Investing in BDO Equity Fund in Layman’s Term [Part II]

Hello brothers and sisters! hehe 😛

Anyway, this is to serve as a continuation to my old article Investing in BDO Equity Fund in Layman’s Term . Please feel free to read through the article as I have posted some technical know-how in BDO Equity Fund Investment. You may also read relevant details through the BDO Site, and Kuya Fitz’ very helpful blog. The historical and current NAVPU may be obtained from or

Back to the story :P.

I have then decided to re-invest the money I withdrew from my initial BDO Equity fund investment, which was PHP 11,263.049, last March 5, 2012. The NAVPU at that time was PHP 292.97. Divide the capital [PHP 11,263.049] by its NAVPU [PHP 292.97] and you’ve got 38.44 units .

With 38.44 units in hand [worth was bought at PHP 292.97/unit], I’ll continue to watch how my investment is doing. As of its latest posting [June 18, 2012], the NAVPU is at  310. 81 [please see below image]. Yehey! The price is steadily growing! 😀

Image captured from

As I have advised in my older article, below are my tips for you:

  • Always watch the growth/drop in the value of your units [NAVPU]. You may check or from time to time.
  • If the NAVPU goes down, be patient. Wait for it to grow until it is above the NAVPU you have purchased in order for you to earn from your investment.
  • The more you know, the lesser the risk; The lesser you know, the greater the risk. In case you have decided to invest, I suggest that you take time to  know what you are going for- before jumping in, and also during the duration of your investment.

In addition to the above tips I have mentioned in my old article [which I have learned during my second take in investing – see, experience is a great teacher ;)]:

  • Proper timing is important. Buy units at a time when prices are low and sell units at a time when prices are right.
  • Re-invest your money. Make them work for you.
  • Remember that while you are investing, you are also risking. Take time to study what you are investing in.

So this will be it, guys. I’ll keep you updated on the progress of my investment. Update: Click here to see part III For now, I’d like to forget that I have money invested in Equity Fund. I may just be surprised waking up one day only to realize that I have money invested years ago and find out that the value of my money has grown big time! =D

Share your thoughts! Feel free to comment below.




Update (02/14/2015): I have published this article, “When Should You Invest in an Equity Fund?”, to address one of the most ‘in demand’ questions my viewers have. Enjoy and happy investing!

***Above explanation is for illustration purposes only. Please note that I do not endorse investing in these funds as this will now be based on you, the decision-maker, to determine if investing in these funds will be in your best interest. Please also read through the BDO site for more relevant and accurate information regarding its products and services.

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  • mandy

    Hello its me again. I really love these two articles that you wrote. Now that I am really tempted to try investing at bdo. My question now is there a service charge when you invest? From your first article how much is the service charge from 11,263.049 when you withdraw. I like the idea of withdrawing money from the bank and reinvesting again. Its like playing at the stock market having BDO as the broker 😀 😀 😀 By the way here in my place i don’t have a single idea where can I find a broker 😀 :D:D

    Is there other investment options available in bdo bank that will work even if you don’t check your account and will produce a yearly income like time time deposit but in terms of investment. Sample i invested 10k in 2010 and it has a dividend of x% yearly. Do they have such service. Its like time deposit but has higher percent income yearly.

    Thank you and more power to you. Ill share this article with my friends. 🙂 🙂 🙂

    • Hi Mandy,

      Wow thanks for your comment. Yes, whatever investment product it may be, I suggest we start while we are still in our youngest. As the saying goes, the best time to start investing is now.

      Regarding your first question: Technically, there is a service charge – I think they call it management fee. However, they already factor in the service charge in the NAVPU, which means you mostly feel that there is no service charge, because you withdraw your funds based on the NAVPU. No deductions will be made by your bank after you withdraw. You get the whole value of your units multiplied by the current NAVPU.

      In my case, when I withdrew PHP11,263.049, there were no deductions made by the bank. This is because the management fee is already incorporated in the NAVPU as the fund manager has explained to me.

