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Why I'm Investing in Global Consumer Trends Feeder Fund


Knowing your investment is very important. I made the mistake of putting some money into the funds to test my skills. It figures out that I really needed to know how it'd work. Now, I decided to invest in the Global Consumer Trends Feeder Fund. Here's some data from April 2022 to May 2022 to see where that minimum of PHP 1,000.00 gets spent on. 

April 2022

May 2022

Why would I want to invest in foreign consumer stocks? Here's how Investopedia describes consumer stocks: 

The term consumer staples refers to a set of essential products used by consumers. This category includes things like foods and beverages, household goods, and hygiene products as well as alcohol and tobacco. These goods are those products that people are unable—or unwilling—to cut out of their budgets regardless of their financial situation.

Consumer staples are considered to be non-cyclical, meaning that they are always in demand, year-round, no matter how well the economy is—or is not—performing. As such, consumer staples are impervious to business cycles. Also, people tend to demand consumer staples at a relatively constant level, regardless of their price.

Basically, the Philippine Equity Smart Index Fund (read here) and other related funds such as the AXA Chinese Tycoon Fund (read here) are focused on consumers. I kind of want to think about consumer stocks because these things will always be in demand or not. Sure, the arcade closed during the COVID-19 pandemic's peak. However, delivery services and the like still had to move on. Some people will still (eventually) check in hotels but within a limit. Internet and direct marketing retail, as well as entertainment, continued to develop during the pandemic. Just think about it that you may have done a lot of online selling and watching digital media during the ECQ days. Meanwhile, some investments in food companies abroad might be beneficial too. 

I feel restaurants will still be strong. Sure, there's limited dining in but delivery services are there. I wonder if Foodpanda and Grab are part of its portfolio? Hopefully, it's because both delivery have been very helpful to Filipino businesses (read here). I think getting a small fraction of a share of McDonald's or Kentucky Fried Chicken (which I think aren't part of the top picks for now) might still be helpful. 

What I advise is to place PHP 1,000.00 per month for twelve months. Though, people with less money (for now) may consider investing in either this fund, the Global Technology Feeder Fund, or the Philippine Equity Smart Index Fund for the first choice. It would be wise to lay aside PHP 1,000.00 for a start, try to get some more savings after expenses are paid, and then simply letting it grow. I think this is a good starting point. Though, I still recommend starting with the Philippine Equity Smart Index Fund which I believe is mostly consumer stocks oriented.

My aim right now is to put at least PHP 8,000 before 2022 ends as well as the Global Technology Feeder Fund. Granted, GCash partnered with ATRAM and Seedbox. In short, they know what they're doing. I feel that, like the technology stocks I'm indirectly invested in, the Global Consumer Trends Feeder Fund will grow over time. What I need is more patience because nobody gets legitimately rich overnight from investing. 

References

Websites

"Consumer Staples" by James Chen, reviewed by Gordon Scott (Updated: May 1, 2021)
https://www.investopedia.com/terms/c/consumerstaples.asp

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