how/where would you invest your 1m?

how/where would you invest your 1m?

Postby vintage_dog » Wed Mar 12, 2008 3:18 pm

(or 100t, 1m, 10m, etc...)

this thread is to encourage investment ideas....
Last edited by vintage_dog on Wed Mar 12, 2008 3:30 pm, edited 1 time in total.
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Postby Superman » Wed Mar 12, 2008 3:28 pm

If you have a spare P1M, try to consider Unit-Linked Products are Variable Life Insurance Policies (in my case, Axa Life Insurance and Investments)...You can choose either a single pay product (as low as P200,000.00), a 5-pay product or a continuous pay product which allows you to invest in bonds, equities or a combination of both...You can also invest either in PESO or in US Dollars...We even have a product w/c specifically answer for your child's education needs or even your retirement fund...

You may check our website: http://www.axa.com.ph

We have different products and funds w/c may suit your needs...Among all Unit-Linked Products currently offered in the market today, we have one of the best-managed series of funds c/o our very competent team of fund managers...so your money earns apart from having a life insurance coverage...

What's important is you don't simply put all your eggs in one basket...If you have bank accounts - VERY GOOD, if you have mutual funds - VERY GOOD, if you have stocks - VERY GOOD...learn to diversify...place some in Trust Funds, some in Variable Life/Unit Linked Products...Thanks!

PS: You may PM me for more inquiries :D
Last edited by Superman on Thu Mar 13, 2008 11:57 am, edited 3 times in total.
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Postby rtsyrtsy » Wed Mar 12, 2008 3:33 pm

Thanks for brining this up, VD.

I'd like to hear from folks here what the options may be, particularly those that beat the interest on loans I have, i.e. if investment yields less than the loan, I'm better off paying the loan.

I'd also specifically like to hear if people are staying with PhP/US$ of diversifying into other currencies.
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Postby kefq » Wed Mar 12, 2008 3:55 pm

Lending will be a good biz to venture in. Id start first with bank employees as my initial clients. 3.5% / month maximum loanable of 20k per employee. Syempre w/ PDC
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Postby KD » Wed Mar 12, 2008 4:08 pm

rtsyrtsy wrote:I'd also specifically like to hear if people are staying with PhP/US$ of diversifying into other currencies.


I have had some AUD and NZD exposure for the last four years. There are some AUD hedge funds which have good performance, providing gains both from the fund and the exchange rate.

In the case of NZD (Kiwi), interesting investment channels are harder to come by, but even rates on deposits/cash have been attractive.

It might be time, though, to unwind and return to USD.
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Postby keith » Wed Mar 12, 2008 4:13 pm

There are some private banking products out there that are pretty good. The one I got recently is a short term investment with no downside (worst case is guranteed money back) that is hedged on the rise or fall of gold prices.
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Postby romel » Wed Mar 12, 2008 4:58 pm

keith wrote:There are some private banking products out there that are pretty good. The one I got recently is a short term investment with no downside (worst case is guranteed money back) that is hedged on the rise or fall of gold prices.


Sir Keith, what bank and scheme is this? TIA.
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Postby keith » Wed Mar 12, 2008 5:54 pm

romel ... you got PM :)
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Postby audiostar » Wed Mar 12, 2008 6:33 pm

I hope this helps. This is an excerpt of an article I did for Lehman Brothers in April last year. Yours trully was requested by Lehman's Philippine agent, Roberto Herrera-Lim to do an article on the feasibility of holding on to stocks for the long haul. I deleted some technical stuff in this post.

Cheers!


In the long run, the rewards of investing in stocks can outweigh the risks.

It is widely known that individual stocks tend to have highly volatile prices, and returns you might receive on any single stock may vary wildly. If you invest in the right stock, you could make bundles of money.

On the downside, since the returns on stock investments are not guaranteed, you risk losing everything on any given investment. There are hundreds of recent examples of dot-com investments that went bankrupt or are trading for a fraction for their former highs. Even established, well-known companies in the U.S. such as Enron, Worldcom, and Kmart filed for bankruptcy, and investors in these companies lost everything.

