10 tips to reduce Christmas spending

November 6, 2008

 

I learned a few more things while preparing for my interview at ANC’s Shoptalk, as well during the show and would like to share them with you:

1. Use a budget. Makes you consciously think of what you put in your shopping carts. Write a shopping list.
2. If you must shop, go for frugal shopping hot spots. The psychological rewards of saying yes is the same whether you do it at Zara’s or Divisoria. (Read my previous post to to find a list of frugal shopping hotspots.)
3. Set aside a Christmas fund. In government finance, a sinking fund allows the government to set aside every month some money for future payments. We can do the same in our personal finances. A 12,000 budget for gifts and noche Buena every year for example will not be as heavy when you prepare for it by seting aside 1,000 a month from January to December.
4. Don’t forget the “hidden costs” of Christmas holidays, like contributions for company/church Christmas parties, Kris Kringles for children, etc.
5. The law of supply and demand in economics indicate that if you buy in January, you will get lower prices because demand is bound to drop. Not so, says Pia Hontiveros-Pagkalinawan, who is a self-confessed Divisoria shopper. She says apparently shop-owners have realized that children who get cash gifts during Christmas time go shopping in January!
6. Be a bulk customer: contact your company’s suppliers
7. Recycle gifts
8. Keep Christmas parties simple, go potluck!
9. Think of giving the gift of experience instead of toys
10. Don’t go overboard when buying toys. Some of the most expensive toys these days kill children’s imagination

 

original post from Money Smart: http://blogs.inquirer.net/moneysmarts/2008/11/05/10-tips-to-reduce-christmas-spending/

 

Starting —The first step toward success

November 4, 2008

Salespersons are coached in the power of a first impression. Orators devote hours to opening statements. Journalists are admonished never to bury the lead. Sprinters practice racing out of the starting blocks. Interviewees are taught the importance of their initial handshake with a potential employer.

In leadership, as in many other areas of life, the beginning often determines the end. False starts and weak foundations can be ruinous. Here are five insights to help you start successfully.

How to start successfully

1. Start with yourself.

As Gandhi famously said, “Be the change you want to be in the world.” By starting with yourself, you build the self-confidence needed to attract and inspire others. Leading yourself well is a precursor to accomplishment, and accomplishment earns respect. In order to make deposits in the lives of followers, you have to have a beginning balance in your leadership account. Start leading by proving your mettle-to yourself and to prospective followers.

2. Start early.

Sadly, many leaders squander their early years and spend the rest of their careers trying to make up for lost time. In leadership, as with finances, decisions made early in life accrue the most interest. When we choose poorly or establish bad habits, we put ourselves in debt.

Then, we must not only repay our loans, but the interest on them as well. On the flip side, when we invest our time and talent wisely from a young age, we reap the benefits of compounding interest on our leadership.

Specifically, where should leaders start? What areas should take precedence at the beginning? From my experience there are 10 things you should do as a leader prior to reaching age 40:

1. Know yourself.2. Settle your family life.
3. Determine your priorities.
4. Develop your philosophy of life.
5. Get physically fit.
6. Learn your trade.
7. Pay the price.
8. Develop solid relationships.
9. Prepare for the future.
10. Find purpose for your life. 

 

If you’re over 40, it’s never too late to make improvements. Unfortunately, an old dog doesn’t easily learn new tricks. Undoing years of misplaced priorities and poor self-management will take extra effort.

3. Start small.

Don’t expect to understand what it takes to get to the top, just take the next step.

Think big, but start small. Doing so encourages you to get started, and keeps you from being frozen by the magnitude of the vision in front of you. When you accomplish a small step, you gain confidence that you can accomplish the next step.

The success found in starting small comes when you diligently apply the lessons you learn. As my friend, Dick Biggs, has said, “The greatest gap is between knowing and doing.” Commit to mastering the details under your control, and follow through when experience has given you instruction.

4. Start with the end in view.

“Most people spend more time planning their grocery shopping than designing their future.”-Tom James, “Personal Development Coach”

To start with the end in view, you need energy and direction. Let your passion pull you forward, and let your planning give you guidance. In order for passion to be a driving force in your life, you must identify a purpose for you life. To locate your purpose, consider your strengths, interests and past successes. What roles do you find most enjoyable? What brings you the greatest sense of satisfaction? Examine the areas that make you feel strong and angle your career toward them. Also, find people who have been successful in the area of your interest. Listen to them and watch their lives.

