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.

Get Stuck with EDSA, End Up Like Nokia

Yes, we should never forget what history teaches us. A classmate of mine, back in high school, wrote a simple and blunt essay called "History: A Teacher". I doubt he still has a soft copy, given it was already more than 20 years ago. I'd like to quote Duterte critic Andrew James Masigan wrote this in Philippine Star --something that should remain relevant: I would never undervalue the 1987 Constitution. It dismantled the legal framework of a repressive regime and established the democratic institutions we enjoy today. For this, I am grateful. The 1987 Constitution was crafted with the best of intentions. It sought to put the Filipino first in all aspects of governance and to level the playing field amongst sectors and peoples. But it is far from perfect. It failed to consider the importance of foreign capital and technologies and the stiff competition we would have to face to obtain them. In short, its economic provisions were short-sighted . So despite the Constitut...

#SahodItaasPresyoIbaba Economics' Bad Accounting

I would like to apologize in advance to my readers. The picture I'm presenting is in Tagalog, and not all my readers speak Tagalog. I would translate the picture's text into English for convenience. It says: "Ano ang bumubuo sa mga presyo?" means "What comprises the price?" "Gastos ng materyales" means materials expense "Gastos sa kasangkapan" means depreciation expense ""Gastos sa pasahod" means salary expense "Kapitalista" means capitalist Renta is well, rent "Kayang pababain ang presyo" means "Prices can be lowered". It says that capitalists (industrialists, landlords, bankers) and elitist governments are part in the gross profit. Get rid of excise taxes (either permanently or temporarily) for the prices of goods and services. In the times of crisis, in the burden of sacrifices, we need to be watchful for capacity. Whatever savings for times of difficulty by the workers and countrymen, the...

Past Chinese School Education in the Philippines was Based on "Sǐ Jì Yìng Bèi"

Chinoys of my age (and older) may remember these textbooks. I called them as the "symbol of trauma". It was memorizing something without understanding it . One would just memorize (without understanding it) because it was typical. Not being able to memorize what was assigned? Get a bad grade? One can expect physical punishment like hitting the hand with a ruler or chili in the mouth. Chinese language teachers are stereotypically strict . The language textbooks (above) are what were used during the 1990s to the early 2000s. As I wrote it, the Sinjiang textbooks aren't effective in teaching Mandarin , in a world where Mandarin has over a billion speakers! There's a Chinese proverb that says, "死記硬背 sǐ jì yìng bèi" or "Memorize to the point of death". That's exactly what those textbooks are. Memorize to the point of death! Okay, it may sound exaggerated. However, that's how Chinese language teachers in the Philippines were made to teach the ...

Migrante International's Really Bad Economic Literacy

March 17 (which is tomorrow) seems to be an unofficial holiday for some people, right? I'm sickened that the late Flor Contemplacion has been treated like she's some national heroine (and thankfully, tomorrow isn't a holiday) even after Singapore had proven her guilt. A movie was made by Joel Lamangan called The Flor Contemplacion Story . The call for Migrante (Migrant) International has been to remember Flor even after several years. What's not too surprising was to learn that Flor's sons were all arrested for drug-related charges. Even her eldest son died while in prison. You have Migrante International wanting to end the labor export policy. However, a post by Migrante really shows how this group fails basic economics. I will not post the whole press statement but one part that made my eyes roll. >> Further opening the country’s economy to foreign ownership and control will worsen the exploitation of our people and the environment without creating a susta...

"Filipino First Policy" Has NO PLACE in the Rising Asian 21st Century

I guess nobody saw the Asian 21st Century coming, right? China was once a poor nation but look at it now. Vietnam was once a poor nation but look at it now. Singapore was once a poor nation but look at it now. The late great Lee Kuan Yew wrote his book From Third World to First . I'm afraid some people have been using it to go against the presidency of Ferdinand R. Marcos Jr. while ignoring what else Lee Kuan Yew had to say. Lee Kuan Yew described the Filipino press to be rambunctious on pages 304-305 which I agree. I'm afraid that the Filipino press may have had a hand in getting rid of any economic or political reforms that could help the Philippines. Yet, one policy has been holding back the Philippines for decades and yes, it's the Filipino First Policy . Reviewing the Filipino First Policy and why it has no place in the rising Asian 21st century I remembered how the values education subject taught Carlos P. Garcia's stupid Filipino First Policy as a Filipino value...

