Money Magnets

BDO Easy Investment Plan

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Found this ad in the newspaper and thought about sharing it here with you guys.  This is certainly good news for everyone who wants to make saving a habit.  With the BDO Easy Investment Plan, you can enroll your savings or payroll accounts in a BDO automatic debit facility for the purpose of immediately investing the money in your choice of BDO Unit Investment Trust Fund.  And as long as you are enrolled in the program, the process of saving and investing is done continuously on the selected contribution dates.

Check out the ad from BDO after the jump. (Includes details on how to avail and where to inquire about the service)  

The BDO Easy Investment Plan is a “saving and investment” program whose objective is for an individual investor to attain his financial goals through the twin habits of regularly saving and investing. Under this arrangement, an investor enrolls his savings,checking or payroll account in a BDO automatic debit facility wherein a fixed amount/s (with a minimum of Php1,000.00) per month is/are deducted for the purpose of immediately investing in selected BDO UITFs. Every time the market value of his UITF investments reaches the minimum amount of Php 10,000.00 investment required for the selected UITFs, he is issued a Confirmation of Participation (COP) which converts his EIP contributions into regular UITF investments. As long as he is enrolled in the program, the process of saving, investing and issuance of COP continues automatically on the selected contribution dates.
For an enrollee in the program, the EIP has become a facility to help him to regularly set aside funds for investment to meet multi-purpose needs in the future, such as funding a wedding, children’s education, construction of a home or retirement, etc. It also gives him an affordable access to the services of the BDO professional investment managers who keep constant watch over the BDO UITFs.
The EIP espouses the investment precept that the sooner an individual investor begins investing, the more time his money can grow. Investing even in small amounts when done on a regular basis and early on, can produce considerable rewards over the long term. Through the EIP, he can experience the power of “compound interest” which refers to interest earned on principal plus interest that was earned earlier.
Another advantage of the EIP is that it enables an individual investor to ride out market movements through “cost averaging.” Investing fixed amounts of contributions at regular intervals over a long period of time will build his portfolio one step at a time, regardless of market conditions, effectively averaging costs over time. In short, through the EIP, he will be able to invest without worrying about monitoring market movements and timing his investments. This strategy also mitigates the risks associated with investing lump sums at a wrong time and bearing the consequence of the market losing value shortly after making the investment.
Currently, selected BDO UITFs, particularly those which are best for investors with a longer term investment horizon, are available for the EIP.
Here’s how to join the EIP, in just three easy steps:
1. Fill out the EIP Application Form and enroll your BDO Savings/Checking/Payroll Account in the EIP at any BDO branch.
2. Decide on the following details of your contribution:
     • Amount: Minimum of Php1,000.00 per contribution
     • Frequency and schedule: Once a month (5th, 10th, 15th, 20th, 25th or the 30th)         or Twice a month (every 5th & 20th, 10th and 25th, or 15th & 30th)
3. Choose what type of UITF is best for you: BDO Fixed Income Fund, BDO Peso Balanced Fund or the BDO Equity Fund
Rush to your nearest BDO branch today!
For inquiries, please call Trust and Investments Group at (02) 840-7000 locals 4265, 4244, 4255 and 7032 or send an e-mail to investments@bdo.com.ph.

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7 comments:

1. Anonymous said,

   This sounds like citiseconline's EIP, but with convenient bank feature. I've been considering EIP but I'm not sure how the profit/income comes. Do you sell after a number of years?

   on February 2, 2011 at 9:39 AM  

   
   
2. Money Magnets said,

   Hi wadisui!
   
   Yes it is. It even has the same acronym. ^^ The main difference is with COL's EIP, you use the money to buy STOCKS while for BDO's EIP, you use the money to buy UNITS in a UITF.
   
   Since STOCKS and UITFs are not fixed income instruments then INCOME IS NOT GUARANTEED. It will depend on the performance of the STOCK or the FUND in the case of a UITF. Choosing a Fixed income fund like BDO's Fixed Income Fund will lessen the risk though.
   
   And yes, basically the idea is to keep your money in the fund long enough (3-5 years or even longer depending on the purpose of your investment - kid's education, retirement, etc.) before redeeming them. Although income is not guaranteed, past data has shown that the average returns for UITFs and STOCKS over a long period of time have been positive.
   
   If you want to learn more about UITFs, just click the link on the site's header. ^^
   
   Let me know if you have more questions. I would be happy to answer them.
   
   Thank you.

   on February 2, 2011 at 11:34 AM  

   
   
3. Sam said,

   Hi Money Magnets,
   
   I am a first timer/newbie. I would like to know if in case I invest in BDO peso balanced fund, do I necessarily have to pull out money every time the NAVPU increases? or I'll just let the money stay there? Once I invest, can I pull out mney partially?
   
   Sorry I really do not know how this works. I am actually reading your blog to know more.

   on July 26, 2011 at 6:00 PM  

   
   
4. Money Magnets said,

   Hi Sam,
   
   There's no need to pull out the money every time the NAVPU increases. And depending on your investment strategy, you can just leave it there to grow.
   
   As for partial redemption, that is possible. But bear in mind that funds have a MINIMUM Initial placement. While partial redemption is allowed, the bank will require you to fulfill this minimum. If your remaining placement upon redemption will be less than this minimum, the bank may require you to redeem all and not just a part of it.
   
   Sam, check out the articles on this page for more info about UITFs
   
   http://personal-finance-free.blogspot.com/search/label/UITFs
   
   Hope this helps. Don't hesitate to contact us if you have more questions. You can reach us at moneymagnet.phil@gmail.com

   on July 27, 2011 at 11:13 AM  

   
   
5. Kiprusoff said,

   I never been read an article like this since i was looking for a good investment.Good job.

   on February 27, 2012 at 6:41 PM  

   
   
6. Anonymous said,

   sir...what is the process if i get educl plan for my 1yr old baby?hw much will i give to the bank.tnx hazel
   

   on April 21, 2013 at 6:08 PM  

   
   
7. Money Magnets said,

   Hi Hazel,
   
   We'd like to point out first na hindi po ito educational plan.
   
   And UITF po ay parang trust fund, pwede niyo po gamitin ang pera sa kahit anong paraan na gusto niyo. Hindi po ito parang educational plan na specific po ang gamit, at yan ay ang pangtustos sa pag-aaral ng anak mo.
   
   Medyo mahirap po ang computation at depende po ito kung saan niyo gusto mag-aaral ang anak niyo.
   
   At isa pang consideration ay ang walang guarantee na returns sa UITF.
   
   Maganda po ang inyong adhikain na magsimula ng magtipid para sa edukasyon ng inyong anak.
   
   Siguro po mas maganda magsimula mag save kung magkano po yung kaya niyong e-save. Pwedeng magsimula sa 500 kada-buwan. Dagdagan ang inaambag habang tumatanda ang bata para meron po kayong pang enroll kapag nagsimula na itong mag-aral.
   
   Ang tuition fee po ay tumataas din every year. Hindi po natin alam kung maging magkano na ang tuition sa pagtanda ng anak niyo kaya mabuti na yung mag save po sa abot ng makakaya. Ang UITF naman po ay perang pwede niyo gamitin sa ibang bagay din tulad ng pambili ng bahay at lupa.
   
   Sana ay nakatulong kami sa inyo.
   
   Maraming salamat.

   on April 21, 2013 at 7:53 PM  

   
   

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