pinoywealthacademy

How to compute your earnings in Mutual Funds

2010-04-19T18:26:00.000-07:00

A lot of people invested in Mutual Funds are still at a loss regarding how their income from this investment is computed. We’ll try to simplify how it’s being done in this discussion.

Step 1: Determine how many shares you own
When you invest in mutual funds, you are actually buying “shares” of the mutual fund company.

The price you pay is the NAVPS or the Net Asset Value per Share, a figure that changes every day since it represents the market values of the investment assets the mutual fund company owns.
Let’s assume you want to invest P100,000. When you checked with the mutual fund, the NAVPS price is P1.75. The number of shares you will then get is:
P100,000 divided by P1.75 = 57,142 shares
Your total fund value that day is:
57,142 shares x P1.75 NAVPS = P99,998.50
Since you paid P100,000 but the amount of the shares you bought is only P99,998.50, the company would actually return P1.50 to you.
For simplicity purposes, we did not consider any fees or sales loads charged by the fund. Do note, though, that most funds will charge a fee either upon investment (entry fee) or when redeeming your mutual fund shares (exit fee). We’ll defer computations including fees in a succeeding article.

Step 2: Determine the current NAVPS
At any day, you can compute the value of your mutual fund investment. The only two things relevant to you are:
Number of shares you own
NAVPS price on that day
Let’s assume that at the end of 1 year, the NAVPS of your mutual fund is P2.50. Your profit is simply the difference between the current NAVPS and the NAVPS when you bought your shares. Multiply this with the number of shares you own and you’ll get the amount of your profit.
Mathematically:
Current NAVPS = P2.50
Original NAVPS = P1.75
Difference in NAVPS prices = P2.50 – P1.75 = P0.75
Number of Shares Owned = 57,142
Profit = P0.75 x 57,142 = P42,856.50 This same amount can also be computed by comparing the current total fund value and initial fund value.:
Beginning fund value = 57,142 shares x P1.75 NAVPS = P99,998.50
Current fund value = 57,142 shares x P2.50 NAVPS = P142,855.00
Difference in fund values = Profit = P42,856.50
One major point to remember, though. This profit is still “paper profit” or “unrealized income.” That’s because you have not redeemed the shares yet. Any day afterwards, the NAVPS will still change which means your fund value and profit will also change.
We’ll show this in the next example.

Step 3: Calculate actual profit at time of redemption
Let’s assume you wanted to encash and redeem your shares at the end of the 2nd year. Before we proceed, you need to know that the fund value and NAVPS price at the end of Year 1 are now irrelevant. Whatever “profit” you gained before was not realized since you did not redeem the shares.
Assume that at the end of Year 2, the NAVPS price is P2.00. As in Step 2, we can compute the profit by comparing the current and original NAVPS:
Current NAVPS = P2.00
Original NAVPS = P1.75
Difference in NAVPS prices = P2.00 – P1.75 = P0.25
Number of Shares Owned = 57,142
Profit = P0.25 x 57,142 = P14,285.50
At the end of Year 2, your total investment earned P14,285.50. If you redeemed all 57,142 shares, you can now actually earn and get P14,285.50 cash as profit.
The total money you would get from the mutual fund is this profit plus the original investment (P14,285.50 + P99,998.50), which can also be computed this way:
Current NAVPS = P2.00
Number of Shares Owned = 57,142
Total Fund Value = P2.00 x 57,142 = P114,284.00
Again, be reminded that this computation does not consider any fees charged by the fund. Your fund value will be reduced by those fees.

Top Mutual Funds in the Philippines – 1st Quarter 2010 Report

2010-04-19T17:43:00.000-07:00

Mutual funds in the Philippines are off to a good start this year, with most funds registering a positive return during the first three months of the year 2010.
The complete list of the performance of Philippine Mutual Funds from January to March 2010 below.

