Why I Invested in Memorial Plan?

We should focus on living life, but we should also not forget that there is an end for all of us.

For five years, I was living in the slums of Tondo. And true to what Catriona Gray said, ‘Life there is very poor.’ Whenever there is a deceased, wakes are usually extended and take up to 3-4 weeks. The main reason is to raise funds from abuloy and profits from nightly gambling such as mahjong, pusoy dos, tong-its, and other card games.

Dying in an urban area comes with a high price tag. As per St. Peter Life Plan, the cheapest funeral services package they have (as of writing) is P38,000. Discounts are given to senior citizens at P27000. This includes embalming, 4-7 days of wake services, casket, and internment services. Memorial lot/space is not even included. Read “Why I Invested in Memorial Lot.”

This amount can cause massive distress to the bereaved family if they are not ready for this untimely emotional and financial shock. It is an additional burden to the pain of the grieving relatives. But this can be avoided if we have been open-minded to plan for something that we don’t want to happen but is inevitable.

Death, although certain to happen, is the most avoided topic due to its sensitivity. Who would want to die? No one! But it’s going to happen with certainty. Then why not prepare for it, too. You, as an individual, should be the one responsible for arranging for it. After all, you don’t want to add more pain to your hurting loved ones if the time comes.

Last December (2018), I acquired a Memorial Plan from St. Peter Life Plan. They are the leading deathcare company in the country for almost 50 years now. For as low as P700/month, you can have a memorial plan. It is payable for five years only.

St. Peter Memorial Plans

There are three categories of memorial plans that you can avail of. All policies are payable in 5 years (monthly, quarterly, semi-annually, or annually). A 10% discount is given for spot cash buyers.

1. Traditional Memorial Plan 
This is an anti-inflationary plan that guarantees your choice of a Memorial Service Package. Complete with value-added insurance coverage, transferable, assignable, and available at easy installment payments. Prices start at P700/month. This is the plan I took. For more details, follow this link.

2. Traditional Memorial Plan with Money Back 
The same benefits as the regular Traditional Plan but with a money-back or refund of the entire amount paid. An amount equivalent to 20% of the Contract Price based on the annual mode of payment shall be returned to the Planholder each year beginning at the end of the 16th year from date of effectivity until the end of the 20th year while the Planholder is still living. Prices start at P1900/month. For more details, follow this link.

3. Cremation Plan 
This guarantees first-class cremation service performed by St. Peter Crematorium and accredited crematoria in selected areas nationwide. St. Peter Cremation Plans are only available in Metro Manila, Cebu, Davao and Bacolod City. Prices start at P1255/month. For more details, follow this link.

Traditional Plans Package Inclusions :

  1. Pre-selected casket (kabaong)
  2. Retrieval of the remains
  3. Embalming and funeral cosmetics
  4. Viewing arrangement (lamay) at St. Peter Chapels for four or seven days at home, complete with flowers.
  5. Internment services (libing) including luxury hearse (karo)

Cremation Plans Package Inclusions:

  1. Embalming and funeral cosmetics
  2. Provision of a metal casket (on St. Jude plan)
  3. A 3-day viewing arrangement (lamay) at St. Peter Chapels or at home.
  4. Full cremation services
  5. Marble urn

Value-Added Benefits*:

  1. The plan is transferable to any living person. It can also be assigned to any deceased person.
  2. A cash benefit is due to the beneficiaries in case of natural/accidental death or dismemberment.
  3. A waiver on installment, in case of disability.
  4. The unpaid balance is deemed paid if the planholder passes away.

*Terms and conditions apply.

St. Peter’s has many authorized agents selling plans nationwide. I went personally to their office, but they still contacted an agent to assist me. After filling out the application form, you will pay directly to the agent, and a receipt will be given to you. The same agent will come and collect your succeeding contributions. Just make sure that you kept your receipt for future reference.