For planning to give you direction, you need to write down goals. Goals lend structure to your purpose, and they keep you leading “within the lines.” They focus your action and move you toward your overall vision.

5. Start now.

We exaggerate yesterday, overestimate tomorrow and underestimate today. Embrace action daily. Don’t wait until it’s too late before you begin to pursue the visions implanted in your heart. Make each day your masterpiece; you’ll be surprised where you end up after stringing together a few months of superb days.

I’ll leave you with one final thought:

“How wonderful it is that we need not wait a single minute before starting to improve ourselves and our world.”-Anne Frank

Review: Five steps to starting successfully

1. Start with yourself.

2. Start early.

3. Start small.

4. Start with the end in view.

5. Start now.

 

taken from:  http://business.inquirer.net/money/columns/view/20081004-164627/StartingThe-first-step-toward-success 

The first million is the hardest

October 18, 2008

While looking at Moolanomy’s blog the other day, I stumbled on an intriguing post that illustrates why it’s hard to break that Php 1-million net worth mark.

It’s not just the persistence and focus needed to make your first million. Moolanomy correctly points out that it’s also mathematically challenging .

“If a person invests Php 15,000 per year starting at age 25 and the investment gains on average 10% a year, he can get to Php 1 million mark by 45. The first million took 20 years! But if you keep going down the table, it only takes…

6 more years to get to Php 2 million at 51

4 more years to get to Php 3 million at 55

3 more years to get to Php 4 million at 58

2 more years to get to Php 5 million at 60

2 more years to get to Php 6 million at 62

2 more years to get to Php 7 million at 64

1 more years to get to Php 8 million at 65

This confirms what one of the readers of this blog said in a comment on my post on The Science and Art of Making Your First Million . He said :

“Making your first million is the hardest because you’re starting from scratch. The next million is less hard. The succeeding millions are easier because you have a bigger base. Money begets money.

I made my first million at 25 in real estate during the real estate boom in early ’90s. I had to bet all my savings and borrow money to do that. Now I earn the same amount in interest alone.

Business is the fastest way to make money. It is also the fastest way to lose money if you fail. Don’t worry it’s okay to fail but don’t lose it all.”

Inspiring, right? As I was looking through MoneySmarts’ archives, I realize Pinoy Investor is only in his thirties. Unfortunately, he doesn’t want to be interviewed

For average Filipinos, making the first million by 25 may not be as easy though. But what if we make some simple assumptions. Say, regular savings of P2,000 a month starting at age 20 when most of us start working? The table looks like this:

It will take 16 years to make your first million!

But it gets easier after that…

6 more years to make the second million 4 more years to make the third million
3 more years to make the fourth
2 more years to make the fifth
2 more years to make the sixth
1 more year to make the seventh

…then you’ll be making one million a year after the eighth.

Consider that this illustration is only for a P2,000 savings per month on a 10% return per annum . Come on guys, we all can do better than that!

 

From: Money Smart Blog in Inquirer.net The first million is the hardest 

 

Equity Fund vs Money Market

October 12, 2008

Here are the chart of Equity Fund and Money Market Fund of Sun Life Prosperity Fund:

 SUN LIFE PROSPERITY MONEY MARKET:

 

 

SUN LIFE PROSPERITY EQUITY FUNDS:

 

 

Comments? 

iNvE$tMeNt Q&A

October 5, 2008

i think the term is until 5 years not at least 5 years.

you can get it cguro 1year or less and then they will compute the equivalent interest rate.  and not tax ito.

 

 

—– Original Message —-

Subject: Re: [aiurp] The PERA Bill at its core

 

wow! dami mo info earth! thanks!

pass muna ako dun siguro sa pag-ibig na bonds. at least 5 years pala ang terms eh. wala pa ko enough money na sa tingin ko oki lang na ma-freeze for 5 years eh. check ko ung sa bpi. thanks!

On Sun, Oct 5, 2008 at 12:50 AM, nibirU <earathou@yahoo. com> wrote:

 

 

ah baka nag transform na ang sun life investments type nila.

if may part kang stocks sa insurance mo then ask mo ilan ang shares mo dat time and how much na worth ngayon.

for sure tataas na ang worth ng shares mo.

 

di ko nakikita sa unionbank website ang 4.5% na interest sa Time Deposit nila. baka more than 5M ang minimum dito kaya malaki ang interest.

 

ito ang complete listing ng Time Deposit rates ng BPI, BPI Direct and BPI Family Savings Bank

http://info.bpiexpressonline.com/bpiprod/produpd.nsf/Deposit+Rates/TimeDepositRates 2?OpenDocument

hanap ka nalang ng investments na madali ang liquidity nya. 

meaning the ability to turn assets or investments into cash. magagamit mo ito for emergency cases.

