Investment For Only 1,000 and Below

11:50:00 AM Rhea Mocorro 0 Comments

Image from Kelvin Servigon

As they always say, let your money work for you. And a good way to realize this would be to venture into investing. However, one would often take this in the back seat simply because of the notion that investment is for the rich and the wealthy. Plus, this is something very expensive as many would exclaim. Let me erase that assumption and together let us jump in the investment bandwagon. You need not fear as this post will only entail 1,000 only. Yup you read that right! Invest for only 1,000.

If you have been aiming to invest but don’t have the funds yet, perhaps 1,000 would not be tough to get started. Here are some key suggestions that can help you realize that investment dream of yours.

Unionbank’s Peso Short Term Fixed Income: No Minimum Investment


Peso Money Market Portfolio is a peso-denominated unit investment trust fund designed to provide investors a higher-yielding, liquid outlet for their short-term, transactional funds. Peso Money Market Portfolio is ideal for investors with a short-term investment horizon looking for enhanced yields and the flexibility to immediately access their funds.

Launch Date:
February 8, 2006
Currency of Participation:
Philippine Peso
Minimum Investment:
No Minimum Investment
Return Objective:
Capital preservation with enhanced yields by investing in a diversified portfolio of short-term, highly liquid fixed-income securities, term deposits and other money market instruments
Risk Parameters:
1. Credit Risk - LOW
- Limited to Philippine government and investment grade entities
2. Market Risk - LOW
- Modified Duration Limit: 1
- Value-at-Risk Limit: 1.00% in 1 day within 99% Confidence Level
Modified Duration - is the percentage price change of a fixed income instrument for a given change in the level of interest rates. Duration of 1 means that the price of a fixed income instrument is expected to change by 1% for every 100 basis point (1%) shift in the level of interest rates. The higher the duration of an instrument, the higher its risk (all other factors kept equal).
Value-at-Risk (VaR) – is an estimate of the magnitude of loss that a portfolio can experience within a given period of time under certain probability assumptions, or confidence level. For example, a portfolio VaR of 5% within 1 day under a 99% confidence level means that there is 99% certainty that the maximum possible loss a portfolio can experience in 1 day is 5% of its value. Said in the reverse, portfolio losses greater than 5% of its value in 1 day are possible, but the probability of such occurrence is less than 1%.
VaR is often used as a risk measurement tool in portfolio management. The VaR of a portfolio varies depending on the kinds of assets put into the portfolio and their correlation to each other. Portfolios with lowly-correlated assets (i.e. diversified portfolio) tend to have a lower VaR than portfolios with highly-correlated assets. Examples of assets with a traditionally low correlation to each other are stocks and bonds – i.e. when stock prices increase, bond prices normally decrease and vise versa.
Confidence Level – is a statistical range with a specified probability that a given parameter lies within the range. It is a range constructed from sample data (i.e. past observations). A 99% confidence level gives 99% certainty that values would fall within the specified range.
Liquidity:
To ensure adequate liquidity to meet daily fund withdrawals, at least 50% of investment will be in highly liquid instruments
Initial NAV per unit :
PHP 100.00
Time Horizon:
Designed for investors with a short to medium-term investment horizon
- No Minimum Holding Period
Regulatory:
Subject to Bangko Sentral ng Pilipinas regulations governing the creation, administration and investments of Unit Investment Trust Funds as outlined in BSP Circular 447 Series of 2004 and Section UX410 of the Manual of Regulations for Banks
Tax:
Subject to regular withholding tax of 20% on interest income
Acceptance & Withdrawal Procedure:
Investments are subject to 12NN cut-off for deposit and withdrawal transactions. Funds withdrawn are paid directly into client’s linked CASA account one (1) business day after transaction date.
Valuation Method:
Mark-to-market value of the Fund revalued daily less fees and applicable taxes
Trust Fee:
  • 1% p.a. based on the total market value of the fund.
  • Service fee of PHP100.00 per withdrawal

BDO’s Easy Investment Plan: 1,000 Monthly Contribution


BDO Easy Investment Plan

Saving is, and always will be, the foundation of any fortune. It is secure, risk-free and readily accessible. But saving alone is not enough to make your money grow. You should also invest. This means taking some risks, but the rewards are higher. When you save and invest, your money has the power to grow faster.

With this in mind, BDO Trust and Investments Group developed the BDO Easy Investment Plan (EIP), an investment scheme that enables you to attain your financial goals and financial wellness through the twin habits of regularly saving and investing. It incorporates what investment experts consider to be the best, tried and tested principles that make a successful saving and investment plan and provides a solution to counter the major obstacles to saving and investing.

Client Suitability

The EIP is for individuals who wish to have a medium to long-term saving and investment plan so that they can achieve their financial goals and financial wellness at some future time. The investor profiles of these individuals should show that it is suitable for them to invest in the UITF product they selected as investment/s for their EIP funds.

Product Features
UITFs AVAILABLE VIA EIP
  • BDO Peso Fixed Income Fund (PFIF)
  • BDO Peso Balanced Fund (PBAL)
  • BDO Equity Fund (EQUITY)
INVESTMENT AMOUNT
Starts at Php 1,000.00 per contribution per month.
FREQUENCY AND SCHEDULE OF CONTRIBUTIONS
1x a month / 2x a month
(5th, 10th, 15th, 20th, 25th, 30th)
SETTLEMENT ACCOUNT
Auto debit from any BDO Savings / Checking / Payroll account maintained with any BDO branch.
ISSUANCE OF EVIDENCE OF PARTICIPATION
Every time the market value of your investment reaches at least Php 10,000.00 on a contribution date, your investment will be issued a Confirmation of Participation (COP).
NON-COMPLETION FEE
0.50% of original contribution amount
CUT-OFF FOR ENROLLMENT
At least four (4) banking days before the desired first contribution date
DOCUMENTARY REQUIREMENTS
EIP Application Form plus the UITF documentary requirements

Product Business: Below 1,000 pesos

There are many businesses that you can pursue even with 1,000 pesos. You can have a little buy and sell of food and drinks such as siomai, puto, bibingka, sago, gulaman, taho and more. You may also sign up as a retail member of big cosmetic and retail stores in the market. The membership costs below 1,000 and you can start selling their products while getting discounts. You may also put up a small sari-sari store that you can start at home with a capital of 1,000. Just have a reasonable mark-up percentage and roll over your profit to buy another set of goods or product.

Services Business: Below 1,000 pesos

Do you have a talent or expertise to share? Perhaps you can turn that one into an investment. What is great about this is that you won’t have anything to spend at all. For instance, if you are a good writer, you can opt to establish your writing business online. You can start by having a free blog courtesy of blogger and wordpress. Upload your samples there and an email or a contact form link to individuals who would be interested to acquire your service. This also holds true for artists, designers, virtual assistants and more. I am certain you have a talent or two that you can monetize online.

This only proves that investment need not be expensive. We just only need that little amount of money, 1,000 in this case and a little push to pursue it. Who would have thought that 1,000 can do so much? Happy investing! 







P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 39 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

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