Good Investments for 2015: Where To Put Your Money This Year

Posted by Fitz Villafuerte under Investing on January 5, 2015

It’s now time to answer what many Filipino investors are asking… where should they invest in 2015?

But before I tell you my investment tips for the Year of the Sheep, let’s take a look first at my recommendations last year and check how the market performed with respect to my advise.

A Year in Review

Last year’s article mentioned five possibly good investments: Exchange Traded Funds, Personal Equity and Retirement Account, Balanced Funds, Personal Learning and Shariah Compliant Securities.

Unfortunately, the PERA Law was still a no-go last year (more about this later). And we’ll take Personal Learning out of the assessment because after all, financial education is always a good investment.

Which now brings us to the first investment in last year’s list, Exchange Traded Funds or ETF. If you don’t know what an ETF is, then please read my Exchange Traded Fund explanation here.

Currently, there’s only one ETF in the Philippines, the First Metro Philippine Equity Exchange Traded Fund or FMETF. From the chart below, you’ll see that FMETF was indeed a good investment for last year. I checked my portfolio and it shows 21% gains!

fmetf-chart

Next, we check Balanced Funds. I am invested in the BDO Balanced Fund and a quick check at the performance of this UITF for last year shows around 17% absolute yield!

bdo-balanced-fund

Finally, I recommended Shariah Compliant Securities last year. I invested in companies that are both on this list and those that are in COL Financial’s Premium Growth Stocks and Securities list.

The table below shows my calculated gains in 2014 from the four companies that qualify to the said criteria above.

stocks

Where To Invest in 2015

So overall, last year’s recommendations did very well, don’t you think?! But of course, the more important question is, where am I investing this 2015?

Personal Equity and Retirement Account (PERA)

I have my fingers crossed that this would finally be implemented this year (hopefully this month, or in February).

I went to both BPI and BDO last December to inquire as both banks are expected to be PERA Investment Product Providers, but none of the staff knows about it yet.

I promise to write more about PERA and actually share my experience in opening a PERA account as soon as possible.

The Philippine Stock Market

It’s the year before the Philippine Presidential elections and also, the start of several initiatives for the ASEAN Economic Integration in various sectors.

What this essentially means is that foreign investors will be looking at the Philippines for investment opportunities.

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I believe the stock market would go more sideways this year, and its direction starting 2016 would greatly depend on who would be our next president, and how our government policies will adopt to the ASEAN integration.

I’m taking a more optimistic view and say that the country’s economic growth will continue, and thus, there will be more record highs for the Philippine stock market in the next several years.

And if so, then it means this year is a good time to enter while the bull rests and before it resumes its run after the presidential elections.

Soldivo Strategic Growth Fund

Last October 2014, the Soldivo mutual funds got a green light from the SEC. A new player in the peso-denominated equity fund is the Soldivo Strategic Growth Fund, Inc.

With no historical performance to analyze, my recommendation comes from the trust that I have on the Soldivo mutual fund board members – Registered Financial Planners Institute Directors, Henry Ong and Randell Tiongson; Philam Life CEO Rex Mendoza; and International Marketing Group CEO Noel Arandilla, to name a few.

invest-2015

Investments Defined

I would like to clarify that when I say “investments”, these are instruments where you will put your money and NOT touch for five years or more.

Simply, do not invest money that you’ll need in the next couple of years to the instruments mentioned above as they are both high-risk and for long-term growth.

With that said, I know you’re wondering how can you invest in the three recommendations above? Here’s how:

Personal Equity and Retirement Account (PERA)
Wait for news regarding its official launch, and ask your bank if they’ll be offering it. I know both BPI and BDO will be investment product providers of PERA.

The Philippine Stock Market
Open an account with a registered and licensed stockbroker and buy the company shares through them.

As you may already know, my stockbroker is COL Financial. You may send an email to berich@colfinancial.com to inquire on how to open an account with them.

Soldivo Strategic Growth Fund
Open an account with Rampver Strategic Advisors, the fund’s investment manager; or become a member of the IMG Wealth Academy by signing up here.

But wait there’s more…

Of course, financial education is always a good investment in any year.

So if you’d like to learn about investments with me this 2015, then please visit the website, Events by Fitz Villafuerte and sign up to receive updates with your name and email on the sidebar.

———
Photo credit: lendingmemo


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27 Responses to “Good Investments for 2015: Where To Put Your Money This Year”


  1. Hi Fitz, just wondered why your list didnt include the Philequity mutual funds?

  2. Hime-chan14 says:

    Hi fitz!!! I’m interested sa Soldivo fund. I learned that by attending sa IMG. Dapat ba talaga member ka ng IMG to avail it?

    Hindi kasi ako nagsign up sa IMG kasi it’ll be against sa company policy namin. 🙁

  3. Ritz says:

    Hi Sir Fitz!