If you are interested in knowing more or buying a memorial plan from St. Peter, you may contact my trusted agent Auggie Liberato (Au Jang). He will further explain the policy to you and answer all your questions.

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

Reference:
1. St. Peter Life Plan

Investing in Cropital

(Updated 22.May.20)

I believe that farming is the oldest profession, not prostitution, as others have claimed. It sounds like a weird comparison, but I want to emphasize the importance of farming to human survival. Food sustains a man’s life, and man cultivates plants to produce food since the beginning of time.

I grew up on a farm, and I know very well the life of a farmer. It’s not easy. We were lucky back then because my father was tilling our land. Many farmers don’t own farmland and are just a mere tenant of a particular landlord. For me, the most significant burdens to many farmers in the Philippines are the recurring typhoons, lack of capital, and lack of proper training on the latest agricultural technology.

The Future of Agriculture

With the younger generations called millennials abandoning farmlands, myself included, and prefer to work in the city, farming in the Philippines is in a tough position. The support of the government is still not enough to guide the farmers in the country.

Supports from private sectors and non-governmental organizations play a vital role in improving the yield of farmers further. I am glad to know that few companies are helping the farmers.

In my previous articles, I have tackled FarmOn as the new agricultural investment that many of us can join. In this article, I will discuss Cropital.

What is Cropital?

Cropital is a crowdfunding platform that connects anyone to help finance farmers in the Philippines. It allows any person to contribute money to support a farmer to grow crops. Due to lack of funding, many farmers run to 5/6 lenders, whose interest is up to 20% monthly. With Cropital, farmers get paid for labor and, at the same time, take a majority of the profit – significantly better than other lenders. Plus, Cropital trains them on the latest farming technology boosting their yields.

Why Invest in Cropital?

I have already invested in Cropital and have received profits from it. Cropital gives a fixed rate of return of 3.5% per cycle (4-6 mos), which is very small as compared to the average of 19% ROI I earned from FarmOn. Besides the low profit, I have continued my investment just for the common good. My little way of helping others.

A screenshot from my Cropital account.

I invested P5000 in August. After three months, I have received back my capital plus the interest. In November, I have reinvested my money, so I’m on the 2nd farming cycle now.

How Safe is Investing in Cropital?

Cropital is duly registered as Cropital Enterprises Corporation at SEC. Cropital does not guarantee any returns to its users. Although crops planted under Cropital management are covered by insurance under PCIC (Philippine Crop Insurance Corporation. This insures farms from risks brought by weather and pests.

How does It Work?

1. Sign-up – Users can sign up at cropital.com to join the community
2. Select farms – Members can view farms and select which farms to invest in.
3. Funding – A variety of options is available to send your money to Cropital. Once fully funded, the farmers will be provided with the resources they need to start farming.
4. Gain returns – After the harvest (4-6 mos), and once the product has been sold, the capital will return to the investor’s wallet, together with the profit shared.

What I find unique with Cropital is the ability of the investors to choose which farmer to help. A profile describing the farmer and the location of the farm is available for the investors to review.

Quick Peek

Risk Rate: Moderate
Legality: SEC-registered
Initial Capital: P5000
ROI: Low (at 3.5%) per 3-6 mos cycle

Final Thought

Cropital is a social enterprise whose primary goal is to provide farmers with scalable and sustainable financing. Its purpose is not really to profit but to help farmers. If you’re after a considerable ROI, then Cropital is not your cup of tea. However, if your advocating charity and social responsibility, then this is another avenue for you to help the needy and help make this world a better place.

Review (Investment Update – 22.May.20)

My investment with Cropital has not been fruitful as I expected.

A screenshot of my account dated 22May-20

As you can see above, I had invested P5000 (P4750 capital plus 250 transaction fee) on July 16, 2018. Another P5000 was invested on Nov. 27, 2018. It’s been 22 months now, but neither of the two farms where invested has been successful. Cropital has been sending email in every calamity happening in Luzon. They would always reason that payment will not happen anytime soon because the farms were affected by the typhoon, volcano ashfall, COVID-19 pandemic.

