Author Topic: Are mutual funds/uitfs such as equity funds really for the long term? (Read 3234 times)

decapolis · « **Reply #15 on:** Aug 12, 2012, 07:57 AM »

Quote from: mxherr5 on Aug 11, 2012, 04:50 PM

ang bpi, wala nanh holding period. i hope hindi ma apektuhan negatively ang fund.

When pa? Meron ka ba BPI UITF? Kasi kakacheck ko lng performance report last month for my UITFs - BPI Balanced Fund and BPI Premium Bond Fund - e 90 days pa rin nakalagay holding period else pay .5% early redemption.

I doubt na aalisin nila yun kc di lang sya income kundi security pra di lahat mag-redeem early.

mxherr5 · « **Reply #16 on:** Aug 12, 2012, 10:55 PM »

Since when? I don't know but I do have BPI Premium Bond Fund and ABF Phil Bond Fund.

I've been wanting to redeem my remaining units but I have one batch that I invested in Jun30. When I checked my account last week I was shocked to see that field which contains the number of units you can redeem to now contain all of my remaining units.

Sure enough when I checked each of the fund's profile page, it shows
none.

Check https://www.bpiassetmanagement.com/pages/abf-philippines-bond-index-fund/ or any of the fund's page.

Also you know the report is delayed right?
I remember when they raised AFLM Growth Fund's fee to 2%.
It was reflected in the fund's page but not in the fund's report yet.

You doubt yet they did lol.
Maybe their studies showed it wouldn't negatively impact the funds

edspecks2004 · « **Reply #17 on:** Aug 13, 2012, 10:10 AM »

Matagal ko na rin gusto tanungin yan. Di ba ang sabi equity fund or stocks may chance rin na mag decline, so kahit na long term investment plan mo, wala pa rin guarantee. Sana may mag explain pa.

decapolis · « **Reply #18 on:** Aug 13, 2012, 10:22 AM »

No issues nman khit UP and DOWN yung MF UITF or Stocks, in time UP pa rin trend nyan. Kahit makaroon p bear cycle or recession. And impt e during bear cycle, if you can, continue to put money on your units and shares.

@Mxherr5, thanks ...

mxherr5 · « **Reply #19 on:** Aug 13, 2012, 11:00 AM »

@ deca, no problem

@ ed, very possible sir.
As per yahoo's historical data on PSEi, on 1999 was at
around 2,500.

Then at the bottom of the crisis in 2009, the index was
at around 1,800.

So its very possible for you to have invested a big amount
in one go then after waiting for 10 years, lugi ka pa.

That's why I still do cost averaging. I don't care about the
studies saying that cost averaging doesn't have any advantages
over lump sum investing.

But then again after just waiting for 3 years, that 1,800 index
shot up to 5,200

decapolis · « **Reply #20 on:** Aug 13, 2012, 11:48 AM »

Many experts here won't agree with peso cost averaging kasi HINDI daw "superior" yung returns, and i agree. Sabi sa study (for decades) if you will invest using cost averaging you will earn 10%-15% average pero for me this is already HUGE. It is far better than 1.5% savings and 3% time deposit.

I'll leave the 20+ and UP returns to the experts

I do not have much time for Technical Analysis

mxherr5 · « **Reply #21 on:** Aug 14, 2012, 12:44 PM »

That wasn't clear sir.
You said you agree that lumpsum is better than cost averaging
but you're ok with the returns from cost averaging?

decapolis · « **Reply #22 on:** Aug 14, 2012, 02:26 PM »

Quote from: mxherr5 on Aug 14, 2012, 12:44 PM

That wasn't clear sir.
You said you agree that lumpsum is better than cost averaging
but you're ok with the returns from cost averaging?

I'm ok with cost averaging in the sense that it beats Time Deposit and Regular Savings but it can not beat lump sum (buying stocks which price is FAR from Fair Value).

I've did a research of what the experts say about Cost Averaging and many of them don't agree with it's investment strategy. They even called it a merely "marketing strategy of mutual funds companies".

Like for example if you decided to do Cost Averaging with a certain company and this stock is already OVERPRICED then you are blindly hurting your wallet. IF IN CASE you will say "oh no i do not buy if the price is high" THEN you do not follow Cost Averaging because in it strict rules you should buy regularly every month without fail and in any current amount.

