Choosing Right Investments

Choosing where to invest is one of critical decisions we want to be really careful.  Lots of people with only interests is to accumulate members in order to pave their own way for hefty commissions.  Others, even your close friends advise you to put your money in a business model which it entice at least 40% return within a week.  No such legitimate investment company able to give that such big profit.

Others ventured their hard earned money in traditional business (like what I did several years ago) like buying a franchise or licenses.  Do you know that only 2% among business start-ups succeeded? What happened to those 98%? They were failed within 6 months in operation.  And I was one of those 98% who tried.

Just Think It Again

Losing in a business venture gave me a life time education that unable to earned from any colleges or universities.  It gave me a great perspective in handling business operations, handling people, marketing, selling, and dealing with the government (including those crooks and bullies).  Losing my money in business venture made me a better entrepreneur and investor.  I thanked I didn’t quit my day job then.

Considering Money Business

Dealing with numbers is not really a headache, as long as it's your own money. Photo from pixabay.com
Dealing with numbers is not really a headache, as long as it’s your own money.
Photo from pixabay.com

Most people who invest in UITF, Bonds, Stocks, Mutual Funds, and Time Deposits think they are just investing.  On my own experiences, they are really doing businesses too.  The money you placed is actually your capital, profits and losses generated, and dividends you received are one of criteria of having a business.

Paper Investments

Investment instruments now-a-days are now easy as 123 to understand.  The invention of UITF and Mutual Funds bring us the comfort of investing our money.  Here is the brief discussion about the differences among these investments:

Local commercial banks offer UITF products such BPI Asset Management
Local commercial banks offer UITF products such BPI Asset Management
  1. UITF (Unified Investment Trust Funds) is an accumulated funds came from different investors managed by fund managers.  Funds accumulated or pooled (UITF is a pooled funds) invested in private equities, bonds, and government securities.  Commercial banks are only licensed by BSP (Central Bank) to sell UITF products.  Units in UITF are based in NAVPU (Net Asset Value per Unit).For more article about UITF investment read Investing in UITF Today.
  2. Mutual Funds – is also an accumulated pool funds like UITF,  but UITF offer by large commercial banks and monitored by BSP (Banko Sentral ng Pilipinas).  While mutual funds are manage by SEC (Securities and Exchange Commission).  Both are pooled funds and sell units based in NAVs (Net Asset Value).  Just remember, the only difference of UITF and Mutual Funds is UITF manage by a commercial bank while Mutual Funds by other investment companies.
    COL Fund Source is like a marketplace of Mutual Funds.
    COL Fund Source is like a marketplace of Mutual Funds.

    For more article about UITF investment read Investing in Mutual Funds Today.

  3. Direct Stock Market Investment – if UITF and MF are giving your comfort in investing because of fund managers, I’ll discuss few disadvantages in investing in any pooled funds is the flexibility in investment opportunities.  First, your investments are decided solely by fund managers.  Second, declared dividends are not guaranteed it will distribute in pooled investments.  Third, you cannot buy preferred stocks which having a veto power in stock holder’s meeting.  All of these are given in direct stock market investments.
    Online brokerage firm such COL Financial makes stock investment easy as 123.
    Online brokerage firm such COL Financial makes stock investment easy as 123.

    Open an account to any authorized broker.  Click this link to see the list of authorized brokers in the Philippines from PSE (Philippine Stock Exchange).  I promote online brokerage firm and suggest COL Financial.  Today’s fast and flexible world, we usually rely on technologies in day-to-day dealing and errands.  Doing trading and investing can now be done thru online.

Thinking your Retirement

It is one of many reason why some rich people got richer and the poor stays poorer.  It is because rich people know how to invest, in a proper way.  It is always related in financial mindset of people, rich or poor.

Again before I close this article, I may share this quote to help everyone think about their retirement.

“The ability to discipline yourself is to delay gratification in the short term in order to enjoy greater rewards in the long term, is the indispensable prerequisite to success.”

-Brian Tracy, motivational speaker

source:

Investopedia.com

COL Financial

and personal experiences

 

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Eleison Cruz

Financial Consultant. Personal Finance and Investment advocate. Author of The Good Asset, a blog that educates people in investments, financial literacy, and life insurance. Visit www.thegoodasset.ph

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