Has Passing Down Hatred for Singapore (Because of Flor Contemplacion) Economically Helped the Philippines?

PEH.ph It was on March 17, 1995, when Flor Contemplacion was executed in Singapore. I've noticed that I've been addressing her as the late many times, even if the late is a statement that may be ony appropriate if the person has been recently deceased within 10 years. It's about to become 30 years since Flor was hanged in Singapore. However, generational hatred would've been passed down from 1995 up to 2025. Some people are still tagging #JusticeFor Flor. These traits may be passed down from the Batang 1990s to their children in this generation. It may also be passed down from parent to child, even if the child was born in the 2000s to 2010s. Somebody born in 2000s and beyond might even say, "Papa and mama told me about Flor Contemplacion! That's why I hate Singapore!" Talk about a child born in 2004 who's probably angry with Singapore, because his parents kept telling him about how Flor was supposedly "unjustly treated" over there. Some tim...

My First Taste of Sichuan at Yang Hero IT Park

I was doing some random historical study. One of the many things I recalled from Asian history class was the Chinese Communist Party in Sichuan. It's an interesting piece of historical detail that Mao Zedong (and other Chinese communists) were avid lovers of spicy food . Yang Hero had its first branch in Gaisano Tabunok. It opened a branch in IT Park last May 25, 2023 . The menus had Chinese translations. The establishment has made me realize the importance of learning Mandarin . True, I could order their food without speaking Mandarin. However, I still feel that the increasing number of Chinese businesses left and right would mean, "You may need to learn some Mandarin now to connect with more people in the world." For a bit of background, here's what I gathered from Sun Star Cebu: Evanmarie Mendoza, social media specialist at Yang Hero, said: “The Chinese barbecue is also a must-try for foodies as it differs from the regular ones that we typically have here in the P...

Tealive's Aren Caramel (Kaong Sugar Caramel) Series

I usually tend to associate sugar with cane sugar. In this case, Tealive (read my review here ) uses a sugar known as gula aren. I did some research and found out that Gula Aren is made from the sap of the sugar palm tree. The fruit is also known as kaong in the Filipino language. Granted, the Filipino language also derives from the Malaysian and Indonesian languages--it may be derived from the Indonesian word kolang kaling . The Philippines may also be producing its own gula aren or palm sugar. Sugar palm or kaong is pretty much grown as a staple in Filipino cooking too. Here's a video from an Indonesian woman. Watching this, it's safe to assume that kaong farmers in the Philippines follow more or less the same routine. Maybe, some people may call it latik though latik is made from coconut milk and not coconut sap. Though, some Filipinos may still call palm sugar as latik. The video above also shows an Indonesian binignit with some kaong. I was shocked to learn kaong is also u...

Getting Stingy at the Cost of Fire Safety?

March is fire prevention month, right? If there are people who are too extravagant then I'd like to talk again about stingy people (read the article here ). I've tried growing up with the stingy vs. extravagant extremes. Some people become stingy even with the necessities. It's one thing to deny a child a children's party since it's a want . It's another thing to deny a child stuff they need all in the name of saving money . Even worse, some people may be more than stingy enough to ignore fire safety. A stingy person just wants to save. It's almost like the story of the Miser and His Gold or The Rich Miser . I really find these stories entertaining at the same time, irritating. The first story has the miser who hid his gold under the ground. Some people today are too distrustful of banks and investments. The second story has a rich man who even dresses in rags, denies his son's shoes, had his wife cook some cake only for him, and was so greedy he had it ...

Started to Invest in the ATRAM Global Equity Opportunity Feeder Fund

It's time to begin a new road into investing. I went from a moderate risk taker to a moderately aggressive risk taker. Of course, I need to be careful with how much money I invest or I don't invest the money that I need. I believe that one could start by investing 15% to 20% of one's income. Basically, it's money that's not needed now. Fortune Recommends gives this ideal sweet spot: Many of the experts we spoke with suggested, as a general rule, to invest a set percentage of your after-tax income. Although that percentage can vary depending on your income, savings, and debts. “ Ideally, you’ll invest somewhere around 15%–25% of your post-tax income, ” says Mark Henry, founder and CEO at Alloy Wealth Management. “If you need to start smaller and work your way up to that goal, that’s fine. The important part is that you actually start.” Some budgeting strategies account for this, such as the 50/30/20 budgeting strategy, which breaks your monthly budget into three ca...

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