Showing posts with label financial tips. Show all posts
Showing posts with label financial tips. Show all posts

Investing in Mutual Fund

Posted by oink2 Sunday, November 27, 2011 0 comments

Money is precious. As they say, it doesn’t grow on trees. But you can make it grow, even in this time of economic hardship. How? Simple. By investing wisely.
There are indeed many ways to invest in today’s markets, but none is growing faster in popularity than mutual funds. Although this investment instrument has only been recently introduced in the country, mutual funds are prevalent in European, North American and even some Asian countries. But what is a mutual fund anyway?

A mutual fund is a professionally-managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. After realizing capital gains or losses, the investment proceeds are then passed along to the individual investors annually, through the fund manager, also known as the portfolio manager. The value of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently outstanding.
Know your investment goals.
It is important to choose investments that match your goals. Ask yourself the following questions: Why do you want to invest? How much risk are you willing to take? How long is your investment time horizon? Your answers to these questions will help determine the suitable investment for you.
Be realistic.
Set definite and achievable savings and investment targets. Don’t invest money you don’t have. It does not help to set goals that are too ambitious or require a level of savings beyond your present financial state. Decide what you can realistically set aside for investment and work from there.
Protect yourself against inflation.
Ten thousand pesos can buy a lot more in the 1970s compared to what it can buy today. Inflation has eroded our buying power and it will continue to do so unless we invest wisely. The first step is to include inflation protection in your investment goals.
Diversify.
Like the famous saying, “Don’t put your eggs in one basket,” in investing you shouldn’t put all your money in one place, stock or business. Spreading your investment across different assets can help trim your risks. The prices of different assets do not always go in the same direction and even if they do the amount of change varies.
Practice peso cost averaging.
Make investment purchases on a regular basis so as to average your cost over time. For instance, you decide to invest P5,000 in mutual funds every month. On the first month, the price of the mutual fund share is P5, so you buy 1,000 shares. If the price of the share doubles to P10 the following month, you buy another 500 shares. Your average cost is therefore P7.50 per share. Since we don’t have perfect foresight, peso cost averaging allows us to improve our share cost in the face of fluctuating share price.
Buy low, sell high.
This is easier said than done. There is a common misconception that you should buy stocks when the market is good, and sell when it is bad. Without an investment plan, you would easily follow the crowd – selling when prices are already falling and buying when prices are already rising. To avoid this mistake, take time out to create your own investment plan.
Invest for the long-term.
The value of securities tends to rise and fall over the short term over time. Your ability to withstand volatility, especially on the downside, will generally result in greater returns over time. A long investment time horizon will give you the flexibility to include investments that may provide high returns but will require taking additional risks.
Balance risk and reward.
Every investment has a certain degree of risk, and its return is proportionate to the level of risk of the investment: the lower the risk, the lower the return; the higher the risk, the higher the return. Investors need to understand the levels of risk or volatility associated with their investments.
Choose a fund manager that offers you different investment options.
Every individual has his/her own investment needs. Investment needs will also change over time. What works for a 30-year-old may not work for a 50-year-old.
For more information, contact:
Sun Life Financial
12th Floor, The Enterprise Centre Tower 2
6766 Ayala Avenue cor. Paseo de Roxas, Makati City
Phone: (02) 886-6188
Call Centre: (02) 849-9888
Web site: www.sunlife.com.ph
source: mixph.com
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A reloadable prepaid card for online shopping

Posted by oink2 Thursday, November 17, 2011 0 comments

For those without a credit card but wanting to shop online, fret no more.  There is the new BPI My ePrepaid card—a no-hassle, no-approval-required, reloadable prepaid card that allows you to conveniently buy whatever you want from MasterCard-affiliated online shopping sites without having to worry about submitting documents or maintaining a balance.
“Now, everyone can buy airline tickets, concert passes, gadgets, fashion must-haves, and coupon deals easily and in an instant with the BPI eCredit and My ePrepaid Cards,” shares Aileen Lamasuta, Vice President and BPI Prepaid Cards Business Head.

Filipino habits are changing as they spend longer hours browsing the Internet at home than going out to shop and dine during their spare time. This was shared by the 2011 Net Index Study released by Yahoo! Philippines and Nielsen Media, which revealed that Internet time at home takes about an average of 10.4 hours of most Filipinos’ time in a week—a huge jump from the 4.8 hours that Pinoys allot for web surfing back in 2009.

The same study also noted that 80 percent of Internet users spend much of their time online visiting social networking sites, while 69 percent stay connected with their family and friends through instant messaging. These developments, experts note, have influenced the buying habits of most Internet users today, especially the generation of young Filipinos who use the Internet to search and shop for their must-haves.

Last year, statistics showed that retail sites topped the list of the most visited sites for Filipino online shoppers at 49 percent, while travel sites came in next at 26 percent.

BPI has always been known for staying a step ahead in terms of innovative banking technologies by pioneering best practices that have become the standard for today’s local banking scene. “The explosion of social media the past two years has given way to opportunities for increased interactions and connectedness.  We have seen the tremendous growth of eCommerce, yet, there are many more who are wary of shopping online due to concerns on security and payment inconvenience,” says Ginbee Go, Senior Vice President and BPI Cards Issuing Business Head. 