Between these two extremes is the daily, weekly, monthly, and yearly fluctuation of any given company’s stock price. Most stocks won’t double in the coming year, nor will many go to zero. But do consider that the average difference between the yearly high and low stock prices of the typical stock on the Philippine Stock Exchange is about 60%.

In addition to being volatile, there is the risk that a single company’s stock price may not increase significantly over time.

Clearly, if you put all of your eggs in a single basket, sometimes that basket may fall, breaking all the eggs. Other times, that basket will hold the equivalent of a winning lottery ticket.

* * *

One way of reducing risk in investing in individual stocks is by holding a larger number of stocks in a portfolio. However, even a portfolio of stocks containing a wide variety of companies can fluctuate wildly. You may experience large losses over short periods. Market dips, sometimes significant, are simply part of investing in stocks.

For example, consider the Philippine Stock Exchange Index, a basket of about 30 of the most popular and some of the best, companies in the Philippines. If during the last 20 years you had held an investment tracking the index, there would have been six different occasions when that investment would have lost 10% or more of its value.

The yearly returns in the stock market also fluctuate dramatically. The highest one-year rate of return of 224% occurred in 1986, while the lowest one-year rate of return of negative 41% occurred in 1997. It should be obvious by now that stocks are volatile, and there is a significant risk if you cannot ride out market losses in the short term. But don’t worry; there is a bright side to this story.

* * *

Despite all the short-term risks and volatility, stocks as a group have had the highest long-term returns of any investment type. This is an incredibly important fact! When the stock market has crashed, the market has always rebounded and gone on to new highs. Stocks have outperformed bonds on a total return (after inflation) basis, on average. This holds true even after market peaks.

This is the whole reason to go through the effort of investing in stocks. Again, even if you had invested in stocks at the highest peak in the market, your total after-inflation returns after 20 years would have been higher for stocks than either bonds or cash. Had you invested a little at a time, not just when stocks were expensive but also when they were cheap, your returns would have been much greater.

* * *

Just as compound interest can dramatically grow your wealth over time, the longer you invest in stocks, the better off you will be. With time, your chances of making money increase, and the volatility of your returns decreases.

The average annual return for the Philippine Stock Exchange Index for a single year has ranged from negative 41% to positive 224%, while averaging 28%. After holding stocks for five years, average annualized returns have ranged from negative 16% to positive 76%, while averaging 20%. Finally if your holding period is 20 years, you never lost money, with 20-year returns ranging from positive 18% to positive 28%, with the average being 24%.

These returns easily surpass those you can get from any of the other major types of investments. Again, as you holding period increases, the expected return variation decreases, and the likelihood for a positive return increases. That is why it is important to have a long-term investment horizon when getting started in stocks.

* * *

While historical results certainly offer insight into the types of returns to expect in the future, it is still important to ask the following questions: Why, exactly, have stocks been the best performing asset class? And why should we expect those types of returns to continue? In other words, why should we expect history to repeat?

Quite simply, stocks allow investors to own companies that have the ability to create enormous economic value. Stock investors have full exposure to this upside. For instance, would you rather lend the Philippine government money at today’s 7% interest rate for the next 10 years, or would you rather be an owner, seeing the value of your investment grow several hundred fold?

Because of the risk, stock investors also require the largest return compared with other types of investors before they will give their money to companies to grow their businesses. More often than not, companies are able to generate enough value to cover this return demanded by their owners.

Meanwhile, bond investors do not reap the benefit of economic expansion to nearly as large a degree. When you buy a bond, the interest rate on the original investment will never increase. Your theoretical 10-year loan to the Philippine government would never have yielded more than 7%, no matter how well the country did. Being an owner certainly exposes you to greater risk and volatility, but the sky is also the limit on the potential return.