 

meron din Pag-ibig Housing Bonds. in which you have an interest of 5.0% per annum.

kaso madaling maubos ang mga bonds or certificates dito once magrelease na sila. as early as this month magrelease sila for next year new certificates.

 

---

http://www.pagibigfund.gov.ph/sp_bonds. htm

 

Pag-IBIG Housing Bonds

WHAT ARE Pag-IBIG HOUSING BONDS

 

Pag-IBIG Housing Bonds (Series 2007)* are bonds issued by the Home Development Mutual Fund (HDMF) to finance its housing loan program. The Bonds have a term of five (5) years and one(1) day.

*Issuance of the Pag-IBIG Housing Bond is contingent upon the prior endorsement of the Department of Finance and the approval by the Monetary Board of the Bangko Sentral ng Pilipinas and the finalization of the HCG Contract of Guaranty.

WHAT ARE THE OTHER FEATURES OF THE BOND?

• Allowable investment of insurance companies
• Acceptable collateral for a developer’s loan with Pag-IBIG Fund
• Acceptable deposit in lieu of surety bond for collecting agents of Pag-IBIG Fund and
• For developer-investors , the Bonds are deemed sufficient compliance with Section 18 of R.A. 7279, subject to pertinent guidelines.

Eligible bondholders shall also be entitled to participate in an annual raffle draw with minimum of two (2) units of House and Lot packages/ Lot worth P1 Million each. For every P10,000 Bond held, an eligible bondholder is entitled to one raffle number.

 

Bond holder eligible to the annual raffle draws are:

• Individuals
• Retirement Fund
• Provident Fund
• Cooperatives

WHO CAN INVEST IN THE BONDS?

 

Members and non-members of Pag-IBIG, Filipinos and foreign nationals, corporations, developers and insurance companies may invest in the Pag-IBIG Housing Bonds. All Bond investors will be required to open and maintain a deposit account with either the Development Bank of the Philippines (DBP) or Land Bank of the Philippines (LPB).

Denomination of P10,000, P100,000, P500,000, P1,000,000 and P10,000,000 are available to all investors. There is no limit as to the amount of Bonds an investor can purchase.

WHAT IS THE INTEREST RATE OF THE BONDS?

An investor will be paid on a semi-annual basis a fixed interest rate which is tax-exempt by virtue of the Home Guaranty Corporation (HGC) guarantee on the Bonds. The interest earnings shall be automatically credited to the savings account of the bondholders on record with DBP or LBP. The actual rate on the bonds will be based on prevailing rate on Interest Rate Setting Date

Sample Computation ( Interest rate of 5.0% per annum)

Amount Invested	:PhP 10,000.00
Coupon Rate	:5.00% net (**)
Semi-Annual Interest Earnings(*** )	:Php 250.00

 

read more 

http://www.pagibigf und.gov.ph/ sp_bonds. htm

 

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: Re: [aiurp] The PERA Bill at its core

 

ay iba ba un? meh bat me nakalagay sa contract ko ne meron akong number of stocks or something ako? parang me part ng binabayad ko na napupunta sa policy ko tapos me part na balanced fund yata un … anyway, papaklaro ko na lang ulit sa agent ko.

me alam ka mataas na TD rates? ang nakita ko lang so far na medyo mataas is union bank na me 4.5% for 1 yr. ung BPI Direct ba how much interest? di na ko interested sa me insurance kasi me mga insurance plans na ko eh. ibang nature naman ng investment gusto ko.

On Sat, Oct 4, 2008 at 4:36 PM, nibirU <earathou@yahoo. com> wrote:

 

girl, iba ang sinasabi mong inenvest mo sa sunlife na may insurance. iba din itong Money Market Fund. walang insurance kasama. but not PDIC Insured. 

 

Mutual Funds / Intindihan Funds 

ay may tatlong risk type funds dito.

- low risk - Bond Fund

- medium risk - Balance Fund

- high risk - Equity Fund.

 

to get sample computations on the interest earna on this different mutual funds read more http://earathou. i.ph/investing10 1 

 

if gusto mo no risk talaga ay meron din sa Time Deposit. 

you can also open new account sa BPI Direct Save-UP account with insurance na din ito.