    Happy New Year!

    Congratulations, your investments were good last year! I had joined last Feb. 2013 in the BDO EIP-Equity program where 2k per month is being automatically deducted from my savings account. As of now, I had 3 COPs at hand which I plan to continue and redeem 10 years from now for my son’s college educational fund.

    I wish I also joined in BDO Balanced fund for a year so I can have 17% growth. Thanks for sharing, I might consider this investment this year. I have extra money around 150k which I plan to pay as DP for a house and lot payable in a year, I believe this could be a good investment to consider before I pay the DP which is due in November 2015.

  4. Sheila says:

    hi fitz! happy new year! would you advice to still proceed in investing in BDO balanced fund? I’m planning to add my investment this month for my daughter’s future. 🙂 thanks!

  5. Ed Zipagan says:

    Hi Fitz,

    Thank you for the article about investing and where to put your money this year.
    Mid of last year I started investing in the stock market with the help and guidance of the Truly Rich Club of Bo Sanchez. I opened an account with COL and followed the SAM of Truly Rich Club. I also invested in the Prulife’s PRULink Exact Protector 7 – I’m not sure if you know about this seven pay variable product that provides living, disability and death benefits. Your money or investment will be linked to various types of fund performance. If you are familiar with this kind of variable insurance, can you tell me if this is a good investment?

    Thanks and Happy New Year.
    Ed

  6. Fitz says:

    @Rhodora
    I’m a bit on the fence with PEMI because they have high fees despite their excellent performance. With a lot of people opening an account with them, those fees would probably remain as high.

    Moreover, investing directly in stocks, from my experience, gives higher yields if you buy premium growth and/or index stocks. However, I included SSGF in the list because it’s a new equity fund and the fees are still at par with most stockbroker fees, making it a good alternative.

    Lastly, this doesn’t mean you should not invest in mutual funds – PEMI, FAMI, PAMI and others. In investing, diversification is still the best way to lower your risk – so you should invest in as much instruments that you can afford.

    @Hime-chan14
    You can contact Rampver Strategic Advisors and open an account with them instead.

    @Ritz
    Actually, the absolute yield of the BDO Equity fund for 2014 was higher at around 22% – congratulations on choosing that one. 😀

    Also, since you’re going to use the P150k by November, it might be a bit risky to put it in the Balanced fund, which should be a medium-term investment (3-5 years holding period). My advise is to consider a lower-risk investment such as the Money Market or Fixed Income fund. Or just put it in a time deposit.

    @Sheila
    Yes, it’s still a good choice to invest in the Balanced fund. If you’re investment horizon is more than 5 years, you can also choose to put it in the Equity fund instead.

    @Ed
    I’m not familiar with that Prulife product but I know that’s a VUL, which is an “okay” investment (regardless of the insurance company).

    Doing direct investing in stocks, UITFs and mutual funds will normally give better returns, so getting a VUL is something I don’t really recommend if you’re after capital growth.

    However, you’re already paying for it, so just continue with the plan as at least, your money is growing at a rate higher than inflation and hopefully, faster than the market average.

  7. Tonyboy says:

    Hi! Fitz, I would like to ask if corporate bonds also appreciate in value or has potential capital growth??

  8. Fitz says:

    Hi Tonyboy, no they don’t as corporate bonds are basically debts of the company to you, so you earn through interest payments. They’re low to medium-risk investments for medium and long-term capital growth. Value appreciation, however, does happen through Bond Funds because you’re buying shares of a mutual fund company.

  9. penny_08 says:

    Hi Sir,
    May questio

  10. penny_08 says:

    Hi Sir
    May question po ako regarding MF Soldivo,
    Paano ko po malalaman kung nag gain/loss?may online po ba or tracker na ibibigay?

  11. Randel says:

    Hi sir Fitz,

    With all these information and knowledge on financial management, investing and saving preferably, you’ve been sharing to us, I just wanna say, THANK YOU.
    This year, I will invest again in stock market, using PCA. I decided to use this strategy since I still have to study market movements. The first time I joined, last 2011, I was unable to sustain. But now, with my better financial management (which I acquired through readings from different RFPs), I know I’m on a better journey now towards my goals.
    Continue sharing your knowledge and inspiring others. God bless you.

    Randel

  12. alvin says:

    Hi sir,

    I invested last year sa security bank uitf equity fund at based on last year performance natalo nito ang uitf of other banks like bdo at bpi. Sa palagay nyo po magtutuloy tuloy yung pagiging no.1 nito?

  13. Kevz says:

    Hi Fitz, if I will use my plan investment for retirement (55 yrs old), what would be preferable, investing in PERA or mutual fund equity or both(50/50)?