In addition to My ePrepaid Cards, BPI is also launching the BPI eCredit, the first-ever virtual credit card exclusively designed for online shopping for BPI MasterCard cardholders. It will serve as the companion card for the BPI Express Credit MasterCard variants—Blue, Gold, Edge, Petron and Skymiles— and uses a different card number with its own sub-limit that cardholders can set and adjust as they need it.  




source: entrepreneur.com.ph
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Credit Card Company Tricks and Traps Every Consumer Should Know

Posted by oink2 Saturday, October 15, 2011 0 comments

Perhaps now more than ever before, consumers need to vigilant about protecting their hard earned money and go about spending it as wisely as possible. One of the most lucrative sectors in all of the financial industry, credit card companies are literally making billions of dollars each and every year by charging their unknowing customers one costly fee or hidden charge after another.
Searching for Hidden Charges
Until the credit card industry is one that’s completely governed by state or federal laws, we must make it a point to being diligent when it comes to protecting ourselves and our money. Although new laws recently enacted are supposed to curtail the practices that have cost consumers countless dollars such as rampant over-the-limit fees, the industry is likely to respond in kind with different sets of fees, less reward programs, and fewer promotional offers.      
Coupled with credit card offers and all new accounts are pages and pages of legalese, all of which are written in fine print and usually ignored or glanced over quickly. Not taking the time to read and understand at least the major stipulations and conditions of a credit card can soon lead to a costly lesson.
To save yourself any unpleasant surprises, as well as a considerable amount of money, examine your credit card statements closely as well as any change-of-terms notifications that come in the mail. Currently, credit card companies are allowed to change their terms any time they like as long as cardholders are given 15 days notice first.
Would you believe that you could possibly be charged for NOT using your credit card? Incredible as it sounds, many companies have implemented a policy of charging what’s referred to as an annual non-usage or inactivity fee, which typically averages around the twenty dollar mark and just one of the many and varied types of fees card issuers use to earn their billions.
Plan on taking your credit card on vacation with you to another country? You may also be surprised to learn that many companies are now charging foreign transaction fees on cash advances and purchases made out of the country, usually averaging three percent of the total purchase.
Fees, Fees, and More Fees
Annual fees are quite common and charge the cardholder a fee of anywhere from $30 to $50 or more per year just for the privilege of using the account. Subprime credit cards, or those that are designed for people with less than stellar credit, are infamous for charging annual fees.
The vast majority of credit cards come with a 0% introductory rate for at least the first few months, which at first, sounds like it could be an excellent deal, provided you know what the stipulations of this deal are.
Know that most companies will cancel this special APR if you’re late with even one payment, and some will even charge you retroactive interest on previous purchases if your debt isn’t paid off completely before the intro period ends.
Hidden catches and fees aside, credit cards can still be a good way to build credit, purchase much needed things we may not be able to afford otherwise, or even fund a new business’ start-up costs. And, although shopping around for the best deal is definitely a good starting place, being totally aware of all the common pitfalls, tricks, and traps used by credit card issuers is the only sure way of managing your finances wisely.


source: financetips101.com
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Advantages Of Internet Banking

Posted by oink2 Friday, September 30, 2011 0 comments




Are customers being forced towards use of internet banking for the convenience of the banks and big business? Or do customers really benefit from banking on-line?  

Internet banking does offer many benefits for both banks and their customers.  So the banks are doing what they can to encourage customers to try it.

1. An internet banking account is simple to open and use. 

You just enter a few answers to questions in a form while sitting comfortably in your own home or office. To access your account, you establish security measures such as usernames and passwords. To complete the set up of your account, you just print, sign and send in a form.

2. Internet banking costs less. 

Because there are fewer buildings to maintain, and less involvement by salaried employees, there is a much lower overhead with online banks.   These savings  allow them to offer higher interest rates on savings accounts and lower lending rates and service charges.

Even traditional brick and mortar banks offer better deals such as free bill paying services to encourage their customers to do their banking online.

3. Comparing internet banks to get the best deal is easy. 

In a short time, you can visit several online banks to compare what they offer re savings and checking account deals as well as their interest rates.

Other things you can easily research are what credit cards are available, credit card interest rates, loan terms and the banks own rating with the FDIC.

4. Bouncing a check (accidentally) should be a thing of the past because you can monitor your account online any time, day or night. 
You can track your balance daily, see what checks have cleared and when and know when automatic deposits and payments are made. This is all possible by simply going online to the banks website and logging into your account.

5. You can keep your account balanced using your computer and your monthly statement. 
Your bank account information can be downloaded into software programs such as Microsoft Money or Quicken, making is easy to reconcile your account with just a few mouse clicks. The convenience of the data capture online makes it much easier to budget and track where your money goes. Your internet bank account even allows you to view copies of the checks you have written each month.

6. With the ability to view your account at anytime, it is easier to catch fraudulent activity in your account before much damage is done. 
As soon as you log into your account, you will quickly see whether there is anything amiss when you check on your deposits and debits. If anyone writes a check or withdraws funds from your account and you know it wasn't you, you will see it right away. This lets you get started on correcting the problem immediately rather than having to wait a month to even have a clue it is happening as would be the case with a traditional bank.

7. Internet banking offers a great deal more convenience than you could get from a conventional bank. 
You aren't bound by 'banker's hours' and you don't have to go there physically in your car. Time is not wasted when you have work to do because you can do your office's banking without leaving the office. No matter where you are or what time it is, you can easily manage your money.

There are sound reasons why internet banking is growing. The economic advantages have encouraged banks to provide an increasing range of easy to use services via the internet.

Customers have found doing business online simple and speedy and have become very comfortable with the arrangement. Internet banking gives people more control over their money in a very convenient way that they find enjoyable and reassuring.
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