EIP vs Mutual Funds

[gtboy]

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Which do you think is more favorable?

Please post your comments and ideas below. Thank you.

[wizard_jamex]

@TS - Instead of CitisecOnline EIP (stock broker), it should be stock market or invest in the stock market. CitisecOnline EIP is not an investment vehicle. It's a program/services of Citiseconline that they offer to their clients.

[jeshcel]

with citiseconline, you can view how much is your gain and loss.... all the income and losses is yours but the work is yours also
but with
mutual funds, you simply just let fund manager do the job and you dont know how much really is the income yet you dont do anything. dawat limpyo lang.

its a preference in your part.

for me, i want both

[Theko]

since i am a follower of Warren Buffett, the richest investor in the world, i would say go for EIP. If you invest in companies that are fundamentally strong, strong enough to last for the next 20 years, then you should have no problems. Diversifying into so many companies would only lower your earnings. Go for few, good companies.

[rescyth]

since i am a follower of Warren Buffett, the richest investor in the world, i would say go for EIP. If you invest in companies that are fundamentally strong, strong enough to last for the next 20 years, then you should have no problems. Diversifying into so many companies would only lower your earnings. Go for few, good companies.

Sakto jd si theko expecially on the diversification part. For Warren Buffett, he's a different kind of investor...he is what is termed as a "raider" in the financial industry. He doesn't own commonshares but he own shares of the actual company. So any profit of X, he earns by certain % of that earning.

[jeshcel]

mga bai, dba if mag diversify kay mo lower pud sa risk? but mao pud lagi, chances lower pud income. pro if sa stocks, dapat ang mga strong companies gyud to last next 20 years.

[wizard_jamex]

I prefer both stock market and mutual funds...

[lorenzoleo]

prefer both. Newly launch First Metro Sec Online. Power kaayo. I been there at Marco Polo last Mar. 17, 2011 and have a great conversation with Gus Cosio president of FAMI. hehehehe! Always invest for the long term, nothing happens great on short term. Swerte jud nga bata pa jud ko na educate aning butanga, I thank IMG for openning up my mind into investing world.

[Metz]

go for both.
if medyo newbie paka tend to invest more in mutual funds.
the more experience you have, stocks becomes a better option due to increased risk but bigger gains.

[makie]

Go for both. Both have their own pros and cons.

EIP (Investing in Stocks)

Pros: You're in control of your investments. Ikaw ang mopili sa stocks nga imong paliton as well as the quantity of shares. Mas flexible sad because you have all the data to back it up (coming from news, financial reports, income statements, company status).

Cons: Riskier than mutual funds. Dili pud guaranteed nga nindot ang forecast sa company mosaka iyang value. It requires market sentiment. Maski unsa kanindot ang company kung walay market sentiment, either hinay kaayo na or moubos na. Take Cebu Pacific for example recently. And lastly, since you'll be doing the investing yourself, you need to have a sufficient knowledge and stay updated about the market status. You need effort and time for this

Mutual Funds

Pros: Convenience. Pwede ra nimo pasagdan imong kwarta because a professional fund manager will do the investing for you. It is also invested in stocks but mas diversified because fund managers also invest in bonds and other assets. As far as the risk is concerned, lesser ang risk sa mutual funds compared sa stocks.

Cons: Probably lesser growth than stocks. Sa stocks, there were some companies that grew to something like 2000% in just 2 years. So far, walay mutual fund companies ang nakabuhat ana. PhilEquity grew by 2000% pero it took 15 years. Naa puy impact ang diversification because bonds normally perform lesser than stocks so affected ang mutual funds.

IMO, go for both. Mas diversified imong mga investments then nindot pud kaayo ang potential of growth. Mas moubos pud imong risk ana.