 

 

 

 

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: Re: [aiurp] The PERA Bill at its core

 

yup meron na ko nyan, sa sunlife din. medyo di ko lang din siya gets … pero oks na rin. me kasama din siyang insurance. 

me alam ka pang ibang low risk investments earth? thanks!

On Sat, Oct 4, 2008 at 1:25 PM, nibirU <earathou@yahoo. com>wrote:

 

mag money market fund ka if want no risk investments.

the same as savings in the bank pero mas malaki ang kikitain mo dito compare to ordinary bank deposits.

Money Market Fund ay isang uri ng Mutual Fund din ito

 

ang kaibahan lang pag nag invest ka ay di mo masasama sa groceries ang money mo. (^_^)

 

 

http://www.sunlife. com.ph/mutualfun ds/marketfund. asp

 

---

 

 

One of the most conservative mutual funds 
you can buy…

 

Money market funds are designed to provide current income at competitive yields with minimal risk to your principal investment. Compared to other existing mutual funds, money market funds are at the top of the heap when it comes to low risk.

Money market funds are comparatively low risk mainly because of the securities in their portfolio. These types of funds only invest in securities that are hort-term,�meaning those with a term of one year or less. As a general rule, short-term securities are less riskier than longer-tenor securities.

That said, you should know that the Sun Life Prosperity Money Market Fund is, at the time of launch, the only money market fund in the Philippines. Compared to other mutual funds at this time therefore, it is one of the most conservative mutual funds in the country, perfect for somebody who wants to ry out�investing in mutual funds.

 

Parking place for cash

In countries such as the United States and Canada where the mutual fund industry is well-established, individuals as well as institutions frequently invest in money market funds, which are multibillion dollar funds, even hitting the trillion mark. As of December 30, 2004, for example, total US money market fund assets stood at US$ 1.951 Trillion¹.

One of the reasons money market funds are an attractive alternative is that they are very liquid, meaning they can be withdrawn on any business day. It is because of this that money market funds become temporary parking places for cash and ideal facilities for short-term investing.

For example, you may want to park your cash in a money market fund while you wait for the time you are comfortable with investing in stocks, as the money market fund can provide a safe haven during volatile periods. The fund is especially useful for institutional investors who have large amounts of cash that they would like to see earn interest while still not being used. At the same time, individual investors like the freedom of knowing that they would be able to withdraw their money from the money market fund if needed.

 

Absolutely no sales load

 

The Prosperity Money Market Fund is the first absolutely no load fund in the Philippines. There are no fees to pay upon investing. This means that your Php 10,000 initial placement is invested wholly into the fund, thereby maximizing its earning potential. Subsequent investments can also be made for as low as Php 5,000.

In addition, the Prosperity Money Market Fund provides immediately access to your investments after seven (7) calendar days. This means you can withdraw your investments after seven (7) days without incurring any exit fees. Other mutual funds may not have any initial sales loads when you invest, but will require you to have at least a two year holding period otherwise your redemption shall be subjected to exit fee. But with the Prosperity Money Market Fund, you do not have to worry this.

 

Tax-free

 

Unlike bank products that provide tax breaks on your interest earnings only when you stay with them until your money atures� your mutual fund proceeds are not subject to the usual 20% withholding tax.²

This tax-free feature of Philippine mutual funds, combined with the liquidity, zero load, and no holding period attributes of the Prosperity Money Market Fund, make it a good alternative to time deposits. That dilemma of not being able to pull out your money because youl be axed�is no longer a problem with this Fund.

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: Re: [aiurp] The PERA Bill at its core

 

Lehman Sis?! hahaha. lakas talaga ng topak mo earth!

di din ako masyado maaalam sa mga mutual funds chuvaness eh. dati nagisip ako mag-try kaso di talaga ako risk taker eh. siguro in the future or pag oki nga itong PERA scheme na to.

sige pag me nabalitaan ulit ako dito share ko din sa inyo.

On Sat, Oct 4, 2008 at 12:25 PM, nibirU <earathou@yahoo. com>wrote:

 

great topic!

 

i read this on the paper.

and still have questions 

 

“This would include unit investment trust funds, mutual funds, annuity contracts, insurance pension products, pre-need pension plans, stocks, exchange-traded bonds, and others approved by the government.

“

-  in mutual funds - what will be the starting NAVPS? 0.00001 ?

- for stocks - we dont have a historical records on how will this perform in the market. if initial investment will be as low as 1000 php then surely all pinoys  can benefit on this and this stocks will perform well in the market.

