Investment Description Remarks

1 First metro SEC exchange-traded fund Index fund

Traditional investments
1 Savings account, Time savings account, Money market fund
2 Pag-ibig fund (MP2)
3 Bonds (government issued bonds & corporate issued bonds)
4 Stock market
2 ways to earn from stock market
1 Capital appreciation - you buy our stock at the certain price wih the hopes of it ging up
2 Dividends - shares in the profit of the company
5 Mutual funds/ UITF/ETF
UITF - Unit investment trust fund
ETF - Exchange traded fund
* Essentially funds where a lot of people can buy shares of the fund and there are peolple who manage th
* They pool all the money that people invest, they make the decisions on where to invest.
* The lowest minimum amount is 1,000 pesos.
* For example you invest in a mutual fund that tracks the index (PSEI - Philippine stock exchange index), w
diversified across the top 30 companies of the philippines
Today
Buy Cost Total cost of investment
10 units 100 1,000
After nth months
Cost
120 1,200
Profit after nth months = 200
Mutual funds - offered by individual companies (sunlife, atram, phil equity, fami) regulated by SEC (securities & exc
* NAVPS - net asset value per share
UITF - offered by banks regulated by BSP
* NAVPU - net asset value per unit
* NAVPS & NAVPU is just the total value of the fund assets, it is calculated in a daily basis:
Total assets - Total liabilities
=
No. of shares outstanding
PROS:
1 Low money to entry (1000-5000)
2 Minimum incremental top up (500)
3 Diversification
4 Less management on your part
5 Aren't taxed
CONS:
1 You don’t have that much control
2 Fees (front entry, sales load fees, exit fees, management fees)
 3 Cut off period for placing orders (12pm or 2pm)
4 NAVPU/S is released at the end of the trading day
Different types of funds:
1 Index funds - funds that tracks an index
* Philippine stock exchang index - tracks the performance of top 30 companies in ph.
* Funds are generally passive so the fund managers who manage this fund don't really make an
they just track the performance of the stock exchange.
* Very low management fees
* First metro philippine equity exchange-traded fund - only ETF ih PH and it tracks the PSEI
* It’s traded in the stock exchange so if you want to invest in FMPEETF, you have to open an acc
stock broker and then you buy and sell shares of that fund there.
2 Equity funds
* Equity = stocks
* Equity are just ownership of a company
* Equity funds invest in individual companies
* They don’t track the index, they try to beat the index
* Actively managed funds
3 Bond funds
* Very pricey to invest (minimum of 100k)
4 Balanced funds
* Composed of equity and bond
5 Money market funds
* Very low risk investment
* Ex are cash assets, time deposits, bank deposits, gov't securities that are relatively for short te
investments the you need your money immediately.
6 Feeder funds
* Ex is ATRAM
* Investing in a separate fund
* Downside is get hit with diuble fees
How to assess your risk appetite:
1 Aggressive investor - Equity or index funds
2 Conservative investor - bond, balanced or money market funds
Where to invest in mutual funds:
1 Banks (UITF)
2 Investment companies (sunlife, philam)
3 Stock brokers (colfinancial.com, firstmetrosec.com.ph)
* For as low as 1000-5000, you can sign up an account
4 Seedbox.ph - they offer atram mutual funds
Priority to invest
1 FMETF
* Generally outperform the other index funds because of fees (a lot cheaper, 0.5% fee)
* Index fund, a passively managed fund
2 Seedbox
Alpha opportunity fund
ATR global tech feeder fund
6 Real estate
* You buy a property and then you rent out that property.
 * The value of that property appreciates and you also earning money from rent.

Alternative investments
* Riskier
* Not established as the traditional ones
1 Business
2 Cryptocurrencies

3 high interest savings account (digital banks w/ no maintaning balance)

e are peolple who manage the fund.

pine stock exchange index), when you invest 1,000, you're instantly

ulated by SEC (securities & exchnage commission)

a daily basis:
30 companies in ph.
this fund don't really make any decisions,

PH and it tracks the PSEI

that are relatively for short term

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