Getting Started with

Your Investing Journey

COL Basic Investing Webinar
Recorded on April 8, 2020

Getting Started with

Your Investing Journey
Loraine Reyes
COL Financial Group, Inc.

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 “ Every Filipino
deserves to be RICH

Over Over Listed

”
20 330,000
75
years
billion pesos
2012 & 2013
of successful online PSE Bell Award
in customer assets on Good Governance
investing in the PSE
clients

Who will become financially secure?

THE THE THE
SPENDER SAVER INVESTOR

UNLIKELY POSSIBLE MOST LIKELY

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 3 steps to financial security
1. How do I start my investment journey?

2. What should I invest in?

3. How should I invest?

How do I start my
investment journey?

Learn to save Invest your Be consistent

savings well

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 Pay yourself first

INCOME INCOME INCOME

- EXPENSES - SAVINGS - SAVINGS &
INVESTMENTS
= SAVINGS = EXPENSES
= EXPENSES

Why invest?
How many Big Macs can your ₱200 get you?

2009 2019

₱100 each ₱150 each

Source: www.economist.com

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 The Power of Compounding
₱132M

₱10.5M
₱9.3M

₱2.06M
₱1.09M ₱796K

₱468K ₱218K
₱142K
₱92K

₱60K ₱63K ₱66K ₱69K ₱80K ₱109K

O YR 5 YR 10 YR 15 YR 30 YR 60 YR

1% 9.0% +60K/YR COMPOUNDED STOCK

SAVINGS ACCOUNT STOCK INVESTMENT
INVESTMENT

Disclaimer: Past performance does not guarantee future results

What should I
invest in?

STOCKS!

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 What are stocks?
A piece of a company…

=
1 slice 1 share

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What is the stock market?

COMPANIES STOCK EXCHANGE INVESTORS

Initial Public Offering 267 Listed Companies Shareholders

(IPO) 129 Stockbrokers

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 How do I earn?
PRICE APPRECIATION DIVIDENDS

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Why stocks?
4% to 16%

Inflation Rate
3.0-3.2%

1.8% to 1.9% 1.3% to 1.4%

Stock Market Time Deposit Savings

Based on 10yr annualized returns for available data ending in Jan 2019 to Mar 2020
Disclaimer: Past performance does not guarantee future results

…because stocks outperform in the long run

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 Two ways to buy stocks
Individual Stocks Stock Index Funds

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PSE Index (PSEi)

30 stocks selected by the PSE

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 Stock Index Funds

FUND MANAGER

POOL OF INVESTORS POOLED FUND INVESTMENTS

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Stock Index Funds in COL

CODE FUND NAME
XALSIF Philippine Stock Index Fund (BPI)
XPEIF Philequity PSE Index Fund
Sun Life Prosperity Philippine
XSLIF
Stock Index Fund

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 Two ways to buy stocks
Stocks Stock Index Funds
Professional fund
Pick the right stock on
manager buys a fixed
your own (DIY)
basket of stocks for you

Control & flexibility Needs less monitoring

Participate in long-term Tracks superior long-

growth of a company term growth of the PSEi

You can easily have both.

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How should I invest?

Three Key Guidelines

1 2 3

Invest for Invest using Invest regularly

the long term diversification using a plan

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 Invest for the long term
PSEi (Jan 1987 – Apr 2020)
10000

9000

8000 P1 invested in 1987 is worth P12.8 today

7000
P 10K = P 128K
6000
P 1M = P 12.8M
5000

5,650
4000

3000

2000 440
1000

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Invest using diversification

Across different companies Across different industries

XYZ
GHI

LMO

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 Invest using diversification

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"By periodically investing in

an index fund, for example,
the know-nothing investor
can actually outperform
most investment
professionals.”

Warren Buffett

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 Investing regularly is the key
All in one go or buying gradually over time?

Buy gradually over time!

(easier to sustain, less emotional pain)

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Peso-Cost Averaging Strategy

Investing a Fixed Regular Over a long Stock index

amount of intervals period of time funds or in good
money quality stocks

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 Peso-Cost Averaging Strategy
INVESTING IN A STOCK INDEX FUND

Month 1

Invest ₱5,000 in a stock index fund 6

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Month 2

Invest ₱5,000 in a stock index fund

4

Effectively
Month 3 3 keeping your
Ave Cost per Share average cost
Invest ₱5,000 in a stock index fund below market
* Following Board Lots Limits price

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Peso-Cost Averaging Strategy

BUDGET: ₱25 to buy ballpens

How many can How much did

you buy? you spend?

MONTH 1: Pens cost ₱5 each 5 pens ₱25

MONTH 2: Pens cost ₱7.50 each 3 pens ₱22.50

MONTH 3: Pens cost ₱12.50 each 2 pens ₱25

TOTAL 10 pens ₱72.50

How much did you pay for each pen? ₱7.25

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 Peso-Cost Averaging Strategy
stock price
35
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My purchases over time difference
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is your
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profit!
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25
23 your average cost
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19
17
Mar-08

Nov-08

Nov-09
Mar-09

Mar-10
Jan-09
Sep-08

Sep-09

Jan-10

Jul-10
Jul-08

Jul-09
May-08

May-09

May-10
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COL Easy Investment Program (EIP)

Benefits of COL EIP

One-time set up

1 Auto email reminders

Convenient and transparent

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 COL Easy Investment Program (EIP)
Creating an automated investment scheduler

Choose stock index funds

Enter your amount

Select frequency (weekly, monthly,

quarterly, semi-annually)

Select start date

AUTO Choose automatic as mode

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Your road to financial independence

How do I start my What should I invest in? How should I invest?

investment journey?

Learn to save, Consider investing in stock Use COL’s EIP feature to

invest your savings well, index funds or your automate your regular
and be consistent favorite stock picks investments

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 Do something today that your
future self will thank you for!

BUY

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Thank you!

@colfinancial

helpdesk@colfinancial.com

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Disclaimer: This presentation and all content therein are owned by COL Financial Group, Inc.
Editing or modifying the contents of this presentation is strictly prohibited. Please feel free to share
this presentation strictly for your personal, educational, and non‐commercial uses only.
 Getting Started with
Your Investing Journey
COL Basic Investing Webinar
Recorded on April 8, 2020

35

Disclaimer: This presentation and all content therein are owned by COL Financial Group, Inc.
Editing or modifying the contents of this presentation is strictly prohibited. Please feel free to share
this presentation strictly for your personal, educational, and non‐commercial uses only.