Why I Feel Investing Money in UITFs Might Be a Good Idea While Studying DIY Stock Trading

-

It's said anybody can do stock trading. However, the idea can be very suicidal if one decide to rush into stocks without studying how to effectively do it. Some people can even recklessly borrow tons of money and end up harming themselves when the trade was at a loss. They might've borrowed the money from a loan shark for all we know. I'm trying to study the stock trade though there's a good option. AXA Chinese Tycoon is a managed fund. Now, there's also Unit Investment Trust Fund (UITF) which could be a good alternative while one is learning to do stocks. Stocks can be learned but remember--no investment is ever a walk in the park. Stocks need some time to learn. 

I haven't started direct stock trading it. Meanwhile, I'm aware that funds like the AXA Chinese Tycoon or the UITFs are powered by stocks. The pandemic has prevented me from doing direct translations. Instead, I decided to use GCash and ATRAM (linked to GCash) to start another trading portfolio. Since I already have bonds--I decided to invest some excesses right into some accounts. Before that, I'd like to share the differences based on Seedbox Philippines to find out the two baskets to put money into:

Pretty much, these are two alternatives for those who feel that they don't have the time, expertise, or the courage to do Do-It-Yourself (DIY) stock trading. The UITF (as its name suggests) is based on Net Asset Value Per Unit (NAVPU) while mutual funds would be about shares. The AXA Chinese Tycoon Fund is based on units from blue-chip Filipino-Chinese owned company stocks to which the value goes up and down according to the market performance. After I decided to get GCash to be able to pay people who don't use third-party deliveries - I decided to get into GInvest. I didn't know how to understand it yet so I placed a small amount to see how it goes. What I foolishly did was not thinking that if the performance is low--the NAVPU is low. A low NAVPU means that I'll be able to buy more units than when it's high. 

Let's take the ATRAM Philippine Equity Smart Index Fund. This fund is focused on the 30 companies that comprise the Philippine Stock Index. You can start for as low as PHP 50.00. However, I suggest saving up until you get a PHP 1,000.00 or even save up to PHP 5,000.00 and see how much the NAVPU is. It would be wise to see how much the NAVPU is and see how many units you'd buy. For example. investing PHP 1,000.00 when the NAVPU is 108 will mean you only get 9.2593 shares while investing it when the NAVPU is 101.21 means you get 9.88 shares meaning a few more shares than usual. Though, I might prefer to do value averaging because buying more units at a discount may mean getting more when the value rises up. It might be wise to invest PHP 2,000.00 or more when the market is down and only PHP 1,000.00 when the market is up. Other funds would involve foreign companies which can also be a good thing.

Right now, UITF costs are rather low as I've checked on GInvest. The stock market at an all-time low means stock prices are low. UITF portfolios are dependent on stocks. It would mean that if I bought more now--I'll be able to take advantage of future increases later. Going for PHP 3,000.02 per month may not give me what I want. Maybe, I pledge to at least invest a certain amount per month. However, it might be wise not to buy some units if the NAVPU is too high. Instead, it might be best to sell it or just let it grow. Though, one might consider the UITF if the price is so high then save up some money should the market go low again. Some people are still willing to buy at a higher price such as those who choose to buy high to sell higher or buyers who do money cost averaging. Some people invest the same amount per month regardless. Others choose to put more than usual when the market is low and put the default amount when the market is high.  

A discipline I need to develop is just to check the investments monthly or quarterly. What would be important to take note of is this--invest only what I don't need right now. I need to keep learning to save as well. I shouldn't invest the money needed to pay bills. Instead, I should invest whatever small amount is there first then make it a habit. That's what I've been taught but need to learn some more. I think investing every quarter would mean I may have some more money to spare. It would mean looking at the horizon if it's time to buy or time to sell. As said, I'm not selling any UITFs right now (though I did sell some older ones to test my skill). Now, it might be time to focus on growing the petty cash investments on GInvest into bigger cash investments. 

