Skip to main content

readers' email - part 1

1. The first email is from Lance, he is weighing where to invest among three funds namely:

PhilEquity Philippine Index Fund, ALFM Philippine Stock Index Fund and BPI ABF Bond Index Fund. One important factor in choosing a fund would be its annual management fee, lower is better. Secondly, which asset class are you investing in? two of the above invest in stocks and the other one invests in bonds. Currently I am not investing in Philippine stocks because it has performed exceptionally well over the past 2 years and starting to cause imbalance in my portfolio. I strive for an equal asset allocation to stocks, bonds, cash, real estate and precious metals for optimum diversification. How easy is it for you to make subsequent investments in those funds and how easy is it to monitor them? You mentioned living outside the Philippines so this is an important factor too. There really is no such thing as "the best fund" but there is a right fund for the right investor at the right time. Also, investing is not a race. Read the prospectus of the funds you are considering 2-3 times and consider each one's strong and weak points. If you really can't decide, keep your cash and continue to research on the myriad of investments available to us until you find the one that suits you. Let me know when you have made the decision.

2. The second email is from Donna and she is intrigued that I plan to retire in the Philippines. Retirement is many years away but yes, I do plan to spend majority of the time in the motherland. I hope my investments will be able to provide a descent retirement income in the future. If so, that would free up time that was previously used to earn a living. I do not intend to spend such free time sitting around. Perhaps I can volunteer or run a foundation or teach finance in public schools or mentor microentrepreneurs.  The Philippines would be the best place to do these things because it is where the returns are greatest. 

To Lance and Donna, thank you for the mail and happy investing! 


  1. Thanks Gab! :) I'll keep you posted.

  2. I personally prefer the ALFM index fund: much, much lower fees than PhilEquity, plus it tracks the index very well.

    You can also redeem and subscribe to additional units online. Perfect if you're an OFW. PhilEquity might have the same feature, though I'm not sure.


Post a Comment

Popular posts from this blog

do not invest in Philippine pre-selling condos

I would rather shoot myself in the head than invest in pre-selling condos in the Philippines. My brother and I were interested on getting a condo unit not really as an investment but as a vacation home. However, when I read a contract to sell from one of the Philippines' top developers, I was shocked at how skewed it is on the developer's favor. There is very little protection, if any, on the buyer's side. I think you would have to be either really stupid or overly trusting to sign one of those contracts. The first issue I had was that they require the full post dated checks even before providing the contract to sell. What the hell? They should give the CTS when the buyer has paid 10% downpayment. Next, if they failed to deliver the unit as scheduled, there is no compensation to the buyer. They can practically construct the condo as slow as they can. Then they are also free to alter the floorplan as they please. So if you expect 10 units per floor, you might be surprised t…

a financial mistake most business owners make

What could offer the biggest potential returns of your investment? A profitable business. It can turn P1000 into millions but it can also turn into 000. Putting some money into a business is a must for any investor. Aside from the possibility of raking in profits, having a business actually helps you understand investments better. To quote Warren Buffett, "I am a better investor because I am a businessman and a better businessman because I am an investor". When it comes to learning about finance, running a business is the best teacher. We also need to apply investing principles in our business and what I would like to emphasize is the concept of diversification. A financial mistake most business owners make is the lack of diversification. This is especially true to small business owners. Let us illustrate with the typical lechon manok business. A young entrepreneur decides to start a lechon manok stall. He has great tasting chicken, has good location and people buy it. Needl…

from little things, big things grow

Most of us know this is true with investing but it takes discipline and a lot of patience to see this through. From little things, big things grow.  As investors, we need to realize that small amounts do matter and nothing should go to waste. We see pocket change, but the real value of those coins is many times over if it were invested and given time to grow.Yes, a few coins would not buy you much now but if invested well, it can grow to such that it can actually buy more in the future than what it can today. So if you see a coin, pick it up. It may only buy a piece of candy now but if invested well, it could pay for a decent meal 30 years later. Happy investing!