Tuesday, April 23, 2013

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.