I've been busy thus was not able to post new articles to this blog.
If you happen to read this, then thank you. Most of the time i wonder and I ask myself "Is anyone out there reading my blog beside me, my wife and my brothers)". Truth be told, this blog is aimed at employees like me. Someone who aims to save, earn more and learn. Plus, my entries serves as a reminder to myself.
Like a written contract, this blog serves as a reminder to my forgetful mind; about what i said i'll do, what i have been doing and what i will do next to make sure i reach what i have intended to do.
Without a topic in my mind, i decided to give you an update on my mutual fund.
If you remember, I started putting in a regular amount in a mutual fund. To recap for those who haven't read my previous posts, investing in mutual fund is similar to buying a public company's stock. You own a certain number of shares based on the amount of your investment. Share price fluctuates depending on the performance of the fund. Performance of the funds depends on the performance of the companies that comprises on the fund. It is becoming an co owner of publicly traded companies indirectly by owning shares of mutual funds.
I decided to invest following the belief that stock prices increase through time supported by a good company performance. I also invest in the stock market but i don't really have the time and expertise of mutual fund managers so i have decided to try mutual fund.
The table above shows that I've put in P5,000 every month to purchase shares of mutual fund. You'll notice that my P5,000 purchased fluctuating number of shares. That's because share price of mutual fund fluctuates. My P5,000 bought more shares when prices are down and less shares when prices are up. It is worth noting that from Jan - June, the general price trend is upward. As of this post, the share price (called Net Asset Value per share or NAVPS) is P2.8319 per share. Assuming that today I no longer want to invest, the company who manages the mutual fund will pay me P2.8319 per share (excluding charges). Overall, my money earned 8.5%. Not much but definitely way above what bank deposits offer.
What's Next
I plan to continue putting in P5,000 plus I really need to find another source of income to increase that my monthly investment. If you look at it, my total investment is just enough to buy me an ipad. Not much and definitely low to sustain a living. But it is a start. If you are interested to learn and invest too, comment on this post or follow me on twitter (@accabiao). I don't earn from sharing what I know but more than willing to help.
