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How to Invest in UITF (Unit Investment Trust Funds) - Part 2

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freefront

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       If i were you,i would cost average it,meaning if i have 100k to invest in MF or UITF, i will place 20k monthly for 5 months or 25k monthly for 4 months.Inde ok mag lump sum ngayon.

Another POV:(Warning---Ameriki, his DCA is our PCA)

The Truth About Money

Excerpts(by Ric Edelman)

When Is the Best Time to Invest?
Four Ways to Create Savings
Who Says Saving Money Is Hard?
How to Get Out of Debt
When Is the Best Time to Invest?

Given $100,000 to invest, should you slowly invest that money over a period of time or simply invest all at once as one lump sum?

To understand the answer, realize that dollar cost averaging (Chapter 46) is intended for the accumulation of assets, not the distribution of assets already accumulated. Studies have shown that the investor who invests all at once makes more money than investors who DCA their way into the market.

This should be no surprise to you; after all, the entire benefit of averaging means that by default, you are guaranteed not to receive the lowest cost available, which in turn means you will not receive the highest returns, either. Since stock prices historically have an upward bias, the sooner you invest, the more money you will make, and dollar cost averaging delays that effort.

People who try to DCA large sums into the market soon learn why their strategy doesn't work: By investing $100,000 over a one-year period, they invest just $8,333 in the first month. That means they didn't invest $91,667. What will they do with that block of cash in the meantime?

It sits in cash, earning 1% interest -- hence the problem. Although you lower your risk by dollar cost averaging, you also lower your return. Therefore, the best time to invest is when you have the money! (After all, if you don't have any money, it's a pretty lousy time to invest, eh?)

This also means you should invest as soon as you do have the money. People sometimes tell me they're saving $25 per month in a bank account. "As soon as it grows to $5,000, I'll buy a mutual fund," they say. If your money is sitting in a bank at only 1% per year, do you realize how long it will take $25/month to grow to $5,000? Don't wait: Invest your money effectively now.

Though all this sounds fine, you're probably unconvinced, because you know that with your luck, the stock market will crash the day after you invest your life savings.

So please don't misunderstand me. I said to invest all your money at once, not invest all your money into stocks at once. The proper way to invest a lump sum is to invest it all at once -- but into a highly diversified portfolio.


« Last Edit: Jan 09, 2012, 04:47 AM by freefront »


rangel

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@VeneurlArgent

Yep...if you will click the 3rd Hyperlink..it will direct you to UITF Calculator..there you could get what you were lookin for. %Gain/Loss since time of investment.
« Last Edit: Jan 09, 2012, 07:07 AM by rangel »


igig

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Newbie here, Di po ba Sell High,Buy low? Question ko po, Regarding investing, kailangan ko po bang hintayin mag nosedive o bumaba ang navpu bago po mag-start mag-invest? Regarding Timing po, applicable din po ba ito sa fixed income fund, bond fund.TIA


freelancer_babe

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^ maganda nga naman kung sell high, buy low - but that is kung short term lang ang tingin mo sa UITF at gusto mo lang kumita ng quick cash at may time kang magmonitor ng investments mo.

Pero I'd rather do peso-cost averaging - investing at regular intervals instead of timing the market whether it's at its high or low. Long term kasi ang plans ko at wala akong time magmonitor ng mga investments ko.


palailai

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Sa akin naman pag umabot na sa 20% target ROI, redeem agad, at yung income ini-invest ko sa Mutual Fund or UITF Fixed Income while yung principal amount naka invest ulit sa Equity Funds..


freefront

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Newbie here, Di po ba Sell High,Buy low? Question ko po, Regarding investing, kailangan ko po bang hintayin mag nosedive o bumaba ang navpu bago po mag-start mag-invest? Regarding Timing po, applicable din po ba ito sa fixed income fund, bond fund.TIA

Maybe you should take a look at the movement of their bond fund? I meant, if you want to buy low sell high. Go to the bank, accomplish all the necessary papers( this is from a person who gets irate at doing the same kind of paperwork. Sometimes, they send you out to photocopy your own IDs, maybe they need another kind than the ones you brought, etc.), and park your money in the product with the lowest risk. Then get back in when you try to time the market, and more than half of the paperwork has already been done--- like the investor profile questionaire :bored:


mxherr5

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Sa akin naman pag umabot na sa 20% target ROI, redeem agad, at yung income ini-invest ko sa Mutual Fund or UITF Fixed Income while yung principal amount naka invest ulit sa Equity Funds..

Do you actually just redeem the 20% gain or the whole amount and then you invest the 20% gain on fixed income funds and then reinvest the principal on equity funds?


DonT

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^I do the same...though I reinvest eveything in equities...when its not good in equities...i'm on money market.


palailai

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Do you actually just redeem the 20% gain or the whole amount and then you invest the 20% gain on fixed income funds and then reinvest the principal on equity funds?

Sir, I redeem all my equity funds, except BDO Equity under EIP...


vgal0579

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3 weeks ago, i have mo idea of investing besides from traditional banking.  I've been looking on how to diversify my portfolio and am glad that I've found this forum. I've learned a LOT! :-)  thanks to all the gurus here. Now i have 2 regular uitf, bdo balanced fund and bpi high conviction equity fund plus am enrolled in 2 bdo eip, balanced fund and equity fund. So far am happy with my investment. Now to diversify more, am waiting for the approval of my bpi trade amd col application to invest in stock market. While waiting ive been reading posts under stock and trading of PMT. This forum helped me a lot to open my mind amd make right decision (hopefully)... :-)


disturbed

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^ ok lang yan sir..we all start somewhere..and I started the same too 7-8 mos ago

goodluck on your investment journey


vgal0579

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jenxent

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hi guys,newbie lang me :hello: dito but i already started investing 10mos ago...my investment ako sa MF at UITF....recently just watch pesos and sense sa youtube at marami akong makuhang pointer dun im inviting you to watch it... :D
hope marami pa akong matutunan dito...


oelski

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Hi, newbie lang din po. I just recently opened a BDO Fixed Income UITF, FAMI Balanced Fund and Philequity Fund. For long term po yung FAMI and Philquity... Yung BDO short to mid term po.

Goodluck po satin lahat. : )


lowprofile888

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Hi, I am a newbie too. I would like to seek advice regarding which UITF to invest in. I'm looking for a long term investment, I will set aside a certain portion of my salary monthly for it. I have a savings account in BPI and BDO,  thank you :)


 


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