The Investment Thread

Discussion in 'General OT' started by lerwinchristan, Mar 23, 2012.

  1. lerwinchristan

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    Hi, im looking for something to invest my money in, besides stocks, anyone knows what others can i invest? any advise?

    Maybe better if high risk and high reward?

    thanks
     
  2. greta87

    greta87 PhilMUG Addict Member

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    Re: Help need advise on investing money

    if it's ok with you, what amount do you have in mind?
     
  3. wildcard

    wildcard Active Member

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  4. lsalapare

    lsalapare Well-Known Member

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    Re: Help need advise on investing money

    Invest it on BDO's special deposit account. Up to date, their interest rate is 3.65% compared to last year's 4.1% but the minimum amount to deposit is 1M.. :)
     
  5. mystavros

    mystavros Member

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    Help need advise on investing money

    Bpi has a minimum of 100k for their SDA, rate that i got is 3.54 last December.
     
  6. Salaryman Ryan

    Salaryman Ryan PhilMUG Addict Member

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    Re: Help need advise on investing money

    If you want high risk and high reward investments that are not stocks, then I suggest doing some research on precious metals such as Gold and Silver. I suggest allocating 10% to 20% of your portfolio in gold or silver.

    Here is a very good book I strongly suggest you read if you want to go into precious metals:

    http://www.amazon.com/Rich-Dads-Adv...0998/ref=sr_1_1?ie=UTF8&qid=1332629482&sr=8-1

    Here is also a very long but comprehensive video on gold and silver (must watch):

    http://www.youtube.com/watch?v=E5VNAEmmBQM

    Good luck!
     
    #6 Salaryman Ryan, Mar 25, 2012
    Last edited: Mar 25, 2012
  7. dutch_boy

    dutch_boy Member

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    Re: Help need advise on investing money

    Time deposit rates are a joke so stay away from those at all cost. I strongly suggest mutual funds (bond, equity, or balanced). Bond funds if you're conservative, equity if you are aggressive, Balanced fund if you want to be in between.

    Deposit accounts are hardly investments. The interest you earn is just eaten up by inflation. To give you an example, last year, the inflation rate is about 3-4% so if you earned 3.65% on your 1M deposit, the net spending power of your money is less. Yes, number-wise, your money will become P1,036,500.00 after one year but because of inflation, it's spending power is less. The key is always look for interest rates above the inflation rate.
     
  8. Blues009

    Blues009 Member

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    Re: Help need advise on investing money

    Umm...buy Apple stocks?ooops missed the question sorry..maybe put up an apple stores in local malls ^_^
     
  9. pinoyslinger

    pinoyslinger Active Member

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    Re: Help need advise on investing money

    I'm thinking of palm tree oil and rubber tree, a friend of mine in mindanao told me the demand is getting bigger. I inherited some farmland and the tenants are giving me headaches more than what i expect from them.

    i really don't know the real demand for these products, just a suggestion if you are in the same situation :)
     
  10. ck_chua

    ck_chua Member

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    Re: Help need advise on investing money

    Stay away of from any sort of special deposit accounts. The return on these accounts WILL HARDLY outperform inflation (Real Rate of Return = Market Interest Rate - Inflation). Which means your purchasing power year on year will become less and less if you keep your funds invested in these instruments. I suggest go for mutual funds or UITFs that combine stocks and bonds depending on your risk appetite. Be wary though that these investment instruments are not capital protected unlike SDAs.

    Again, the mantra of investing is the higher the risk, the higher the reward.

    Just checked. PH inflation for 2011 was 4.8%. So if you're earning 3+% in a SDA, you're basically in the red when it comes to purchasing power.
     
    #10 ck_chua, Mar 25, 2012
    Last edited: Mar 25, 2012
  11. jeyps11_c

    jeyps11_c Member

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    Re: Help need advise on investing money

    I think there are 2 basic ways to invest: put up your own business or or the "market".

    Since you are asking for something outside stocks your own business is another way to go. There is a high risk in that path since you have to identify your product and hope that it "clicks" or pans out. Madami na nag open ng business and after just a short time they closed. Putting up a business means you need to have a lot of time to put it up, manage it and maintain it. If you don't have time don't even think about putting up your own business. Kahit franchise pa yan it won't work.

    Your next option is the "market". Unfortunately stocks will be part of the market. But there are other options that you can take where you don't have to worry about managing your stocks. Just like what dutch_boy said MFs and UITFs are viable options. Equity is a hgh risk high reward type of "fund". The bank manages your investment and they usually invest it in blue chip companies. Bond Funds are invested in very stable government bonds that requires a very long term lock to realize gains. And Balanced Funds provides the stability of Bond Funds and aggressiveness of Equity Funds.

