If you are looking for best way to invest money today, read Francisco Colayco’s tips which he shared in the first Pera Palaguin Webinar last August 12, 2011.
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Invest regularly in pool funds.
Why pool funds? Because when you invest, it has to be money in your need. According to Investopedia, pool funds are funds from many individual investors that are aggregated for the purposes of investment, as in the case of a mutual or pension fund. Investors in pooled fund investments benefit from economies of scale, which allow for lower trading costs per investment, diversification and professional money management.
Investing has many ways. Investment means that if you really want to grow your money nobody will guarantee you how much return you will make. Those who gave guarantees were lending investments.
The financial literacy advocate caution that you will not become rich nor become a millionaire in the sense that the return are small, maybe 6% – 8% and a maximum of 10% – 12 % per year. But investment for capital growth can run to as low as 18, 20, 30 percent per year. Though, there’s still no guarantee.
So how do you protect yourself? By investing regularly in small amount.
Mr. Colayco, KsK Coop chairman, divulged that the Colayco Foundation and KSK Coop offers mutual funds and unit investment trust funds that you can invest for as small as P1,000 per month. They have Regular Saving & Investing Program where small investors can regularly place 200 or 300 per month and pool it into the First Asset Metro Investment Corp. Save and Learn Equity Fund so that you can gain the power of growing your wealth as if you are multi-millionaire.
Don’t Panic.
This is a simple formulation. There’s lot of time investing regularly and don’t panic when the market is down.
Many investors panicked when credit rating agency Standard & Poor downgraded the U.S. credit rating from triple-A to AA-plus. It may not sound like a big deal, but it hit global financial markets like a bombshell. And it created an opportunity to buy stocks at low price that can be sold at premium when time comes.
Like Warren Buffet, Francisco Colayco, said that when the market is down, it’s time to buy.
Which is more beneficial? I and my friends invest at the same time or I’m the only one that will invest?