YEAR-TO-DATE PERFORMANCE OF MUTUAL FUNDS IN THE PHILIPPINES as of the 1st Quarter of 2010 (January to March 2010)

EQUITY FUNDS (primarily invested in Peso equity securities)
ATR KimEng Equity Opportunity Fund – 11.29%
Philam Strategic Growth Fund – 10.02%
Philequity Fund – 7.36%
First Metro Save and Learn Equity Fund – 6.73%
Sun Life Prosperity Phil. Equity Fund – 5.57%
Philippine Stock Index Fund – 4.89%
Philequity PSE Index Fund – 4.71%
United Fund – 2.47%

BALANCED FUNDS (primarily invested in Peso debt and equity securities)
MFCP Kabuhayan Fund – 9.03%
Philam Fund, Inc. – 8.01%
GSIS Mutual Fund – 7.76%
First Metro Save and Learn Balanced Fund Inc. – 6.95%
ALFM Growth Fund – 6.63%
Sun Life Prosperity Balanced Fund – 3.64%
Optima Balanced Fund – 3.37%
FOREIGN CURRENCY-DENOMINATED BALANCED FUNDS
Sun Life Prosperity Dollar Advantage Fund – 1.18%

BOND FUNDS (primarily invested in Peso debt securities)
Sun Life Prosperity GS Fund – 1.92%
Philam Bond Fund – 1.50%
Philequity Peso Bond Fund – 1.45%
Sun Life Prosperity Bond Fund – 1.23%
ALFM Peso Bond Fund – 1.12%
First Metro Save and Learn Fixed Income Fund – 0.98%
Cocolife Fixed Income Fund – 0.69%
Prudentialife Fixed Income Fund – 0.50%
Ekklesia Mutual Fund – No data

FOREIGN CURRENCY-DENOMINATED BOND FUNDS
Philequity Dollar Income Fund – 2.05%
Philam Dollar Bond Fund – 1.89%
ALFM Euro Bond Fund – 1.81%
ALFM Dollar Bond Fund – 1.46%
Sun Life Prosperity Dollar Abundance Fund – 1.46%
AIG Global Bond Fund Phils. – (2.05%)
Grepalife Dollar Bond Fund – No data
Grepalife Fixed Income Fund Corp. – No data
MAA Privilege Dollar Fixed Income Fund – No data
MAA Privilege Euro Fixed Income Fund – No data

MONEY MARKET FUNDS (primarily invested in short-term Peso securities)
Philam Managed Income Fund – 0.43%
First Metro Save and Learn Money Market Fund, Inc. – 0.35%
Sun Life Prosperity Money Market Fund – 0.22%
ATR KimEng Money Market Fund – 0.00%

* Figures in (xxx) denote a loss. All data are from the Investment Company Association of the Philippines (http://www.icap.com.ph/).

Disclaimer: Although the rate of return is a good measure of an investment instrument’s performance, other things such as consistency of return and exposure to risks must also be assessed. Note also that past performance is not and cannot be a guarantee of future returns.

(courtesy of Pinoymoneytalk)

PS: This is a great deal of how money works for us. To learn more about financial education for free click here.

TOO YOUNG TO SAVE FOR RETIREMENT? HERE ARE 10 REASONS WHY YOU SHOULD.

2010-03-04T06:09:00.000-08:00

For almost all young adults who have just started their first job, or who are just getting ready to settle down and marry, planning for their retirement is not at all in their minds. For those who have just gotten their first job, the experience of receiving your paycheck is a thrilling and empowering feeling. Now you have money to spend for the things you’ve always wanted to get. Billboards and glitzy print ads beckon you to accumulate all sorts of products and services that make you enjoy the life that you feel entitled to. At last!

But, listen, time waits for no one. Sooner or later, you will find yourself with a closet full of out of fashion clothes, outdated gadgets, and toys that you have outgrown. Worse still, you may still have credit card bills to pay for these things, and zero cash saved up for even your next vacation to Boracay. This time will come, if you’re not careful. And believe me, that time could just be around the corner.

