(Part 2 of Randell Tiongson)
Okay, this part is a little technical but i must say important. If you find it hard to understand, just google it and for sure there are thousand hits that will help you understand.
Steps in Investing
- Establish investment goals
- Evaluate investment vehicles
- Select suitable investments
- Manage portfolio
- Review portfolioFundamental & Technical Balance
- Investing is a full-time job!
- Don’t annualize few months return, consider CAGR (Compounded Annual Growth Rate) Review 1 yr, 3 yrs, 5 yrs growth.
- Be aware of marking to market
- Assess risk/return. If you’re young it’s okay to go high risk-high returns and if you’re old then go to low-risk-low return.
- Remember SET: Size of Funds – Expertised – Time
- Before you invest, investigate!
- Review performance
We can start investing now. Most of us don’t have 500 million to start investing right? If you’re that rich, you can start investing through Private Banking, but if you’re not you can invest through Pooled Funds through mutual funds and variable life insurance. I personally research on this, you can visit www.icap.com.ph for list of companies who offers UITF or www.uitf.ph for the list of all uitf and its performance. I just started investing last month, and I started with BDO EIP, because my sister works with BDO and she started last year and we both saw good returns for 8 months, and i was privilege to attend BDO investment training (they offer this for free just go to http://trust.bdo.com.ph for seminar schedule). I appreciate this product since it allows me to start small, to invest regularly and diversify!
The Bible reminds us to invest and diversify- Ecclesiastes 11:But divide your investments among many places,for you do not know what risks might lie ahead.”