    Also check entrepreneur.com.ph for other options.
     
  12. bender

    bender Member

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    Re: Help need advise on investing money

    I think we have to highlight that high risk investments can also eat up your capital which is worse than not realizing the best returns for your investment.

    High risk investments also require more information gathering and monitoring than no brain/safe investments.

    What's really important is to actually monitor some investment opportunities for a period of time so that you can be familiar with its trending and movements.
    Don't invest in anything you don't understand.
     
  13. Salaryman Ryan

    Salaryman Ryan PhilMUG Addict Member

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    Re: Help need advise on investing money

    I agree with ck_chua and Dutch Boy when it comes to interest rates vs inflation. When investing always be weary on the constant devaluation of our currency. One mistake of new investors and most of the public is to think that Php 100 today will be worth a Php 100 in the future in purchasing power.

    Remember the time when our grandparents used to say that 1 pesos would buy you lunch and a ton of other stuff? In 2012, 1 pesos can't even buy you a piece of candy. Many economists argue that it is not the prices of commodities that are increasing but rather our fiat currency losing its value.

    When it comes to inflation, one of the best indicator is to simply check the rise and fall of (usually rise) prices of everyday goods and commodities. Food, gas, etc. It is my own humble opinion that the official inflation figures 3 to 5% is too conservative and does not give a completely accurate representation of market realities if median prices of everyday necessities rise annually by 10%.
     
  14. martinthelion

    martinthelion Member

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    Re: Help need advise on investing money

    I wanted to go into the stock trading as I have investment money to spare, but I don't know how to go about it. Is there any go-to guy for this? I have a lot of time in my hands during the day, so I can do the trading on the daily basis, but I was informed that it can't be done, is this true? I have a long way to go on this, but if someone could point me to the right direction on who to talk to, who to transact with, etc. That would be good!
     
  15. g5i

    g5i Member

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    Re: Help need advise on investing money

    there are corporate bonds available such as ayala land, san miguel brewery, etc. 7 to 10 year holding period, with returns of between 4-5% per annum. i think its P1m minimum. should be pretty safe given the reputation of these companies. consult your bank for details.
     
  16. John H

    John H Member

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    Re: Help need advise on investing money

    If you have worked in the financial sector for several years then yes, you can make money off stock trading. One of my sons works as a stock trader in Wall Street and I assure you it is extremely hard work. You need to read tons of articles about the economy and the companies you are following. You need to have a deep knowledge of the financial history of your target market to learn the trends. You need to know how to read the balance sheets of the company you plan to pick. You need to know a lot of technical knowledge such as chart reading and analysing.

    However, if you simply plan to dabble in it, I suggest playing only with a small amount because there is no way you will make a living off this unless you accumulate a ton of experience and expertise in stock trading. The pop culture image of the stock market trader making a ton off trading stocks effortlessly is an illusion.
     
  17. raypin

    raypin PhilMUG Addict Member

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    Re: Help need advise on investing money

    Mmmm....or you could just buy "forever stocks" - companies with proven track records of profitability. You can't lose. I am talking of long term timeframe - 10, 15 years or even longer. You only cash in when you've reached retirement age. By that time, your investment in the equity market would be remarkably large and sufficient to support your golden years.
     
  18. Salaryman Ryan

    Salaryman Ryan PhilMUG Addict Member

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    Re: Help need advise on investing money

    I agree with Uncle John. His son is my cousin and I saw him work and he works hard and read tons of material about the economy. If you wish to do trading, which means earning capital gains by buying low then selling high on short term trades - its extremely difficult. You can get lucky once in a while but making a consistent profit will require years of experience, skill, and knowledge. Its not something that you can just pick up and do as a sideline.

    Guys, just a reminder, the OT specifically asked for high risk high yield non-stock investments. My guess is he has already invested enough in stocks and want to diversify his portfolio.
     
  19. Zoey

    Zoey Member

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    Re: Help need advise on investing money

    Believe it or not, the safest but high yield investment for me right now are time deposits in small banks with high interest rates. Banco San Juan gives about 5% annually for their time deposits. However the risk here is that these small banks tend to close but that is alright because as long as you don't invest more then 500,000 pesos, PDIC will cover you.

    Had some rural banks closed on me but I was still able to get my money back with interest.
     
  20. Seven Leaves

    Seven Leaves Member

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    Re: Help need advise on investing money

    I don't get it, what is the point of a 5% a year investment if inflation will just nullify the gains? :(
     

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