are talking about returns, then 50% is still phenomenal

[Metz]

bottomline if we want better gains, stocks is the better option. as long as willing ta mo take ug time to study the company and trends. but if dili then mutual funds will be better kay fund managers will do it for us. although dili kaayo dako ang gains.

average sa equity mutual funds is pegged at 12% per annum, but if we make good decisions in stocks mas dako jud ang performance.

[benjiqui]

[QUOTE=makie;9591604]@benjiqui:

Mutual funds and stocks are both investments and investments carry along them risks. Even starting a business has risks. The unpredictability of the market is one of the risks (the highest risk probably) but it could be managed by several analysis techniques. Though these methods aren't 100% foolproof, they at least decrease the risk by "predicting" the market behavior. History shows that the price action moves by patterns. All indices show such patterns which makes investing/trading in the stock market scientific or an art, not a guessing game or gambling as what many people think about it. That is how some investors and players make really significant gains.

@rescyth:
....." price action moves by patterns" ? those are just positive indicators,
maybe you mean the "economic cycle" ? even the experts does not rely
on this anymore. even the latest 2 minutes 9.0 magnitude earthquake in
Japan, when it happened, by the time people pulled out their money in
the market, it was too late. investing/trading in the stock market to some people is part scientific or an art and part listening to vibrations...
... don't tell me you don't speculate... can't blame you because I do...
and thats what make this game, if I may call it interesting... just my 2 cents....

[benjiqui]

@benjiqui:

"Much lesser gains" means that your gains in mutual funds are generally lesser than those in stocks. So far, I have yet to see a mutual fund company's NAVPS go up by at least 100% in a year. Several companies listed in the PSE was able to do that, even just in months. Figures don't lie.

Age? It doesn't only apply in mutual funds but in stocks as well. Time is universal in investments.


This is a very subjective question and would vary from person to person but I will answer you with math.

Assuming you invested P100,000 and redeem it after 10 years (without any addition in between). Your average rate of return in mutual funds is 10% annually while in stocks is 50% (and yes, both are conservative numbers provided that you're really taking investing in stocks seriously and not just putting money hoping that it will just grow anyway).

After 10 years in mutual funds, you gained P159,374
After 10 years in stocks, you gained P5,666,504

What if you consistently added P100,000 every year for 10 years (same rate of returns)?

After 10 years in mutual funds, the future value of your investment is P2,012,490.95
After 10 years in stocks, the future value of your investment is P22,766,015.63

I'm not saying that the mortality rate in stocks is that good because majority of the investing and trading population in the stock market loses but if you'll just do your homework well and be good in analyzing and looking for good stocks, your chances will increase significantly. After all, you are investing, not speculating. Great gains doesn't come easy. Which would you prefer anyway, P2M or P22M after 10 years? Also take note that the value of P2M 10 years from now might not be the same as P2M today, it might decrease due to inflation.

Sure mutual funds does way higher than 10% annually but also take note that 50% in stocks is also just a conservative amount, it can do way higher than that.

10% is good but if you can find something higher, why not go for it?

all these mathematical computations are pure assumptions.. I wish
these are real....nobody knows how the stock market behaves in the
next 10 years... with everything happening everyday around the world,
nobody knows,....... I will be happy with 12 % and have a good nights
sleep... and for those who are not happy even at 50 %....where are
they now ?.... see you in ten years.

[Theko]

if you are young, have time to research about companies even just once a month, and are willing to take risks(risk taker), direct investment in the stock market is for you

however if you are heading towards retirement, don't have the heart for risk(risk averse) , then mutual funds are for you.

and again, i go for stocks because i don't believe that diversification is the key to my future. learn to read financial statements so you can focus on companies which have strong fundamentals. kay even if mu.naog na ang market value sa shares na imu gkuptan tungod sa recession, if strong companies na, eventually ma.bawi rana and even mu.saka pa ug maayu in the future. Patience lang.

[jeshcel]

hehehe nindota basahon ani diri oi, naa gyud ta mahinuktokan. nindot ni kay exchange of ideas

[neo4596]

hehehe nindota basahon ani diri oi, naa gyud ta mahinuktokan. nindot ni kay exchange of ideas

I agree bro. Naa koy EIP krn and im still observing kung up to what percentage jud ang gain na iyang maabot in a year. Sakto pud to ilang gi-ingon about over diversification. Mo lesser jud imong gain but ang advantage mo lesser pud imong risks. Currently im holding 6 stocks. I don't know if i have over diversified my portfolio. So far ok pa man pud ang performance..

[medwarc]

nice thread mga bro...