In my opinion, Cropital is not appropriately managed. It’s as if our money is just being given away. Two years of non-payment proves their inefficiency. The objective of the platform is trashed when the investor’s money is compromised.

Because of the above mentioned, I will not recommend investing in Cropital.

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

Reference:
1. Cropital

Earn from Being an Airbnb Host

The buying power of Filipinos nowadays has significantly increased because of the expansion of the middle-income class. Many can now afford to spend on shopping and leisure activities like traveling. It is very evident from the sights of jampacked malls all over the country.

You can always hear or see on social media, radio, TV, and prints the words vacation and “staycation.” People nowadays are always in search of new destinations to go, unwind, and enjoy. It could be within the city or to other islands in the Philippines. Tourism is undeniably a booming industry where you can jump on the bandwagon and profit from it.

bed-bedroom-chair-210265

How to Profit from Tourism?

With the increasing touristic activities comes the need for more accommodations. Having a property in a tourist spot will give you the advantage of hosting these adventure or tranquility seekers. If you are looking for a very unique investment in the real estate, don’t just go for the standard condo unit in Metro Manila or any typical house & lot. Look for a property that offers a place to live and a destination to go and an experience to try. You will have the option of living on vacation for life or constant income flow.

When I was in Boracay in 2016, someone handed me a leaflet of Boracay Newcoast. It’s an integrated tourism estate on the island developed by Megaworld. You can buy a condo unit, and the prices are just a little above the average condo units in Metro Manila. Imagine having a home on one of the world’s best islands.

Century Properties is currently developing a very unique and remarkably beautiful estate in Nasugbu, Batangas. Batulao Artscapes is dubbed as the world’s first livable art park. It is an expansive artventure community and a livable art park with designer homes, world-class vacation amenities, and an outdoor mecca.

Another realty developer, Revolution Precrafted, is building the “first livable food park” in the culinary capital of the Philippines. Revolution Flavorscapes at Lakeshore is set to rise in Mexico Pampanga. Amenities include a 12-hectare manmade lake, a community swimming pool, a cinema, museums, spas, a sports center, and pop-up stores featuring cuisines from 200 countries. This development is just a few minutes away from Clark, poised to be the next financial and governance capital of the Philippines.

Airbnb Hosting

Marc Manila used to be my colleague in a company in Dubai. In 2010, he acquired a house in a neighborhood in Laguna that has a recreation, leisure, and retail amenities. For two years, his investment was left idle. Just like many OFWs who have invested in decent homes in the Philippines but are living abroad, his property was almost reclaimed by nature. In 2017 he decided to refurbish and furnish his house and listed it in Airbnb. He earned an average net profit of P25000 monthly. Having seen such a high earning in that property and Airbnb’s great potential, he has invested in a condo unit in Tagaytay, a unit in Batulao Artscapes and one in Revolution Flavorscapes at Lakeshore.

His advice to OFWs is to buy a property where there are touristic activities within or just nearby. You can lease it for a long-term (yearly) or daily leasing through Airbnb while you are away. Your profit from rental will take care of the property’s monthly amortization. For hassle-free leasing, make sure to buy a property from a developer that offers an in-house longterm and daily rental (Airbnb) to give you both options whatever suits you best.

You can replicate Marc’s investment strategy. This is good for OFWs who are always outside the country. In the meantime, you lease it (long term or short term) and let the rental fee pay for itself. By the time that you are ready to go back to the Philippines, a lovely home is waiting for you.

Your condo unit in Boracay, your house in Batulao Artscapes or a house in Revolution Flavorscapes at Lakeshore, can be transformed into a money machine that will bring you a good income source. Aside from the fact that you can enjoy this property whenever you like to use it. In the end, we can’t be an OFW forever. Let us come back to the Philippines and reap the fruits of the investment we sow while working abroad.