I can not explain it better than FerrariEverest, he is the one who also convinced me the disadvantages of Cost Averaging. But again, i would still suggest it to anyone who do not have the money to buy in lump sum.

allanmm13 · « **Reply #23 on:** Aug 14, 2012, 07:40 PM »

Quote from: decapolis on Aug 14, 2012, 02:26 PM

I've did a research of what the experts say about Cost Averaging and many of them don't agree with it's investment strategy. They even called it a merely "marketing strategy of mutual funds companies".

If we have big money, its probably better listen to these experts.. The problem is, most of Pinoys, we can only save coming from our monthly salary.

Well, the marketing plan of the mutual fund companies must have work with me since im getting a return "better" that the marketing gimmick of banks to save on their deposit products

darkknight · « **Reply #24 on:** Aug 14, 2012, 10:45 PM »

Quote from: decapolis on Aug 12, 2012, 07:57 AM

When pa? Meron ka ba BPI UITF? Kasi kakacheck ko lng performance report last month for my UITFs - BPI Balanced Fund and BPI Premium Bond Fund - e 90 days pa rin nakalagay holding period else pay .5% early redemption.

I doubt na aalisin nila yun kc di lang sya income kundi security pra di lahat mag-redeem early.

Merong holding period.Nag-inquire ako last August 7,2012 about MF sa BPI kasi nga i plan to invest for my son. 180 days ang holding period and 10k ang minimum investment.Then after that 1k ang minimum for the next transaction.

decapolis · « **Reply #25 on:** Aug 14, 2012, 11:31 PM »

Quote from: allanmm13 on Aug 14, 2012, 07:40 PM

If we have big money, its probably better listen to these experts.. The problem is, most of Pinoys, we can only save coming from our monthly salary.

Quote from: allanmm13 on Aug 14, 2012, 07:40 PM
If we have big money, its probably better listen to these experts.. The problem is, most of Pinoys, we can only save coming from our monthly salary.

Well, the marketing plan of the mutual fund companies must have work with me since im getting a return "better" that the marketing gimmick of banks to save on their deposit products

Well, the marketing plan of the mutual fund companies must have work with me since im getting a return "better" that the marketing gimmick of banks to save on their deposit products

Yeah, as ive said above, and even the study of COL says that the average yearly return of cost averaging is 10-15% so im not against it.

mxherr5 · « **Reply #26 on:** Aug 15, 2012, 12:12 PM »

Quote from: darkknight on Aug 14, 2012, 10:45 PM

Merong holding period.Nag-inquire ako last August 7,2012 about MF sa BPI kasi nga i plan to invest for my son. 180 days ang holding period and 10k ang minimum investment.Then after that 1k ang minimum for the next transaction.

It must not be widely known yet? Lol
Well, the site says none and I can confirm that if there is
a holding period, its shorter than 180 days but I think
the guy you talked to was just wrong and that
there really is no holding period.

@deca, I completely understand what you said and I agree
but not if it comes to mutual funds though.

theEdge · « **Reply #27 on:** Aug 16, 2012, 08:28 PM »

i don't bet lump sum and long term when the stock market is at its highest(peak),yes we cannot predict exactly the direction of the stock market but i only invest big when the probability is on my side and that is to buy when the market is beaten down considerably.just compute what happens if u invest now when our stock market is at 5200+ compared to if you bought when the market was at 1800's.

pmtmember · « **Reply #28 on:** Aug 19, 2012, 08:07 PM »

Quote from: mxherr5 on Aug 11, 2012, 04:50 PM

ang bpi, wala nanh holding period. i hope hindi ma apektuhan negatively ang fund.

baka pa nga marami na ma entice to invest kasi walang holding period.

BatmanBeyond · « **Reply #29 on:** Aug 22, 2012, 10:11 AM »

Yes, some mutual funds and UITFs do not have holding periods or charge if you redeem within a certain period. Always remember that you will enjoy fully the realized gains if you have a long-term investment horizon, i.e., more than 5 years. So before you invest on these vehicles, build enough emergency fund first which is ideally at least 6 times worth your monthly expenses.