The lower the NAV, the more units we can buy
Technically true but then again, so what?
You can have double the shares but if the NAV doesn't go up then
its pointless.
So, in your book Philequity's Index Fund which is currently at a NAV of 4
is better due to its lower NAV?
First off, you should understand that the NAV is directly dependent on
the fund's underlying securities(investment) so the CURRENT NAV should not
matter.
But I guess that's human nature for you.. we tend to think that a lower price
is better regardless of the circumstances.
Take stocks for example,
Some companies with a stock that has a low price, i.e. penny stocks
would tend to do reverse splits. Basically, they reduce the number of
shares which would then raise the price of the stock.
People would now think its not a "basura" stock since it would now
have a respectable price. nothing's changed though, the company still
has the same underlying assets, business, etc.
I hope you get what I mean.
@ampere, ALFM is like their brand sis.
Their funds are all called ALFM except for PSIF.
Which one were you interested in?
I'm betting its the Peso Bond Fund though because
if I'm not mistaken, all of the other funds are closed now.
Its good enough, but BDO is better
Just a side comment on the BDO thing. I find it weird that they told
you that. I mean you should have opened a separate 10k UITF then
opened an EIP account. I don't see a problem with that arrangement.
Wala namang sinabi sa rules na bawal yang ganyan.