If you’re smart, you should begin to plan for your retirement as soon as you receive your first pay check! Here are ten reasons why you should prepare now:

1. If you are employed, and your company is setting aside money for your SSS or GSIS or company retirement, guess what? What your company is setting aside is not going to be enough.

2. Time is in your favor. Who has more time to save for retirement at age 60? You, or your uncle who is 30 years older than you?

3. Because of # 1, you don’t have to sacrifice a lot in order to save a lot. If you and your uncle wanted to accumulate P1 Million by the time you’re both 60, you would have to save a smaller amount regularly, because you have more time to save. Right?

4. You can make more aggressive investments now but get rewarded with higher returns. Usually, these higher risk investments have a way of recovering very well over a longer period of time.

5. Inflation is not in your favor. You know it. Don’t be in denial. It will cost you more to retire than earlier generations ahead of you. So, don’t think that it will be affordable enough for you by that time.

6. You can start small and grow. Even setting aside a small portion of your paycheck each month will pay off in big pesos later.

7. It’s easier to develop the habit of saving while you are young and you have no major obligations.

8. As you accumulate savings over time, your money will starting working for you, rather than you working for money.

9. No matter how much you love your parents, do you like the idea of supporting your parents because they failed to save for their retirement? Well, don’t impose your failure to save on your children. They deserve a life of their own.

10. It’s great to enjoy your savings! Imagine the nice and easy life you can enjoy when you have saved enough. If you want to keep working even when you’re old, you will go to work because you like to, not because you have to. And – when you have saved enough to take care of a comfortable lifestyle – you can occupy yourself with work which probably won’t pay much, but which will be fun and self-fulfilling.

credit to: FAMI Save andLearn

Location Map of IMG

2010-02-18T16:53:00.000-08:00

Here is the location map address of IMG.

Learn HOW to Achieve Financial Success

2010-01-20T17:00:00.000-08:00

FINANCIAL SOLUTIONS TODAY

NOT SO MANY YEARS AGO:
With a little hard work & careful budgeting, most families could realize their dreams of buying their own home, sending their children to college and retiring in relative comfort.
A parent can raise 10 or more children… only the father works, mother stays at home
Having a good job or profession is enough to give you a comfortable lifestyle.

But TODAY:
Many people can hardly realize even one of those dreams & they are forced to downsize their dreams.
The 10 children cannot raise a parent.
A couple, both working can hardly raise 2 or 3 kids.
INFLATION & INCREASING COST OF LIVING: Make most Filipinos having difficulty in saving money for their future needs. And when the need arises (repairs, illness, education, emergency needs, etc.), their only option is DEBT.
DEBT TRAP: Most Filipinos are burdened with high interest debts from pawnshops, credit cards, car/ housing loans, etc.
JOB & BUSINESS INSECURITY: Many Filipinos lose their income due to business failures & lay-offs.
MANY FAMILIES ARE FINANCIALLY STRUGGLING:
Argue over finances: the # 1 cause of divorce in the US
Can’t afford to have 1 spouse stay home with the children
Can’t fund parent’s hospitalization/ medical needs

Problem: Most people stick to OLD financial solutions,
and fail to shift their paradigms fast enough to the changing world.

Result: Most people are left behind and struggling financially.

I want to join click here....

Taking control of your financial future starts with Understanding.

And it begins with Financial Education!

IMG is committed to help Filipino families increase their Financial IQ.

To deliver financial education on a massive scale,

we established the WEALTH ACADEMY—a learning series to

help people increase their financial literacy.

Learn HOW to Achieve Financial Success:

The Six (6) Proven Steps to Build Wealth

I want to join click here....

at the WEALTH ACADEMY Seminar

Wealth Academy Training Schedule

2010-01-20T16:17:00.000-08:00

Providing information to Guide YOU in Making Decisions for a Better Financial Life.