 

- the money we will invest to the gov’t will be some used to lend it to the businessman or investors. still hope they will not  reinvest it to the foreign investors like Lehman Sis

 

- since it will be handle by the gov’t - they will not declared bankruptcy. instead they can make more and more money they want.

lol

 

tagal pa ng retirement age 55 but its worthy to wait. saving 5k each year x 20-30 years to go = 150k + benefits / incentives / interests. additional savings or money mo yan on that age. pambili ng gold na pustiso. lol

 

update mo nlng kami yen dito ulet soon.

 

“the higher the risk, the higher the return”

“dont put your eggs in one basket” 

 

 

—– Original Message —-
From: yen <ryannecruz@gmail. com>

Subject: [aiurp] The PERA Bill at its core

 

http://blogs. inquirer. net/moneysmarts/ 2008/09/25/ the-pera- bill-at-its- core/#more- 688

Since the Personal Equity Retirement Account (PERA) Bill wassigned by President Gloria Macapagal-Arroyo last August 22, 2008, those who have been conscious savers and investors were fairly bursting at the seams with excitement.

Ah, the joys of tax-free savings and investments. It’s enough to make hearts skip a beat despite the gloomy global environment.

But wait. This news should be something that excites the nation as a whole. Particularly OFWs and their families. I don’t see that happening. Yet. Let’s see what we can do with that.

For starters, here are the things that you need to know about the PERA Bill.

At its core, it will allow you to create a voluntary retirement nest-egg from accredited savings and investment instruments based on YOUR preference and give you the chance to grow this nest egg faster by not slapping you with taxes on its earnings AND rewarding you with a 5.0 percent annual tax credit for your contributions if you keep your money in the PERA until age 55.

If that’s still too complicated, just think about this: tax incentives, baby. They are the cake and the icing on this thing. Oh and the fact that, if you’re tired of how the Social Security System and the Government Service Insurance System are handling your contributions, here you get to make your own call on where to put your money!

Here are some other details from the law, demystified:

1.    Who can set up a PERA? If you can get a Tax Identification Number, you can set up a PERA. This money is yours and not given to the government, like in your traditional SSS or GSIS funds, for them to manage. You choose where it goes.
2.    How do you begin? To set up your account, you need to get an administrator that will oversee your account. This will be a company approved by either the central bank, the Insurance Commission and the Securities and Exchange Commission. You can have only one administrator, but open up to five PERA.
3.    Where to send your contributions? You also need to choose a custodian, which will receive the funds that you contribute. The custodian will operate independently from the administrator. Administrators and custodians are required to charge only “reasonable” fees that are approved by the government.
4.    How much can you contribute? Maximum of P100,000 for those living in the Philippines, and P200,000 for those living and working overseas, per year. Couples together will have a P200,000 maximum contribution, or P400,000 for those living overseas. The Finance Secretary can adjust this from time to time.
5.    Will your employer be required to add to your nest egg? No. They are encouraged, but not required. But employers who wish to use the PERA to enhance employee benefit packages on top of the SSS and GSIS contributions, are allowed to deduct their contributions from their taxable income. Now even if your employer contributes to your PERA, it does not have any authority where to put your funds. You still get to choose your investment outlets.
6.    Who can help you decide where to put your money? You may or may not get an investment manager to help navigate the waters of investing, but choose carefully one who will act always for your best interests, not his. And one who is, of course, qualified.
7.    What investment or savings vehicles can qualify under PERA? This would include unit investment trust funds, mutual funds, annuity contracts, insurance pension products, pre-need pension plans, stocks, exchange-traded bonds, and others approved by the government.
8.    Why would you want to set up a PERA? You get three sweet deals: a tax credit of 5.0% of your total PERA contribution per year. This means if you max out your contribution to P100,000, you get to deduct P5,000 from your annual taxable income. Aside from that, your money gets to compound faster because all income earned in your PERA is tax exempt. Third, once you retire at age 55 and need your money, it still won’t be taxed. If you die before reaching 55, the money goes to your heirs without going into probate.
9.    What are the disadvantages? Since the PERA encourages long-term savings and investments, make sure you contribute only the money that you can spare. Early termination or withdrawal means you get slapped with a penalty (still has to be determined by the Finance department) and taxes.
10.    What if you have an emergency? You may withdraw money penalty-free only if you need money to pay for hospitalization of more than 30 days and if you are suddenly totally disabled.

Make no mistake about it, the PERA Bill will not make everyone wealthy. Unless we take advantage of it. Unless we actually know what to do with it. Unless we in fact take the time to spend less and invest more. Unless we stop complaining and start doing.

