Panu mag start mag invest sa stock market.

[bagugab]

An index fund invests in all 30 stocks that are part of the PSEi (Philippine Stock Exchange Index).

The 30 stocks are as follows:

Ayala Corp. (AC)
Aboitiz Equity Ventures, Inc. (AEV)
Alliance Global Group, Inc. (AGI)
Ayala Land, Inc. (ALI)
Aboitiz Power Corp. (AP)
BDO Unibank, Inc. (BDO)
Bloomberry Resorts Corp. (BLOOM)
Bank of the Philippine Islands (BPI)
DMCI Holdings, Inc. (DMC)
Energy Development Corp. (EDC)
Emperador Inc. (EMP)
First Gen Corp. (FGEN)
Globe Telecom, Inc. (GLO)
GT Capital Holdings, Inc. (GTCAP)
International container Terminal Services, Inc. (ICT)
Jollibee Foods Corp. (JFC)
JG Summit Holdings, Inc. (JGS)
LT Group, Inc. (LTG)
Metropolitan Bank & Trust Company (MBT)
Megaworld Corp. (MEG)
Manila Electric Company (MER)
Metro Pacific Investments Corp. (MPI)
Petron Corp. (PCOR)
Robinsons Land Corp. (RLC)
Semirara Mining and Power Corp. (SCC)
SM Investments Corp. (SM)
San Miguel Corp. (SMC)
SM Prime Holdings, Inc. (SMPH)
PLDT (TEL)
Universal Robina Corp. (URC)

So even if you just invest P1,000, your 1,000 will be spread out across all 30 stocks.

If you buy stocks individually, you won't even be able to buy one board lot of PLDT stocks since that requires 5 stocks minimum at 2k each or roughly 10k. Same goes for many stocks in the index (AC requires 10 stocks at 750 each or 7.5k, etc).

Index funds are the cheapest way to have a diversified portfolio. The only drawback is a management fee of 1.5% (this applies to both BPI and PhilEquity index funds). But if you don't know what you're doing, you'll lose more than 1.5%, so index funds are still the best option for passive investors.

Previously I managed my own stocks, but recently I've started to shift to index funds (BPI too). It's boring because it's so simple, but even the investing guru Benjamin Graham says that very few people will beat the index over a course of several decades, and it will take so much effort to beat it, while just keeping track with the index takes close to 0 effort. 😊

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thank you sir...one more thing: ilang percentage po ba ang na-e-earn sa PEIF?

[jut703]

thank you sir...one more thing: ilang percentage po ba ang na-e-earn sa PEIF?

As with any equity investment, THERE IS NO GUARANTEED RETURN.

If you started investing last year when the PSEi was at 8,000, you would've suffered a big loss (-25%) if you sold last month when the market dropped to 6,000.

However, if you bought in say, 2010 when the PSEi was at 3,000, you would have made a sweet 266% return if you sold last year. Even if you sell now at the current level of 7,200, that's still a 240% gain.

Nothing is predictable over the short term. But if you keep your money in for about 10-15 years, you'll most likely gonna get positive returns.


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[bagugab]

As with any equity investment, THERE IS NO GUARANTEED RETURN.

If you started investing last year when the PSEi was at 8,000, you would've suffered a big loss (-25%) if you sold last month when the market dropped to 6,000.

However, if you bought in say, 2010 when the PSEi was at 3,000, you would have made a sweet 266% return if you sold last year. Even if you sell now at the current level of 7,200, that's still a 240% gain.

Nothing is predictable over the short term. But if you keep your money in for about 10-15 years, you'll most likely gonna get positive returns.


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so given the current index *7306.74 today, would you advise me to invest now? or hintayin kong bumaba? i plan to keep invested for 5 years before i get it.

[jut703]

so given the current index *7306.74 today, would you advise me to invest now? or hintayin kong bumaba? i plan to keep invested for 5 years before i get it.

Everyone is forecasting another dip back into the 6,xxx level. I was expecting it too so I was surprised it breached 7,000 even if fundamentals haven't changed.

Much of the rally is brought about by sentiments of people regarding the delayed Fed rate hike.


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[dreamur]

I just placed P50K on a VUL + P50K/yr for the next 4 years. I know it is expensive compared to UITF pero ang kulit ng manager. Inisip ko na lang na additional life insurance ko para kay kumpare.

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[IamVince]

Read and practice, preferably with small amounts first. baby steps...