If you are interested in acquiring property in Batulao Artscapes or in Revolution Flavorscapes at Lakeshore, you may contact Lea Godinez thru Facebook or email: centurypropertiesitl@gmail.com.

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

References:
1. Batulao Artscapes
2. Revolution Precrafted, CCEI join hands on Pampanga development

Renting Out Your Condo Unit

We have witnessed the construction industry in the Philippines booming for the past few years. Condos are just sprouting everywhere in Metro Manila and other highly urbanized cities across the archipelago. The continuous expansion of the middle class also fuels this growth, and many Filipinos have grabbed the chance to invest in acquiring condo units for their own use or for lease to earn profits.

OFWs, who contribute the most significant chunk of the country’s GDP, are one of the primary consumer targets by developers. If you are an OFW (or their family) or any investment-minded Filipino, this article might be of use to you as I will tackle some tips on how to invest in a condo unit.

Anne Delfinado-Lucido has been an OFW for many years. Most of these years she spent working in Dubai. She is, in fact, a colleague at work and a very dependable friend. Her investment journey started when her parents suggested getting a property. In 2014 she was lucky to acquire a condominium unit in Santolan (Pasig City) during its pre-selling stages. I had a chance to interview her to obtain some tips on investing in condo units.

Anne Lucido during our interview

Why Buy on Pre-selling?

Pre-selling means the time when the developer is yet to construct the building but has already been selling the units way in advance. Pre-selling prices are way lower than the price when the construction is complete. In most cases, the prices rise after the building completion, so it is highly advisable to acquire a condo unit while on the pre-selling phase. In the case of Anne, as she bought the unit during the pre-selling stage, her unit’s current value rose to over a million peso higher. You may wait for 2-4 years for the unit turnover to happen.

Condo vs. House & Lot

When asked why she picked out a condo over house & lot? She said that as an OFW who lives overseas and cannot use the unit for some time, a condo is the best investment option. True to what she said, many OFWs who have acquired big houses in the Philippines while the entire family is living abroad have just left their house unused. Leasing a house & lot is not as widely in demand as condo units that are usually near workplaces and schools and situated within the city walls.

Profiting from a Condo Unit

If you can’t occupy your unit yet, you can quickly profit from it. There are two ways of earning a peso from a condo unit.

Short-term lease
Rentpad and Airbnb are the most popular condo unit rental booking sites catering to locals and foreigners looking for accommodation. Airbnb will make your unit available to tourists looking for alternative accommodation as compared to pricey hotel rooms. The rental duration is usually taking days to weeks only. Hence it’s just short term. A typical daily rental rate of a unit in the Mall of Asia complex starts from P2500/night. With the right choice of location, condo unit short-term leasing can be a profitable venture.

Long term lease
In longterm leasing, the tenant stays for months or years. If you own a unit, you can find a long-term lessee yourself from your friends or relatives. The easiest way to a hassle-free long-term lease is to allow the condo developer to manage the leasing. This is the option taken by Anne. Her condo developer is DMCI, who oversees the rental of her unit. With the minimum leasing duration of a year, Anne will not worry about whether it is vacant or occupied.

The Disadvantage of a Condo Unit

A building has a limited lifespan of 50 to 80 years. After that, it will be demolished as it would not be safe to use. The developer will provide the owner with a certificate of ownership.

Unlike a condo unit, a house & lot is an evergreen investment because the value of the land appreciates over the years. This property can be passed down from one generation to another. Here you will get a land title as proof of ownership.

Where to Find an Agent?

There are many new condo units available in the country, and real estate sales agents are scattered everywhere. You can find them on Facebook and any social media, giving flyers in the mall and on the busy streets of the city. Just make sure that you are dealing only with a legitimate agent. Message me if you want some recommendations.

