How to invest on mutual funds???

[Metz]

---

question, asay maayu ani nga style sa pag invest sa MF like for example for 1 year:

a. initial 5k sa first month then 1k every month for 1 year=16k for 1 year; or
b. initial 16k pag start sa first month then wa na dayun dugang for the rest of the year; or
c. invest 16k at the end of the year.

tnx.

I prefer B then A if you have a huge amount na. Ang C mura raman na ug b.

as long as long term ang investment goal nimo B or A will work.
or if the market is down or ga wait pa mo go up, go for B to maximize gains, but if steady na ang saka then A or B will do.

[makie]

question, asay maayu ani nga style sa pag invest sa MF like for example for 1 year:

a. initial 5k sa first month then 1k every month for 1 year=16k for 1 year; or
b. initial 16k pag start sa first month then wa na dayun dugang for the rest of the year; or
c. invest 16k at the end of the year.

tnx.

Magdepende na sa performance sa market ug sa mutual fund company. The most ideal thing to do is pour in all P16t kung ubos ang NAVPS then padung na saka irregardless of the time. And I will take option C out. Option C is a year late na. Not unless kung di nindot ang performance sa company (i.e. losing iyang YTD). But if you're after sa growth lang and not really mind maximizing your gains, option B ang pinakanindot. The thing about option A kay ang P5t lang ang makagain sa YTD while additional kay dili na. Mas hinay compared sa option B but of course not unless kung negative pud ang performance sa company.

Here's an illustration:

Option A: 5T initial then 1T every month. Assuming that every month nisaka ug 5% ang performance sa mutual fund company.

P5T X 60% (5% X 12 months) = P3T
P1T X 55% (5% X 11 months) = P550
P1T X 50% (5% X 10 months) = P500

Continue lang all the way down to the 12th month, your gain will only be P6,300

Option B: P16T start of the year and assuming that every month nisaka ug 5% ang performance.

P16T X 60% = P9600

Nigain ka ug P9600 for the year.

In option A, P22,300 na imong kwarta while in option B P25,600 na imong kwarta at the end of the year.

Sa illustration, you'll notice that the earlier you invest, mas dako imong gains. However, be aware nga possible sad ingon ana ang dagan sa imong losses kung bati ang performance sa company. Illustration ra na ha. ang performance sa mutual funds in reality kay dili fixed. Magvary ug magfluctuate ang NAVPS depending sa market ug sa performance sa mutual fund company.

[SioDenz]

tnx kaayu mga bro.

mag depende ra ghapon sa performance sa market ig sa MF company diay.

[wizard_jamex]

tnx kaayu mga bro.

mag depende ra ghapon sa performance sa market ig sa MF company diay.

Yes bro, magdepende ra na sa market as what makie and Metz said about it.

[rescyth]

question, asay maayu ani nga style sa pag invest sa MF like for example for 1 year:

a. initial 5k sa first month then 1k every month for 1 year=16k for 1 year; or
b. initial 16k pag start sa first month then wa na dayun dugang for the rest of the year; or
c. invest 16k at the end of the year.

tnx.

Best option is A. Don't be greedy and think only of $$$, your objective is capital preservation. If you invest 16k the first month then ni drop og 50 points ang market, you need to put more money(than originally budgeted) to save your bleeding positions. Average it on different levels para ma protect ka against market swings. imagine the oppostie sa example above... instead of +, imagine a -5% return sd taga buwan... Remember lang this kng unsa kasakit ang losses...

A 5% profit is a 5% profit
But a 50% lost of your capital requires you to earn 100% just to break even.

something to ponder and in no way to disrespect anyone.

[jeshcel]

Best option is A. Don't be greedy and think only of $$$, your objective is capital preservation. If you invest 16k the first month then ni drop og 50 points ang market, you need to put more money(than originally budgeted) to save your bleeding positions. Average it on different levels para ma protect ka against market swings. imagine the oppostie sa example above... instead of +, imagine a -5% return sd taga buwan... Remember lang this kng unsa kasakit ang losses...

A 5% profit is a 5% profit
But a 50% lost of your capital requires you to earn 100% just to break even.

something to ponder and in no way to disrespect anyone.

i agree with this. nindot gyud ni nga idea kay capital preservation. pro katong gusto ug higher returns and higher risk... go for B. it would be up to the investor.

[rescyth]

i agree with this. nindot gyud ni nga idea kay capital preservation. pro katong gusto ug higher returns and higher risk... go for B. it would be up to the investor.

B would be daytrading(swing,scalp etc) and the worst kind of trader kay 100% of capital in one shot -_-! unless kng naa kay crystal ball na 100% ang win rate then why not

[Metz]

wala man kaayo difference ang B or A sa Mutual funds as long as both long term ang goals.
Kay even if mo drop dayon the next day, maka recover man gihapon in the long run kay diversified stock investments man ang equity fund.

if down ang market Ill go for B, pag nag saka na Ill go for A. if gasugod pag naog Ill go for A or wait for the time nga tan-aw nako mao najud lowest then Ill do a B. But sa mga walay time mo monitor when jud mo bottom ang price, A will still work but di lang maximized ang gains.

It's a different story if investing in stocks and 1 or 2 company ra gipilian. kay if down jud and di na ka recover ang company, maski unsa pana ka long term imo goal di jud mosaka balik ang price. Mao critical kaayo sa stocks nga you know what you're doing.

[makie]

B would be daytrading(swing,scalp etc) and the worst kind of trader kay 100% of capital in one shot -_-! unless kng naa kay crystal ball na 100% ang win rate then why not

Mutual funds is for investing, not trading. There are different types of investors. Some put it "all in" (option B) and some does it gradually (option A) and some keeps track of the market behavior and time their entry and exit. Either option A or B will give the better gains depending on the market behavior. Either way, the winner is always the one who gets the better position.

[rescyth]

wala man kaayo difference ang B or A sa Mutual funds as long as both long term ang goals.
Kay even if mo drop dayon the next day, maka recover man gihapon in the long run kay diversified stock investments man ang equity fund.

if down ang market Ill go for B, pag nag saka na Ill go for A. if gasugod pag naog Ill go for A or wait for the time nga tan-aw nako mao najud lowest then Ill do a B. But sa mga walay time mo monitor when jud mo bottom ang price, A will still work but di lang maximized ang gains.

It's a different story if investing in stocks and 1 or 2 company ra gipilian. kay if down jud and di na ka recover ang company, maski unsa pana ka long term imo goal di jud mosaka balik ang price. Mao critical kaayo sa stocks nga you know what you're doing.

There is a difference mn bay if you've been long enough in this industry to experience the turning points. You'll see why B is not advisable but I can't hold anyone at gun point to convince them. Para sko lng, I wouldn't "bet" my life's savings and risk my family's future for a high risk high reward instant gratification and we are talking about investing here. I would rather lower the risk and get above the industry's return and sleep better at night. As I said, everyone is focusing too much in the monies and not what they could lose... If an instance you place all your budgeted investing capital like B and the market drop 100 points in that year, Think about the psychological damage when you see your 16k is now worth 1 pesos...let see if you could sleep at night. Well that's the worst case scenario but I feel it's right kay grabe mn sd ang scenario if mu up ang gihatag.

I'm in no way insulting anyone here as it is not my intention, but I am giving my unbias opinion. I know how hard ang life dha sa pinas and raising additional funds ain't that easy. I see it fit if they see both sides of the coin before they start investing... The earlier they wake up from their dreams of grandeur and realize that you can't be an instant millionaire even in securities the better their rate of survival and be more focus instead in capital preservation.