Popular posts from this blog

The "Kahit Konting Awa" Attitude Wouldn't Help Alleviate Anyone from Poverty

-
Image
  As the countdown to Christmas continues--it's easy to expect the toxic Filipino trait that I'll dub as "Kahit Konting Awa". The literal meaning is "Just a Little Pity". I named it after that song by Nora Aunor, the theme song of The Flor Contemplacion Story . I wasn't a bit surprised when the hit movie was uploaded on VIVA Films' YouTube page last 2013 (read here ). Back on the topic, I noticed it's easy for people to desire to reconcile because it's the Christmas season. The Philippines has the longest Christmas season. However, people love to do last-minute Christmas shopping presumably due to their poor budgetary habits. Ever heard of the one-day paycheck pandemic in the Philippines? It's a common abusive trait in the Philippines to have that "Kahit Konting Awa" attitude. There's the problem of "Utang (debt) is life." It's no surprise that financial literacy is that low in the Philippines. A not fun fact a
Read more

The Philippines 60-40 Equity Scheme Doesn't Prohibit FDIs But It's Still VERY DISCOURAGING for International Business

-
Image
First and foremost, I'd like to tell people that I don't believe that the Marcos Years were the "golden years". I still agree with economist Cielo Magno that land ownership isn't a factor, since some countries without equity restrictions, don't allow foreigners to buy land. In contrast, inflation and the like were rampant during that time. However, we need to realize that any gains after EDSA 1986 weren't realized. As I was looking at Facebook, a page called Punch the Lies by Atty. Mike Navallo stated this:  FACT: The 1987 Constitution does not prohibit entry of global investors into PH. What it regulates is foreign investment in areas deemed critical such as public utilities; exploration, devt and use of natural resources; and certain investments as determined by Congress. (Art XII)   Public utilities (water, electricity, petroleum distribution, seaports, PUVs) are considered vital to socio-economic devt that's why they're subject to foreign owner
Read more

The Irony the Philippines Starts the Christmas Season in September BUT Many Filipinos Love Last-Minute Christmas Shopping

-
Image
  Uproxx As Christmas is just around the corner--I feel more stress coming in! It doesn't help when people try to use the late Andy Williams' "It's the Most Wonderful Time of the Year" to try and skip the problem. It's already known that most Filipinos love to start Christmas in September . However, the irony is that Filipinos start Christmas early but do their Christmas shopping late. If they began the Christmas Season early, shouldn't they think about what to do before December strikes?  Two years ago, I wrote a post discussing last-minute Christmas shopping . Many Filipinos tend to do last-minute Christmas shopping. They had all of November (when the Christmas sale usually begins) but why do the Christmas shopping in December ? One of the things I blame is the one-day paycheck lifestyle (see here ). It can be observed that many Filipinos never learn to prioritize more important things . One can get their stars when they see their paychecks. However, the
Read more

If You Want to Make the Philippines Better, Study... HARDER?

-
Image
I grew up complaining and complaining about stuff. I always looked at the Philippines as a hopeless case. I hated studying the Tagalog subject--which was mandatory by the DepEd. I was told, "Look lazy bum! If you want to make the Philippines a better place--study harder!" In college, I began to apply myself more seriously even if I didn't graduate summa cum laude. I felt a sense of achievement when I won a commerce award for making an outstanding difference. What I never thought was that during the practicum--it was working smart and not working hard. Sure, hard work is there but smart work allows more hard work to be done at a better pace. Not long after, I took my MBA course but it was also at that time, I was scammed . I discovered I wasn't alone in being scammed--many MBA students were scammed during the same time I was scammed! However, what I discovered was the problem of saying, "Your grades will determine your future!" It was typical in Philippine sc
Read more

Hussam Middle Eastern Restaurant: A Trip Into Authentic Syrian Cuisine At Ayala Center Cebu

-
Image
  The last time I ate at a Hussam Middle Eastern Restaurant branch last year, I couldn't give a good assessment. I haven't been to Hussam's main branch at Il Corso, so I didn't formally meet its owner, Hussam Alfakeh Alkourdi. The branch I ate was in Ayala Center Cebu instead. This is the interior of the restaurant. Ayala Center Cebu has Persian Palate on the third floor, above Timezone. Hussam is near one of the entrances of Ayala Center Cebu--near a Chinese restaurant. Persian Palate was my entry point to Middle Eastern cuisine.  Hussam serves authentic Syrian food. There are dishes similar to those from the Persian Palate. They serve Syrian bread, different from my favorite Pita bread served at Shawarma Gourmet (read my review here ), a Lebanese restaurant. So far, I tried their mixed meat platter with Syrian bread. My second dish there was actually baked Arabic rice with grilled beef kebab. I love their tomato sauce (which I mistook for ginger sauce) and garlic sauc
Read more

