Quote Originally Posted by jut703 View Post
Having invested in all of your options, I would say that the most liquid would be UITFs and stocks. UITFs are far easier to manage - just invest monthly and let compounding and the economy do its magic.

For stocks, you have the flexibility to buy and sell different stocks at different times. However, depending on how much money you'll put in regularly, you might not be able to diversify as broadly as with UITF. For example, you invest 10k a month, and want to buy PLDT shares. At 2k per share and a minimum of 5 shares, you consume your entire 10k budget on one stock. Then next month you buy some other stocks to balance out your portfolio, so in effect, you don't really get to maximize cost-averaging because you're buying different stocks at different times with potentially different market trends.

I could go on, but bottomline:
- Minimal effort, decent returns: index UITF
- Significantly more effort, marginally better returns (or worse, if you suck): stock market

UITFs also have lower management fees than VULs. 1.5% is standard, unlike with VULs where they're not as transparent with their management fees, and you're really not earning until the 10th year or so. Also, the returns of my VUL (invested in equity) aren't up to par with the index.

As Benjamin Graham says - index funds are the best tool for the average joe to reap the benefits of a growing economy without having to pour in too much effort.


Sent from my iPhone using Tapatalk

For index funds, you at least need to check whether the market is overbought/oversold, whether valuations are still reasonable, etc. Nalugi din yung bumili ng index fund back when it hit 7800, ngayon lang sila medyo nakakabawi.