Understanding My Risk Tolerance

          I'm not a risk taker maybe that's one of the reason why I'm still single, hahah. Kidding aside, early this year I became interested with mutual funds & uitf's as I feel that I'm still not ready with stock investing.

          Everytime I visit the sites of different mutual funds the word "risks" is always present.
I went to BDO & ask for their investment products, they will initially inform me "Ma'am, mataas po ang risks ng equity fund ha."

          I went to ChinaBank to ask again for Equity fund & Balanced Fund, both have an initial investment of 50k & 10k as an additional investment". One of their staffs assisted me with my inquiries with a little introduction of an investment product she was offering which I politely decline, as I answered her "hindi ko kasi kaya ang investment na may monthly obligation maliit lang kasi ang sahod ko, baka pumalya ako at di ko matapos." I'm interested with UITF & how it works, she answered "basta kapag nagplace ka ng investment monitor mo lang kasi everyday nagpa-flactuate ang value kaya hindi agad guaranteed ang returns in a short span of time."Still di pa rin nag-sink in ang information sa sarili ko."

          Again I inquire to Philam life, one of their agents answered me, "Kapag bumili ka ng 10 shares at ang value ng share is 5.00 ngayon, your investment value is P 50.00. Then after 1 year gusto mong kunin ang share mo pero ang value is P2.00---then 20.00 na lang ang makukuha mo."

          Okay I got it, I know it, but do I understand it? My answer that time is still NO. " Parang ang hirap mag-invest na alam mong may posibleng losses after a year, ganyan po kasing mag-isip ang karaniwang taong katulad ko." But then I was thinking, " bakit sila nag-iinvest pa rin kahit may risk?" It made me think again - "siguro mas malaki rin ang future gains", maybe it's just a matter of having a time frame for every investment. Well, I am still in the process of learning here.

          So I proceeded with my plan, how will I know If I 'm not going to try it - last July 7, I opened a balanced fund in FAMI (I chose a fund with a moderate risk), so when they ask me- you know the risks mam? I answered yes.

          Today, I was checking some files, when I found this peso cost averaging excel template I downloaded from ready to be rich site & input some datas from my mutual funds. So glad when I found this template coz I'm a total idiot with this excel software.

My FAMI peso cost averaging data

My Philequity peso cost averaging data

          In these PCA templates from Philequity & FAMI balanced fund where I both invested a total of P 10,000, a Sales Load of P 2.0% & 3.50% we're automatically deducted from it respectively & stock value shown was a little bit low from the total amount I invested.

          Now seeing those templates, I can say that I now understand what risk is. I have prepared myself mentally & emotionally that the value of my shares flactuates as I have been stalking the sites of both FAMI & PEMI thrice a week. And today the NAVPS of my FAMI balanced fund is - 2.74 which is below the value of my initial investment. As for the PEMI, the value of my equity fund today is 36.77 which is again below the value of my initial investment but that's okay with me (mag-iisang buwan pa lang naman), I now understand the actual feeling, "kaya pala ganun ang feeling nila." :)

          Knowing is actually different from understanding, I can say that I know the facts but to actually experience it is important. Hey, I'm a slow learner that's why I don't give advises, If somebody calls me an idiot "I don't really care".What's important to me is I'm learning & I keep on learning through some of my experiences & through constant pursuit of knowledge.

          It's really an advantage that internet was invented so there's no excuse now not to be financially aware as most of the informations we're actually given free from facebook, you tubes & other financial blogsites today.


Just sharing again!
Happy Weekend & Happy Investing!