I’ve been assessing my investments recently and saw that some low-risk investments which I placed several years ago have already grown significantly over the past few years.
Consequently, I thought that perhaps, it’s time to rebalance my portfolio and diversify more.
Incidentally, I’ve been studying the performance of BDO’s Unit Investment Trust Funds for several weeks now and personally, I think that some of their products are a good fit for my investment objectives.
And that is why last week, I went to the BDO branch near our home and opened an Investment Account with them.
BDO was one of the sponsors of the Steps To Financial Peace Seminar I attended last month and it was there that I learned about Banco De Oro’s Easy Investment Plan or EIP.
The product works much like Citiseconline’s EIP for the stock market where you invest a fixed amount at regular periods over a good length of time.
Everything works automatically, because upon enrollment, BDO will just debit your decided amount from your BDO deposit account continuously until you give a stop order.
This allows you to conveniently practice Cost Averaging in your investment. It’s also affordable because the minimum investment is only P1,000 per month.
For the BDO EIP, you have three products where you can invest: the Peso Fixed Income Fund (low to moderate risk), the Peso Balanced Fund (moderate to high risk) and the Peso Equity Fund (high risk).
Interestingly, almost exactly a year ago, I wrote a post analyzing BDO’s Peso Balanced Fund and I said that if the NAV goes above 2,627.61, then it’s most likely to go up more. A year after, it’s now at 2,799.13 (as of Sept. 9, 2011).
This means if I invested P10,000 last year when the NAV reached 2,627.61, then my money would have been worth around P10,652.76 today. No savings account, nor time deposit interest, can earn you that much from just P10,000 – that’s around 6.52% increase in your money.
While it’s important to note that historical performance is not a guarantee of future fund performance, the risk becomes manageable if you have a long investment horizon.
Since I could afford at least two years without touching this new investment, I decided to invest in the Peso Balanced Fund under BDO’s EIP program with a P5,000 per month investment for 24 months. Now I’m excited to see what would happen with my money after 2 years.
If you do have some savings you can afford to invest for at least a year or two, then maybe you can join me in this investment?
But if you are you still in the process of learning (and saving), then it’s really not a problem. Investing in knowledge does come first and it’s actually more important.
If so, then perhaps maybe you’d like to read this article next: Mutual Funds and Unit Investment Trust Funds, What’s the Difference?
I guess that’s it for now. Please don’t forget to subscribe to Ready To Be Rich to receive more investing information like this in the future.
Here’s a follow-up post on this: An Update on My BDO EIP Peso Balanced Fund Investment
Disclaimer: The information above should not be taken as financial advise from an expert. This article is merely for educational purposes. Please consult a wealth manager or a certified financial planner before making any major investment decision.