MONEY MATTERS : WHAT'S A GOOD INVESTMENT STRATEGY?

Hi Mimi! Thank you for this timely question. Allow me to enumerate your good points as I read your message. First, you have a definite goal. Goals are important, this is our idea of what kind of life we want to have in the future. I see that you listed down your short and long term goals and that is very good.

Next, you know your investment profile (conservative vs. aggressive). I consider myself as an aggressive investor too. As they say, high risk generally means high returns. Lastly, your time horizon - I appreciate how specific you are in pinpointing your time lines. Among all these things - your KNOWLEDGE on these investments is most important. Now that you have that covered, we can now answer your question on WHAT'S A GOOD INVESTMENT STRATEGY?

There are two schools of thought on investment strategy. First: Invest on a product that yields the highest returns (makes sense, right?) Second: Diversify (put your eggs in different baskets). Personally, I am in favor of diversification. After all, all investment products have risk factors, having said that, it's best that you scatter your resources on different baskets! Here are my five tips:

♣ Open an account with minimum initial investments first. This can be your "testing the water" phase. All institutions that you've mentioned are trust worthy and regulated by BSP/SEC, so taking calculated risks with them can be worth it. With minimum investments (usually Php 10,000) you can measure their rate of returns within your time horizons.

♣ Allot one day to open your investments personally. ATR Kim Eng, FAMI and BDO are all within Ayala Makati area. So you may want to schedule one day to open an account to all of them. I've included some links below for the benefit of our dear readers:

☺HOW TO OPEN A MUTUAL FUND ACCOUNT AT ATR KIMENG? (HERE)
☺HOW TO OPEN A FIRST ASSET METRO, INC. (FAMI) MUTUAL FUND? (HERE)
☺HOW TO INVEST IN BANCO DE ORO (BDO) UITF ACCOUNT? (HERE) 

♣ While investing in UITF and mutual fund is an easier option, I'd suggest you to open a COL Financial Account too if you want to know more about stock market and how it works. It's a different kind of vanilla since COL investing requires you to decide which ones to buy or sell. Piece of advice: Buy blue chip companies for your own peace of mind. 

♣ Continue to nourish your knowledge on investments. From the looks of it, I see that you're one of the many who likes to learn about financial products. I've heard that a new product will hit the Philippine shore, by the name of Exchange Traded Funds (ETFs). This will be offered by the same companies you've mentioned. You may want to explore this one soon.

♣ Pray. I know this may sound a bit off-topic, since investments are based on logic. However, I am fully convinced that when we Trust in the Lord and we lean not solely on our own understanding, He will crown our efforts with success. ☺

Hope this helps. More power, Mimi! -CMK