Mutual Funds - Thread # 3

[mxherr5]

Yes, you can check out www.pifa.com.ph

[Mr.Punch]

^Thanks!

[chinie]

Hi! I hope somebody can help me..Im more interested on Equity fund from the 4 types of mutual funds we have basically because I plan to invest long term. My question is do these Equity funds have fixed corporations where the fund managers invests or buy stocks from? For example, looking at the ATRKE Equity Opportunity Fund Nov.2013 report, their Top 10 holdings include Ayala land, Petron, PLDT, JG Summit which are big corporations. Is it safe to say that we should look at which corporations these Equity funds invest to in choosing the right Investment company?

[Mr.Punch]

^Yes, you can do that if you have a good understanding on how markets work, particularly how things that happen in one industry affects the entire market.

In my case, nahihilo lang ako kung iisa-isahin ko yung mga detalye na iyan.  So I just look at past performance of each fund (Yeah, yeah, I know.  Past performance does not guarantee ...yada, yada...) and how the PSEi actually trends. 

I'd love to do cost averaging, but my money rather comes in irregular spurts, so I'll just try to buy when low (but I won't wait forever for a downturn either.)

[artificialstar]

random question: bakit po anlaki ng NAVPS ng ALFM compared sa ibang mutual funds?

btw, i opened a SALEF account na. if ALFM growth fund can beat its performance, madali lang naman makapag-subscribe kasi may ALFM account na ako.. haha! thanks for your inputs girls/guys!

^^ yes sis, i think it can help but most mutual fund companies invest in blue chips naman. ako, kino-compare ko yung past performance ng fund, tapos take into account yung sales load and returns. at chaka yung convenience ng pag top up kasi nakakatamad pag hassle yung process ng pag-top up hehe

if you're interested guys, eto yung top 10 holdings ng philequity http://www.philequity.net/pefi.php?mode=Description

[ikaela]

^The ALFM growth fund started at 100. Yung iba like PhilEquity and FAMI, have a par value of 1.

[Mr.Punch]

Nung una hindi ko maintindihan when the veterans say "NAVPU/NAVPS doesn't matter" kasi fixated ako doon sa idea na kung makakatipid, mas ok.

But then, when you actually get the hang of it, you'll realize na tama nga sila, NAVPU doesn't really mean squat.  What matters is how the fund performs.

Marami ka ngang units/shares, pero bokya naman yung perfromance ng fund mo, wala rin.  Ang talagang sukatan ay kung gaano lumaki ang pera mo from the initial investment. 

[artificialstar]

^^ thanks sis. but how do they determine kung ano yung starting? parang feel lang nila na magstart sa 1 or 100? parang pointless, pero curious lang ako hehe

[Mr.Punch]

^ I have the same question too.  But I suspect that it's pretty arbitrary.

[ikaela]

Good question. Setting par value is a dated concept, and had more meaning back when markets where more like a free-for-all. But now, with strict regulations, the par value has become somewhat meaningless. Numbers are usually chosen by default, which, based on the funds I monitor, are typically Php1 for MFs, Php100 for UITFs, and Php1 for common stocks. Sa US, it's $.01, hence the term "penny stocks." I'll try to recreate the setting for what I read on determining the par value here:

Let's say me and my friend "Mapera" want to start our own mutual fund, the Billionaire Girls Club Equity Fund. And we want to own a million shares each, because a million sounds awesome! We have the papers prepared by an attorney, who then decides to set the par value -- the price per share -- at Php100, because ginagaya lang niya yung ALFM Growth Fund. Patay na tayo, that means Mapera and I have to fork out 100M each just to own our million shares of our fund. Eh had the attorney set it at Php1, then tig-1M lang ang kailangan naman ilabas ni Mapera.

Mapera and I also assessed the needs to run the Billionaire Girls Club Equity Fund -- the personnel, their salary, the phone/internet lines, the office, the office equipment, and etc. -- and decided that we need 2M for all of it. So dapat talaga the attorney sets the par value at Php1, so me and Mapera invest 1M each in exchange for our million shares.

Php1 is also the price Mapera and I are not willling to sell shares of our fund any lower. Lugi na kung ganun.

So the par value now is really just agreed upon among the members of the issuing company. Again, now (almost) meaningless.

[stameygirl]

^ Yes, for the sake of having a point of reference lang.

[artificialstar]

^^ thank you for the detailed explanation po.

[kwang sun]

mga sis napanood niyo ba yung wolf of wall street? they said penny stocks are useless.. totoo ba yun??

[ikaela]

^I literally just watched it! Movie yun, sis, so syempre may exaggerated parts. Penny stocks aren't useless; more apt adjectives for them are "volatile", "speculative" and even "dangerous".

[kwang sun]

^ i liked the movie! =).. ah ganun ba sis .. palagi ko kasing nababasa sa book ni bob ong na one should invest in penny stocks.. natakot ako bigla dun sa movie hahah..

[ikaela]

^Yung humor writer/comedian? Nag-a-advice din pala siya sa finance? Naku, kung marunong lang ako kumilatis ng penny stocks or what us Pinoys call basura stocks, nag-invest na rin ako. Check out these once-penny stocks that are now worth millions today: http://www.fool.com/investing/small-cap/2009/07/02/the-next-million-dollar-penny-stock.aspx. Sa local naman, SUN, the basura stock of 2013, earned 50% EACH DAY over the course of 3 days. Imagine that! Okay, OT na ata 'to, but just want to say that yeah, I enoyed the movie, too!

[lgf08]

after much research about mutual funds and uitfs, i've decided to start with BPI's Short Term Fund.. i'm a newbie in investing but hopefully tuloy tuloy while i learn more about it.. anybody who tried BPI's Short Term Fund care to provide feedback? TIA

[pink_stardust]

sa FAMI, pwede bang deposit ng initial investment, then fax the documents na lang muna?

o kaiangan talaga mareceive nila yung hard copies ng documents bago maging official yung pag open ng account ko sa kanila?

ang tagal kasi pag ipapadala sa Metrobank. medyo malayo sakin yung PSBank building (although I work in Ayala), and nahihiya naman ako ipadala sa messenger ng company (baka sabihin di naman work related)

[pink_stardust]

hi sis artificialstar yesterday may na re-ceive akong booking confirmation sa email "This is a system-generated email to CONFIRM your SUBSCRIPTION with the SALEF for value date January 02, 2014. " Dec 27 ako nagpunta dun. Pero hinahanap ko yung account number ko hinde ko makita  iba pa ata yung mail for the account number?

i sent my application last friday (02/07) via fax and had the originals sent to their office the same day.

last night, i received the same email from FAMI. sa dulong part nung email, may link papuntabsa online portal (for tracking my investment with them) pero walang log in details. pano ko makukuha yun? do i have to contact them or may separate mail akong marereceive?

[projectgora]

Good morning mga sis! I am planning to get Manulife Affluence Builder which is sort of a mutual fund/UITF plus life insurance. Meron na ba dito nakapag try nito? Yung na offer kasi sakin is worth 500,000 php, payable in 10 years. Monthly is around 4k. May option din to pay annually or quarterly. Okay kaya ito?

Thanks