Series 1: Financial Solution Today (Mon 7 pm / Wed 7 pm / Sat 2 pm)

- The Six (6) Steps to Financial Independence

- How Money Works

- The Wealth Formula

- How to build the Solid Financial Foundation

Series 2: Finance & Investment 101 (Mon 7 pm / Sat 6 pm)

- Different Investment Vehicles and Strategies

- How to bypass the middleman and become Your own Financial Adviser & Broker

Mutual Fund, Diversification, Money Cost Averaging etc.

Series 3: Creating Multiple Passive Income Streams (Mon 7 pm / Sat 6 pm)

- The different sources of Passive Income

- How to create Passive Income Streams

- New Concept in Making Good Money

Series 4 -12 A comprehensive Approach to Personal and Financial Success!!!

For Inquries , Contact:

Wilson Testa

Business Field Leader

IMG - Wealth Academy

09292504350 / (632) 812 2551 loc 119

img.wealthacademy@gmail.com

DON’T JUST WORK FOR MONEY , LEARN HOW MONEY WORK FOR YOU.

2010-01-19T17:57:00.000-08:00

YOU SPEND 30 to 40 % MOST OF YOUR TIME AT WORK EACH DAY.

YOU WORK VERY, VERY HARD TO MAKE MONEY.

DON’T YOU THINK THAT IT IS ALSO WISE TO LEARN HOW YOUR HARD EARN MONEY WORK FOR YOU.

As Robert Kiosaki Author of the best selling book RICH DAD POOR DAD said.

” The poor and the middle class work hard for their money.. the rich have their money work for them” — Robert Kiyosaki

An excellent way is to gift yourself the tools and time needed to make your money work harder than you & smile your way to financial freedom. Financial Education is the way learn more and you will see your financial FREEDOM.

What is getting out of the RAT RACE ?

You get up each morning and out for work - Reason: YOU need money to meet your expenses.

What if there was enough money to meet all your expenses ? You are then out of the rat race and on to fast track !!!

Opportunities knock at our door every single moment. But due to our routine, we tend to ignore these opportunities. Learning to open the door to opportunities despite our routine will help us to get out of the rat race and on to fast track. Money does not make you rich, Financial Literacy does.

PS: If you are in a hole stop digging. Free yourself and learn how to get out of the rat race.

Bro. willy

Poverty is not lack of Money; Poberty is the Proof of Misguided Money

2010-01-18T21:14:00.000-08:00

“It is possible to give freely and become more wealthy, but those who are stingy will lose everything. The generous prosper and are satisfied; those who refresh others will themselves be refreshed.”Proverbs 11:24-25 (NLT)

Against great popular thinking, poverty is not the lack of money. Just because you don’t have money doesn’t mean you are impoverished. Many times, the lack of money or what is known as poverty, is the result of years of someone misguiding their money. For some time, the body of Christ has identified poverty with lack of money. But the truth is people have simply misguided their money. Those who are obedient when sowing their money always tend to have more. God is a God of abundance, and He has insight as to where we should sow.

I remember many years ago, when I was just a young boy, hearing a conversation between my mother and father. My father curiously inquired of my mother, “What should we buy - beer or bread?” At that time, we didn’t have enough money for both, so they had to choose between beer and bread. My mother responded, “Let’s buy beer.” It wasn’t that my parents didn’t have money. They just used their money in the wrong way.

1. How do you spend your money? (your income, your 13th month pay, your bonuses)

2. Do you see it as a seed, or simply money?

3. Do you generously give it, or do you hoard it?

4. Does it go toward the things of God, or toward fulfilling the lusts of your flesh?

Where your money goes determines whether you walk in abundance or in poverty. The choice is yours. Poverty is not the lack of money; poverty is the proof of misguided money. God calls us to give a tenth to our church. He also calls us to feed the poor and help those who are less fortunate. He calls us to sow into the lives of others for the good they have done in our lives. The moment we begin to follow those instructions is the moment our days of lack are over. When we focus our money in the right direction, money will increase in our lives. We will reap what we sow and that alone. If we don’t sow anything, we don’t have the right to expect a harvest.Lack is the proof one has misdirected their seed. May God help us today to identify the correct destination of our seed!