So get ready to start doing! If the Finance department is on schedule, the PERA Bill should be effective by January 1, 2009. Happy New Year indeed.

Mutual Funds 101

October 4, 2008

Mutual Fund is an investment company that pools the savings of many individual investors who share a common financial goal. These investors buy shares of a particular mutual fund that has a defined investment objectives and investment strategies. The price of a mutual fund share is its net asset (total assets less total liabilities) divided by the number of shares outstanding. This figure computed and published daily, is the mutual fund’s Net Asset Value Per Share (NAVPS).

(..whatever Yaya..)

I am thinking to invest again in Mutual Funds in Sun Life Equity Bond. I joined last year and pulled my money out after six months. Coz I needed badly the cash. With the market status today on the financial crisis, i do not notice any big deflation of NAVPS published daily in www.pse.com.ph (Mutual Fund Section).

It is good to joined when the NAVPS is low so that you can have more shares. I will find timing if NAVPS will go down slightly.

Having a diversified portfolio in Mutual Funds is letting your money grow with risk but without sweat. Letting the money work for you!  When I pulled out the funds I earned Php 1k+ on Php 10k worth of shares. Not bad at all.

Current Sun Life Properity Phil. Equity Fund goes high from Sept 25 to Oct 2. I am just waiting for the timing when good to invest again.

Involving in Mutual Funds have risk - low, medium, and high. Respectively it is Bond, Balanced, and Phil Equity Fund. Read more here Sun Life Prosperity Funds Profiles. If you want to park your cash just like savings you can have it in Mutual Funds Money Market.  You can withdraw it anytime just like ordinary savings in the bank and the interest is included.

Here are the sample computations on the interest you earn on this different type of funds:

NAVPS (Sept 25 to Oct 2) - source www.pse.com.ph - Sun Life Prosperity Fund

————————————————————————————— 

Sample Fund        Sept 25  | Sept 26 |  Sept 29 |  Sept 30 |  Sept 25

————————————————————————————— 

Bond Fund               1.9157   1.9108    1.9157      1.9164       1.9149 

Balanced Fund       1.8469    1.8306   1.8399       1.8410       1.8375

Equity Fund              1.6088   1.5881   1.5881       1.5979       1.5957

Money Market Fund  1.0927 1.0763  1.0762        1.0760       1.0759

————————————————————————————- 

The table above shows the different NAVPS on each fund. Some fund goes up low and some goes up high. Lets compute on the shares if we will try to invest: 

Sample investment is Php 10,000.00 on Sept 25.

The formula to get the number of shares you will have each fund are:

      Investment Amount  divided by NAVPS  =  Number of Shares

 

For Bond Fund: 10,000 / 1.9149 = 5,222.20 shares 

For Balanced Fund :  10,000 / 1.8375 = 5,442.18 shares

For. Equity Fund:  10,000 / 1.5957 =  6,266.84 shares

For Money Market Fund: 10,000 / 1.0759 = 9, 294.54 shares

 

To get the current earnings you will have for Oct 2, here is the formula

   Number of Shares x NAVPS  = Investments for Liquidity

 

For Bond Fund:    5,222.20 shares x 1.9157 = Php 10, 004.17 

For Balanced Fund:  5,442.18 shares x 1.8469 =  Php 10, 051.16

For  Equity Fund:  6,266.84 shares x  1.6088 =  Php 10, 082.09

For Money Market Fund:  9, 294.54 shares x 1.0927 =  Php 10,156.143858

 

As you can see the total money you wlll have in each fund earns different interest on the same 5-day NAVPS.  Each fund has different risk. As stated, the low risk fund is Bond Fund, the medium risk is  Balance Fund, the high risk is Equity Fund.   Take note, the NAVPS will not usually go up. it goes low unexpectedly.

If you notice the Money Market Fund is performing well today. It earns more thant 10% on its 5-day investment. You can not get this in any bank.   

We cannot predict how the mutual fund perform next days. 

Their is also a no-risk type of investment - Time Deposit. I recently applied in BPI DIrect and surely earn on 35 days term amounting to 25 pesos! lol. I will use this as a revolving fund / compounding interest / reinvesting the cash return for several decades. (^_^)

In investing your money, put it mind these quotations:

   The higher the risk, the higher the returns.

 And

Don’t put all your eggs in one basket.

is a idiomatic phrase meaning that one should not focus all his or her resources on one hope, possibility or avenue of success.

Have your money or savings diversified not just one portfolio investments.