The Philippines will NEVER Get Richer by Blaming Its Richer Asian Neighbors

-
Image
iStock It would be nice to talk about the typical blame game in the Philippines. I could rememeber that, as a child and a teenager, I had this habit of blaming people I dislike that I failed an exam. The reasons are mostly imagined. What I remembered in my later college years was when I met a couple of super irresponsible students. They had this attitude to say something like, "My parents don't care if it'll take me 20 years to finish my bachelor's degree." Some people even say something like, "It's the fault of the rich that we are poor." It was a backfire when I told such people, "Isn't it any wonder why your finances are down? It's because your parents don't even value the money when they don't care if it'll take up to 20 years to finish college!"  Understanding the blame game and why it feels so good Psychology Today presents this on why some people will always blame others . These findings can help understand the st
Read more

Can Diehard 1987 Constitution Defenders Prove Their Claims to the Lee Kuan Yew School of Public Policy?

-
Image
It's not enough to say something. The question is, "Where's the substance or the empirical evidence?" When I start quoting from the late Lee Kuan Yew, these diehard 1987 Constitution of the Philippines defenders start diverting the topic by pointing out my errors to spite me than to correct me. They would ask if I know the Deming Theory of Management which talks about quality management in the company culture. Okay, that was something worth asking but as said, can these people really understand the problem of the Philippines has been more systemic (that is, within the system ) than just the people running the system? What allowed the legislative to be filled with people who know-nothing anyway? That's why I didn't want to vote for Senator Robin Padilla (who ironically understands the need for reforms, read here ). Unfortunately, so many Ad Hominem attacks have been done.  A past article I wrote was Should you  listen to either Davide Jr. or Kishore Mahbubani
Read more

My Experience With Delicious ITealicious' Filling in the Milk Tea Demand in Cebu City

-
Image
It's been some time since I did a food review, right? Back then, I remembered how my first love with Taiwanese milk tea was Chatime. Though. when I went to Chatime--I usually ordered fruit tea since I was trying to lose weight. I ended up trying Tiger Sugar which ordering something without sugar doesn't make sense. So, another milk tea I decided to try (via delivery, haven't gone to the branches yet since the pandemic) is ITealicious. ITealicious is founded by Taiwan-born Yuwen Chiu (who's also a Chinese teacher in Cebu Eastern College). It was founded in 2018--the time when I was so devoted to weight loss that I didn't try it until I lost some pounds. In trying to renew my driver's license--I discovered I went from 85 pounds to 79 pounds since I've been doing a lot of cardiovascular exercises during the pandemic. I decided to give ITealicious a shot after I had tasted the food at Jolly Bubble. Jolly Bubble is pretty much the ideal place to get a delicious m
Read more

It'd Be Stupid to Continue Using Obsolete Chinese Language Textbooks to Teach Mandarin Chinese

-
Image
I remember writing about how to make Mandarin Chinese more accessible in the Philippines . I remembered the day when I ended up not liking school not because I didn't want to learn. I was eager to learn. Science and history are interesting subjects. However, mathematics is taught in such a way that it's almost irrelevant. "You just need to study it, it's required by the DepEd and you can't graduate without it!" was the only reason. You're not allowed to think, just be a robot, and then parents get mad about why their children have almost no initiative and need to be programmed like robots. It's because the school system kills initiative and nobody does a robot's job better than a robot .  Bahay Tsinoy, museum of Chinese life in the Philippines I just found this photo shared on Facebook. It was the picture of childhood trauma that I'd like to talk about. The standard Chinese textbook. At first, I was excited to learn Chinese but that excitement
Read more

Red Lizard: Wrestling With Your Taste Buds With Delicious Mexican Food

-
Image
During the late 2010s, I remember one of the greatest things I got into was Mexican food. I remembered a delicious Mexican restaurant opened in I.T. Park Cebu but it was later closed down. From what I heard, the owner closed it down out of grief and I don't blame the person for it. Years later, there was El Taquito at SSY which I also enjoyed. However, El Taquito is now located on Governor M. Roa Avenue in Cebu City. I would like to talk about the Red Lizard--Taqueria which has branches in SM Cyberzone, IT Park (where I usually get my deliveries), and Ayala Center Cebu.  I had quite a wild imagination thinking the restaurant was founded by a retired wrestler. I thought Red Lizard was a real luchador or Mexican wrestler. On the contrary, the character of Red Lizard is as fictitious as Jollibee's mascot, an anthropomorphic bee named Jollibee. Further research showed that Red Lizard belongs to the Abaca Group of Companies founded by Jason Hyatt and his Chinese wife Anna (whom he m
Read more