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
Taken from the site: http://www.unionbankph.com/index.php?option=com_content&view=article&id=979&Itemid=73
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:
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February 8, 2006
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Currency of Participation:
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Philippine Peso
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Minimum Investment:
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No Minimum Investment
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Return Objective:
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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
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Risk Parameters:
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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.
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Liquidity:
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To ensure adequate liquidity to meet daily fund
withdrawals, at least 50% of investment will be in highly liquid instruments
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Initial NAV per unit :
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PHP 100.00
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Time Horizon:
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Designed for investors with a short to medium-term
investment horizon
- No Minimum Holding Period
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Regulatory:
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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
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Tax:
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Subject to regular withholding tax of 20% on interest
income
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Acceptance & Withdrawal Procedure:
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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.
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Valuation Method:
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Mark-to-market value of the Fund revalued daily less fees
and applicable taxes
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Trust Fee:
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BDO’s Easy Investment Plan: 1,000 Monthly Contribution
Taken from the site: https://www.bdo.com.ph/personal/trust-and-investments/easy-investment-plan
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
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INVESTMENT AMOUNT
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Starts at Php 1,000.00 per contribution per month.
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FREQUENCY AND SCHEDULE OF CONTRIBUTIONS
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1x a month / 2x a month
(5th, 10th, 15th, 20th, 25th, 30th) |
SETTLEMENT ACCOUNT
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Auto debit from any BDO Savings / Checking / Payroll
account maintained with any BDO branch.
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ISSUANCE OF EVIDENCE OF PARTICIPATION
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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).
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NON-COMPLETION FEE
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0.50% of original contribution amount
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CUT-OFF FOR ENROLLMENT
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At least four (4) banking days before the desired first
contribution date
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DOCUMENTARY REQUIREMENTS
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EIP Application Form plus the UITF documentary
requirements
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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.