* * *

While stocks make an attractive investment in the long run, stock returns are not guaranteed and tend to be volatile in the short term. Therefore, I do not recommend that you invest in stocks to achieve your short-term goals. To be effective, you should invest in stocks only to meet long-term objectives that are at least five to ten years away. And the longer you invest, the greater your chance of achieving the types of returns that make investing in stocks worthwhile.
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Postby dogears » Wed Mar 12, 2008 11:29 pm

keith wrote:romel ... you got PM :)

Bosing, what about me?! :lol: TIA!
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Postby dimfer » Wed Mar 12, 2008 11:46 pm

I'll go into hi-fi business - kung hindi mabili, eh di aking gagamitin na lang :twisted:
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Postby zenaudio » Wed Mar 12, 2008 11:58 pm

VD, not many options around ...

The key question is what's your investment horizon?

If long, then stocks or equity or balanced funds maybe... but be ready to ride this out for a loong time...

If short term, mahirap talaga ngayon -- interest rates are low, stocks are very volatile, hard to predict currency movements...

My own take is that it might be a good time to convert to USD -- after the US elections (which the Dems are expected to win), they would pull out of Iraq and refocus on the economy. There's a possible upside coming from this; I believe in the free market's ability to correct itself, especially after the amount of "bloodbath" that is being paid today.

If you are pessimistic on the USD, the AUD might be a good option as this would track most Asian currencies (so it now depends on how much faith you have on Asian economies). But it tracks gold, which is a haven away from the USD.

Can't decide which way to call? Split it.

Maybe the best investment is to buy your dream audio system now while the peso is still strong... :twisted: Seguradong mataas ang ROI nito. :D
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Postby zenaudio » Thu Mar 13, 2008 12:00 am

double post
Last edited by zenaudio on Thu Mar 13, 2008 10:00 pm, edited 1 time in total.
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Postby crisdlr » Thu Mar 13, 2008 1:10 am

It depends how brave or confident you are. I don't know if a million pesos is acceptable to the private banking business. Usually with foreign private banks like Amex Bank, Citibank Private Banking or INg, etc. have a minimum deposit requirement of 1 million dollars. Low risk is basically bank products like time deposits, annuities, etc. Medium risk are stocks and bonds, mutual funds, etc. High risk are those that make your money sleep and really dependant on market forces like real estate, start-up businesses or venture funding, commodities, etc. Its up to the investors goals and risk decisions. My money is with my private banker and tied into gold and metals investor, foreign currencies basket and selected funds thats giving my family enough of a nest basket with a portion going to me and wife and a large portion for my children.
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Postby rlmaceda » Thu Mar 13, 2008 2:35 am

A business idea I've pondering lately involves setting up a 'storage' facility. When all the baby-boomers and OFWs return to fill up the condos they've been buying, they'll be bringing in more stuff than they can place in these units. The demand for 'storage' facilities will be in full bloom 10 years from now.

Time to build. I'll put in 1M pesos if anybody wants to venture into this.
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Postby JackD201 » Thu Mar 13, 2008 10:39 am

I think inventory of Tono products particularly the much delayed PP and Tonofono will give better yields with half the outlay :twisted:

Could it be that Prof. JM's return is simply coincidental?
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Postby rtsyrtsy » Thu Mar 13, 2008 11:34 am

Here's an investment opportunity for those in the construction sector...

http://www.arabianbusiness.com/513548-labour-crisis-threatens-to-derail-gulf-construction
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Postby kabubi » Thu Mar 13, 2008 11:56 am

invest in homing pigeons.

your money will keep coming back to you :D
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Postby TheAnalogSource » Thu Mar 13, 2008 9:52 pm

if i have....


1k..... i'll invest it in lotto, bingo

1m.... add to capital or start a new venture


100m.... invest in low risk even if low yield lang...
i think i wont be able to use it all in a lifetime :)
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re: where and how to invest 1m

Postby godspell » Mon Mar 17, 2008 10:09 pm

i am working in a forex currency trading with plauski forex in equitable tower and soon with perfomance forex (enterprise mkti).

you can earn profit in buying and selling of currency which is lower risk than investing money in stocks or other business. you can a try it out and we are willing to assist our clients.

$200 in 2 weeks is a possible amount you can earn. don't hesitate to contact me if you are interested. thanks for this forum:)
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