(picture courtesy of The Sydney Morning Herald, and to Jaygalang of IMG)

PS: Taking control of your financial future starts with understanding, and understanding begins with Financial Education. Come visit us for FREE training.

Brod Willy

Do You Want To Grow Your Money?

2010-01-14T16:33:00.000-08:00

Making Money is important.
Learning how to Save and Grow your hard-earned Money is just as important.

Listed below are the performances of some of the top Mutual Fund companies in the Philippines today.

MUTUAL FUNDS ACTUAL PERFORMANCES

MUTUAL FUND

2009

Philequity Fund
64.99%

First Metro Equity Fund
53.11%

Philam Strategic Growth
47.41%

Philequity PSE Index
59.17%

Philequity Peso Bond
6.58%

Philequity Dollar Bond
12.39%

Philam Bond Fund
5.52%

Philam Dollar Bond
17.76%

GSIS Fund
36.76%

Do You Want To Grow Your Money?

Learn at The WEALTH ACADEMY Series.

Series 1

Financial Solutions Today
The Six (6) Steps to Financial Independence
How Money Works
The Wealth Formula
How to Build a Solid Financial Foundation

Series 2

Finance & Investment 101
Different Investment Vehicles & Strategies
How to Bypass the Middleman &
Become Your Own Financial Adviser/ Broker
Mutual Funds, Diversification,
Money Cost Averaging, etc

Series 3

Creating Multiple Income Streams
The Different Sources of Passive Income
How to Create Passive Income Streams
New Concepts in Making Good Money

Series 4-12
A Comprehensive Approach to Personal and Financial Success!

For inquiries, contact:
Wilson L. Testa, ECE CTFL
Financial Field Leader

0929 250 4350 / (02) 812 2551 loc 119 look for Raymond Sarrial
img.wealthacademy@gmail.com

or visit as at :
Corporate Office: 3/F, King’s Court Bldg 1, Chino Roces Ave, Makati City

PS: Wealth comes to those who desire and work for it rather than letting things happen.

To lower the risk, and to lower the worries ... start early to be financially literate.

Bro .Willy

More Family Time and reach Financial Goal at the same time, is it possible?

2010-01-13T15:40:00.000-08:00

Want to Reach Your Financial Goals and Spend More Time With Your Family? Just Make the Decision!

Wouldn't it be great to just not worry about money and have lots of time to spend with your loved ones? That's a place in life where just about anybody would like to be at. The sad truth however, is that most people have stressful jobs, and stress even more about paying bills and saving up for retirement. Living day to day like this doesn't really allow for a whole lot of quality family time. But what if you could turn all that around and actually live the life that you want?
As with most people, the most important things in the world to me are my wife and kids. Ever since my wife and I first started our family, I've worked as hard as I could to try and give them a comfortable life and provide them with all the things they deserve. I've done the whole gamut of jobs from manual labor, to customer service, to office work, and even management. All these jobs had the same thing in common - hard work with long hours, and not a whole lot of time off to spend with my family. This is the reality for most people.
I had been providing my family with a decent middle class lifestyle, but was I truly providing everything they needed? It seemed that I was missing sports events plays, and music recitals all too often, and I know my wife often was stressed about how little time the 2 of us had to spend alone. Eventually I started to wonder if I needed to make a change in order to provide more time for my family.
I finally decided enough was enough, and made a plan for myself. There were a lot of small details to my plan, but the main idea was to quit my current management job and have a home based business within 1 year. And to make a long story short, I did it! Today I have my own online business and am making just as much money (actually, a little more) than I did working at my previous job, and the best part is that I make my own hours and get to spend lots of quality time with my family.
The point of this story is that, you can do this for yourself. The most important step is to make the decision to do it! Life is what you make of it, as one of my personal heroes, Napoleon Hill says, "whatever the mind can conceive and believe, the mind can achieve". So what are you waiting for? Get off your butt and make your dreams come true!

PS1: live a wealthy life.

PS2: Visit also www.firstworldpinoy.blogspot.com