Loan and Financing

If you can pay outright cash, then well and good. If you can’t, you can also pay in installments. You can obtain a loan from the bank where you will pay up to 10 years of monthly amortization. Your sales agent will help you guide the process of getting a bank loan.

Importance of a Right Location

The key to getting a considerable profit obtained from leasing a condo unit is the location of your condo. The best areas are of those near schools/universities, tourist spots, in the central business district, near the train stations, and airports, to name a few.

Let Money Works for You

The monthly rental that Anne is earning now covers 72% of the monthly amortization she is paying for the unit. If the lease continues for ten years until the loan matures, then she has acquired the unit by paying only around 30% of the total price. It is such a wise investment move.

Anne has expertly played her investment cards so cleverly and is making money works for her. Kudos to Anne Margret!

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

Why I Invested in Memorial Lot?

Death has always been a sensitive topic to bring up. However, its arrival is inevitable. It is sure to happen that we should not be ignoring the possibility of it coming.

Death brings forth both emotional and financial costs to the grieving loved ones. I was born in the province where memorial lots are given for free. Where neighbors will make coffins out of scraps without any cost.

This is not true if you are living in an urban area or in the city where everything has a corresponding price tag. Dying in the city is too costly and brings enormous financial burdens to the deceased family. This is why funeral wakes in Manila are extended for weeks to raise funds from donations (abuloy) & fees from the nightly gambling.

May Forever!”

When life ends, the tomb is your final resting place. That is your “Forever.” Then why not invest in a decent grave? The Pyramids of Giza in Egypt are tombs of the Kings. Each was built for years. Ancient Egyptians spent a lot in the afterlife. Thousands of years after that, the Pyramids live on as a testament to how these kings are remembered until eternity.

Let’s Call it an Investment

Last month I bought a memorial lot at Manila Memorial Park (Dasmarinas, Cavite). My sister & I bought two adjacent lots for P32,500 pesos each. The current price is about P75000 each if you buy directly from the park’s management. We were lucky enough to find a lot owner who is relocating to another province and needs to dispose of the lot urgently. It was a real deal for us, and we wasted no time.

Where to Buy?

The Internet makes our life easy nowadays. There are many agents available on Facebook or just search on Google. Be extra careful and make sure to deal with a legitimate agent only. If you are in Cavite area, I can give you my agent’s contacts. Just drop me a comment below.

I would also recommend for you to invest in a memorial plan. Read “Why I Invested in Memorial Plan?

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

How to Buy Mutual Funds Online via COL Financial

COL Financial makes investing in Mutual Funds (MF) easier and faster thru CCOL Financial makes investing in Mutual Funds (MF) more straightforward and faster through COL Fund Source. It’s a supermarket with 26 kinds of mutual funds. All the top 6 Fund Providers in the country offer their mutual funds through COL with ZERO front-end fees. Read “How To Invest In Mutual Funds In The Philippines?” for an overview of MF.

Below are the steps on how to buy Mutual Funds:

  1. Log in to your COL Financial account.
  2. Tap the Mutual Fund tab. It will take you to COL Fund Source website.Capture
  3. Click Order EntryCapture 2
  4. If it’s your first time to buy, you have to answer the Client Sustainability Assessment and FATCA Questionnaire. Just click Proceed to Client Sustainability Assessment Questionnaires.Capture3
  5. Now you can start buying Mutual Funds by clicking Order Entry again.  Note that each fund requires a minimum of P5000 on the first purchase and a minimum of P1000 on subsequent purchases.
  6. Type in the Fund Code box the fund that you want to buy. I would recommend XPEEQXPEIF, and XSLEQ, as these are the most profitable mutual funds. You can select other funds by clicking Fund Code (in blue link). Enter the Amount then click Preview Order.Capture7
  7. In case you select a fund which is not suitable in your Investor Profile, confirm the waiver that would appear. Otherwise, proceed to step 8.Capture5
  8. Review your order, enter your password and click Place Buy Order.Capture6
  9. Wait for 2 working days for the transaction to be reflected in your portfolio.
  10. Log-in to the main COL Financial page and tap Trade and then Portfolio tab to monitor your investments.Capture8

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

References:
1. Screenshots taken from my COL Financial account

Investing in the Philippine Stock Market

(Updated 23.May.20)

Did you know that every Filipino can become an owner of Jollibee or SM and get a share of their income?