  14. Marie says:

    Hi Fitz. I am one of those who invested on launch date (well, I accomplished docs, placement and all before launch date). As indeed, there’s no historical data yet, I invested for 3 reasons: 1) buying below par, 2) the fund managers, 3) diversification…

  15. jennifer v. cervantes says:

    hi…im jhenn ..ask q lng sana kung mgkno ang kailngn pr mkpg invest s stock mrkt?

  16. Mar Neypes says:

    Hi Sir Fitz,

    This is Mar. I opened an account lately this February on Soldivo Strategic Growth Fund. I am just concerned lang po kasi until now I don’t receive any letter or email from them that my account has been approved or verified. How long po ba ang processing nito? I don’t have contact number sa Soldivo and can’t find internet research. Hope you could help me

    Thank you.

  17. Alberto Fabian says:

    i will start investing 10k a month sa stock market. which company or which stock should i buy? i plan to do this for 3years. any advice please? how about mutual funds of bpi and bdo? thanks and more blessings

  18. Torri Howard says:

    I would like more information on which currently would be a good investment.

  19. Weng says:

    Hi Fitz.

    Good day. Just like to check for any updates on PERA? Is this already available?

    Thanks,
    Weng

  20. Fitz says:

    Hi Weng. No update yet on PERA, sorry. I will surely blog about it when it’s already available because I’m sure to open an account.

  21. caesar says:

    Hi Fitz,

    Is security bank peso equity fund will perform same as last year? As I observed they outperforming compared to bro, bpi and metro bank

  22. bernadette fernandez says:

    Hi fitz,
    I registered wd live forex trading ds coming may16 but i haven’t received the payment details to complete my registration. Thanks!!

  23. Alex says:

    Good day!

    My overall COL protfolio has been negative for 2 years now. however, there are months where I would have some gains and I sell selected stocks.

    Initially I was thinking that gaining around 4k whenever I sell a stock is a positive thing. but now i’m questioning myself because my overall portfolio has always been negative.

  24. Eugene Echague says:

    Sir Fitz,
    Thank you so much for the advices. I keep on reading your blog as one of my guide towards Financial Freedom and for my additional information.
    I agree that Financial Education is one of the good Investment for yourself first.

    @Hime-chan14

    like what Sir. Fitz advice, is it ok also to call Rampver for you to start investing in SOLDIVO. But if you didn’t try to seek an advice from IMG CEO Noel Arandilla, I strongly suggest to meet him at IMG Office and raise your queries. As an IMG Affiliate, the advantage of becoming IMG Affiliate is you will learn more about investing strategies and you will experience increasing your cash flow para lumaki ang capabilities mo to invest in some other investment vehicles because of the seminars and mga trainings from International Marketing Group.
    Becoming of IMG Affiliate is one of the good start to invest in your Financial Education, as Sir Fitz mentioned in the last part of this blog.

    Thank you so much again Sir Fitz, especially in acknowledging the International Marketing Group.
    God bless you always and to all!

  25. weng says:

    hi sir fitz!

    plss advise, my family is planning to get the AMBITION X of AXA? is this great investment?

  26. NeedToKnow says:

    Hello, Sir, I must say that, of all the blogs I have read about financial freedom, yours is the most informative and sincere (can’t find the appropriate words though). BTW, sir, I am interested in investing but I only have Php20,000.00, Iam willing to invest for five(5) years, but I couldn’t guarantee monthly deposit as stated in the other blogs I’ve read. Would like to know which type of investment is good/effective for such amount /situation? Thanks in advance.

  27. Tet says:

    Hi Fitz!

    When I started investing, I tried most of the investment vehicle to diversify and to compare. I invested in mutual fund, UITF, stocks, VUL and real estate.

    I love your blog but I know that you’re not a believer of VULs. But for me, VUL works best… next to real estate. I read in your previous article that VULs are for lazy people. I guess I’m lazy…

    VUL works for me because I don’t want to be stressed on the decisions I make with stocks. In VUL, I get to sit back and relax, do my own thing, focus on my passion which is cooking and know that professional fund managers are doing their job. I mean, the average 17.21% annual compounded interest invested in equity for 9 years is not a bad performance at all for a VUL (based from my experience). I don’t think I even match the interest that I invested in stocks. Why is that? Because I’m lazy and inconsistent. I’m not going to invest in stocks every month if I know it’s not required, but in VUL, I get to discipline myself because I’m obliged to pay premium. The best part of it is if I die, my son will immediately get the sum assured and the fund value. It’s the only asset that will not be frozen and so my son could get the benefits and use that to pay for the estate tax and other taxes so that the frozen assets could be transferred to him.

    I guess the point is, it really depends on your status in life what investment vehicle will work best for you. If you’re passionate about stocks and have all the time in the world or study that then go for it. But as a mother and career woman, I’d best leave it to the professionals. My favorite is real estate because, although the investment is high in the beginning, in a few years, I’d be earning passive income just sitting around, thanks to the in-house leasing program of the property developer.

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