Hi! Thank you for dropping by.
If you have time and interested about investing in the stock market or
learn more about personal finance, i suggest you start here
Also as a further learning, you may want to read my previous posts on
mutual funds.
Now, about the BDO Easy Investment Plan
The BDO Easy Investment Plan (EIP)
The BDO Easy
Investment Plan is a "saving and investment" program whose objective
is for an individual investor to attain his financial goals through the twin
habits of regularly saving and investing.
(Keywords: regular
savings and investing)
Under this arrangement,
an investor enrolls his savings,checking or payroll account in a BDO automatic
debit facility wherein a fixed amount/s (with a minimum of Php1,000.00) per
month is/are deducted for the purpose of immediately investing in selected BDO
UITFs. Every time the market value of his UITF investments reaches the minimum
amount of Php 10,000.00 investment required for the selected UITFs, he is
issued a Confirmation of Participation (COP) which converts his EIP
contributions into regular UITF investments. As long as he is enrolled in the
program, the process of saving, investing and issuance of COP continues
automatically on the selected contribution dates.
(Before proceeding, would you consider investing in the Philippine Stock
Market? It is similar with BDO EIP but you have more control on what companies
to invest in. The concept is similar which is called peso cost
averaging)
Unit Investment
Trust Funds
Unit Investment Trust Funds (UITFs) are
open-ended pooled trust funds made available to investors through units of
participation which are valued on a marked-to-market basis. UITFs empower the
retail investor since they require relatively small minimum participation
amounts yet provide equal access to higher earning investments not readily
available to small investors because of the sizeable lots required. BDO's wide
selection of UITFs allows clients to choose a fund suitable for their
particular stage in life, investment objectives, time horizon and risk profile. (read
more)
For an enrollee in
the program, the EIP has become a facility to help him to regularly set aside
funds for investment to meet multi-purpose needs in the future, such as funding
a wedding, children's education, construction of a home or retirement, etc. It
also gives him an affordable access to the services of the BDO professional
investment managers who keep constant watch over the BDO UITFs.
The EIP espouses the
investment precept that the sooner an individual investor begins investing, the
more time his money can grow. Investing even in small amounts when done on a
regular basis and early on, can produce considerable rewards over the long
term. Through the EIP, he can experience the power of "compound
interest" which refers to interest earned on principal plus interest that
was earned earlier.
Another advantage of
the EIP is that it enables an individual
investor to ride out market movements through "cost averaging."
Investing fixed amounts of contributions at regular intervals over a long
period of time will build his portfolio one step at a time, regardless of
market conditions, effectively averaging costs over time. In short, through the
EIP, he will be able to invest without worrying about monitoring market
movements and timing his investments. This strategy also mitigates the risks
associated with investing lump sums at a wrong time and bearing the consequence
of the market losing value shortly after making the investment.
Currently, selected
BDO UITFs, particularly those which are best for investors with a longer term
investment horizon, are available for the EIP.
Here's
how to join the EIP, in just three easy steps:
1. Fill out the EIP
Application Form and enroll your BDO Savings/Checking/Payroll Account in the
EIP at any BDO branch.
2. Decide on the
following details of your contribution:
•
Amount: Minimum of Php1,000.00 per contribution
•
Frequency and schedule: Once a month (5th, 10th, 15th, 20th, 25th or the
30th)
or Twice a month (every 5th & 20th, 10th and 25th, or 15th & 30th)
or Twice a month (every 5th & 20th, 10th and 25th, or 15th & 30th)
3. Choose what type
of UITF is best for you: BDO Fixed Income Fund, BDO Peso Balanced Fund or the
BDO Equity Fund
Rush to your nearest
BDO branch today!
For inquiries, please
call Trust and Investments Group at 840-7000 locals 4265, 4244, 4255 and 7032
or send an e-mail to investments@bdo.com.ph.