How does it feel when one Sunday morning you go to ‘your’ SM mall to shop then savor that crispylicious, juicylicious, and finger-lickin’ good Chickenjoy at Jollibee that you are a part-owner, too.

It sounds like you’re a big shot, huh? But it only requires a starting capital of P5000, even cheaper than that smartphone of yours.

This can be made possible by buying the company’s stocks by investing in the stock market.

What is the Stock Market?

Stock Market is a place where you can buy shares of stocks of publicly listed companies. A stock is a share in the ownership of a company. A Stockholder is the owner of stock/s in a corporation. On the other hand, Stockbroker is someone who executes buy and sell orders for shares through a stock market.

The Philippine Stock Exchange (PSE) is the sole stock market in the Philippines. Only publicly listed companies can sell stocks. PSE thoroughly selects a company to be allowed to register based on its track record.

To illustrate, let us take Jollibee as an example. You, as an investor, can be a part-owner of Jollibee. All you need to do is to buy shares of stocks of Jollibee listed in the PSE through a stockbroker.

How to Earn in the Stock Market?

There are two ways to earn in the stock market. One is Dividends, which a part of the company’s revenue provided to stockholders. If the company’s profits are enormous, dividends are also high. The second way is through Capital Gains. When a company grows, its price per share is also rising. If you have bought a stock for P10, after five years, the rate rose to P100, and you have a gain of P90/share.

How to Open an Account?

You have to open an account with a stockbroker to start investing in the stock market. My broker is COL Financial. Read “How to Open an Account with COL Financial?” to learn more.

Best Stock Market Investment Strategies for Beginners

Based on my two years of experience in the stock market, the best strategies to invest, considering a lower risk, but maintaining a profitable gain are Peso Cost Averaging and investing in Equity Funds (Mutual Funds). These are also the easiest and hassle-free investments. Read my articles “Mutual Funds” and “Peso Cost Averaging” for details.

How to Buy Stocks and Mutual Funds?

It has been a wrong notion that investing in the stock market is tough. Buying stocks/equity funds is as simple as Facebooking. All you need are a computer/smartphone and internet. For more details, read “How to Buy Stocks?” and “How to Buy Mutual Funds?

How to Succeed in the Stock Market?

When I started investing in the stock market, I also encouraged the rest of my family to join. We opened a total of 4 accounts. While the three accounts prospered, one didn’t. It belongs to my brother. But what happened? Well, he just invested P5000 in the past two years. Now, his investment remains 5000 with a few pesos gains.

In the stock market, you need money to earn money. Here money works for you. You need capital.

What is good about this investment is it doesn’t require a large sum to start. You need only P5000 in the beginning. But for heaven’s sake, commit a monthly investment for the next five years. Only then will you feel that your money is earning.

Who are Suited for Stock Market Investment?

Anyone can invest in the stocks; however, here are the group of people whom I think stock market investment suit well:

OFWs possess an excellent income flow but struggle to start a business in the Philippines as they are working abroad.

Working Professionals possess a considerable fund, but find no time to start a business as they are busy with their career.

Millennials/Young Professionals. Many of the new entrants to stock market investments are millennials (people born in 1980-1998). These are technologically savvy, innovative, entrepreneurially-minded individuals.

Retirees. If you are in your 60’s now, you might still live a good 30 years or so. A part of your pension or retirement bonus can be invested in the stocks while you enjoy your retirement.

How Much Have I Earned in The Stock Market?

This investment doesn’t promise excessive earnings to the investor. It does generate a good income from safe, low risk, and hassle-free investment. Mine has earned P35,000 in 22 months. Read this “How Much Have I Earned in the Stock Market?” for more details.

My Investment Update (23.May.20)

It has been four years since I started investing in the stock market. There was a point when my investment had reached around 400,000 pesos. I have tried long-term investments through Peso Cost Averaging, Equity Funds, and Strategic Averaging Method (from Truly Rich Club). I’ve also ventured in day trading for a few months.

After three years of opening my account, in 2019, I have started diversifying my capital and pulled out almost all my money in the stock market. As of writing, I only have 34,000 pesos left in my COL Financial account.

I feel that stock market investment does not fit in my financial goal. It does not satisfy my need to have a steady income source that I require after my planned retirement. This does not mean that the stock market is not suitable for you, as we have different needs and goals in life.

I will have a separate article on the Lessons I Learned from Stock Market Investing and will be posting soon.

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

Investing In Mutual Funds

(Updated 23.May.20)

There are many investment products out there where you can pour your money to earn a passive income. By definition, passive income is money collected from a business that you have not actively participated in its day to day operations.

One particular investment product that I have personally invested in is Mutual Funds (MF). Mutual Funds are professionally managed investment products, registered under the Securities and Exchange Commission. It pools together a collection of assets – generally stocks, bonds, cash, or a combination thereof – held by multiple shareholders to invest.

Types of Mutual Funds

Mutual Funds are categorized according to where the pooled assets are invested. There are different types of mutual funds to match your financial goals.

  1. Equity Index Funds – Money will be invested in stocks that are components of the PSEi. One of my investments is of this type.
  2. Equity Funds – Invest in individual stocks listed in the Philippines Stock Exchange. The remaining 2 of my MF investments are Equity Funds.
  3. Balanced Funds – Money is invested in a combination of both individual stocks and bonds.
  4. Bond Funds – Invest in bonds issued by corporations and the Philippine government.
  5. Money Market Funds – Invest in short-term time deposits, corporate bonds, and government securities.

Advantages of Investing in Mutual Funds

  1. Professionally Managed -The money that you have invested will be managed by professional fund managers who are experts in making investment decisions. Investing in MF is way easier and safer than directly investing in stocks yourself.
  2. Small Capital – The initial capital is only P5000, and you can add a minimum of P1000 thereafter to increase your investment.
  3. Diversified – Your money will be invested into a variety of assets hence minimizing the risk of losses.
  4. Easy to Withdraw – You can easily redeem your investment at any time.

My Investment in Mutual Funds

My Mutual Funds so far have posted a reasonable profit. I have started four months ago around P100,000 capital and have earned between 10,000 -12,000 pesos so far.

My Mutual Fund portfolio with COL

Getting Started

  1. Open and fund an account with COL. Follow the process in How to Open an Account in COL Financial?
  2. Start buying Mutual Funds of your choice. The easiest way to select which fund to invest is to check its past performance. You can visit the website of Philippine Investment Fund Association to make a comparison of most mutual funds available in the market.

My Investment Update (23.May.20)

It has been four years since I started investing in the stock market. There was a point when my investment had reached around 400,000 pesos. I have tried long-term investments through Peso Cost Averaging, Equity Funds, and Strategic Averaging Method (from Truly Rich Club). I’ve also ventured in day trading for a few months.

After three years of opening my account, in 2019, I have started diversifying my capital and pulled out almost all my money in the stock market. As of writing, I only have 34,000 pesos left in my COL Financial account.

I feel that stock market investment does not fit in my financial goal. It does not satisfy my need to have a steady income source that I require after my planned retirement. This does not mean that the stock market is not suitable for you, as we have different needs and goals in life.

I will have a separate article on the Lessons I Learned from Stock Market Investing and will be posting soon.

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

Reference:
1. COL Financial

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