      Just to clear things out, I initially withdrew my funds because I just wanted to test things out. What I mean is, I don’t recommend myself playing the ‘stock market’ strategy wherein you invest and withdraw as a cycle (although you actually can do it), as I tend to be impulsive and reactive to changes in prices (like what happened when I tried out online Currency Trading which I will write about soon :P) Long term strategy is best in this type of fund.

      On to your second question, yes there are other investment options in BDO and even other banks (BPI, etc. – they offer almost the same investment products, decision making depends mostly on their historical performance. The last time I checked, BDO outperformed BPI in its fund management, reason why I chose BDO to invest on initially) which are like time deposit (low risk, steady income).

      One BDO investment product with this nature is the BDO Peso Money Market fund. As it states in its website, the Fund aims to preserve capital and generate income from low-risk fixed-income securities with a portfolio weighted average life of not more than one (1) year. This means that you almost do not need to check on it on a regular basis as the risk is low, however the returns tend to be low as well. One drawback I can see is that the minimum investment here is PHP100K.

      By the way, one more investment plan I know of which is flexible and can be easily added with additional investments each month is the BDO Easy Investment Plan (EIP). It is very convenient for those who would want to automatically deduct their desired investment amount from their monthly paycheck (minimum 1K).


      Thanks again Mandy and thanks too for sharing this with your friends 🙂


    • Hi Mandy,

      By the way – I recently just posted Part III of my journey in BDO’s Equity Fund. 😛

      Hope you like the story.


  • mandy

    wow id like to hear more about online Currency Trading. can’t wait for that article to be publish.heheh 😀 😀 😀
    Notify us soon. by the way how can we subscribe to you blogs so that we can be notified if there is a new article that can interest us?

    GOD bless FRUSTRATEDBILLIONAIRE and more power..

    • Hey Mandy,

      Your wish is my command – my post about online currency trading is now available here

      Thanks for your comments, it gives me the drive to post more articles on more topics. 🙂

      You may follow me on WordPress where you will receive an email whenever there is a new post. Please also like me on Facebook and follow me on Twitter. You’ll also get notified via Facebook or Twitter whenever there is a new post, plus you’ll be able to conveniently share these articles to your friends. 😛
      Links to these applications are available on the right pane of my website –>

      Again, thanks so much Mandy. May God Bless you always. 🙂


  • hazel

    Hi, I read your articles and I’m also thinking on trying investing in UITFs to see if money can also work for me :). I have already read various articles and information relating to personal finance just to make sure I’m doing the right thing and I’m on the right track before I jump into investing. So, I just want to ask something, just for clarification, in your chosen BDO investment product (BDO Equity Fund) you only need to invest your money and you dont have to pay any monthly contribution (say the 1k monthly contribution)? you just have to watch the NAVPU goes up or down before you withdraw your money? does your share increases or the shares that you bought with the money that you invested (say the 11k that you invested) just stay the same? how will you earn more on this? please enlighten me..thanks a lot..

    • Hi Hazel,
      Thanks for visiting my site. 🙂 you are correct-there’s no need for monthly contribution (you may do so if you want to,but you have to withdraw your fund fist and their reinvest for you to add money to your investment), and you have to follow the fluctuation of the value of your investment. You can easily follow the charts by Googling your investment option. As for your last question, yes, the value of your money increases/decreases depending on the performance of the fund. What you earn is dictated by the NAVPU when you withdraw your investment, so it is wise to withdraw when the price is high.

      I hope I have answered your question well. Thank you!


  • grace

    hello po. thanks po s blog n to. ask lng po, araw araw po b may loss or gain and pera mo? or if mareach mo lng ang every 10k n mainvest mo bago mo makita ang loss or gain mo? thank po, medyo magulo ata question ko…

    • Hi Grace,

      Happy New Year and thanks for your comment! 🙂

      I think I got your question there, and to simplify the answer, yup, araw araw may loss or gain ang ininvest mo at marerealize mo ung loss/gain kapag nag winithdraw mo na ung investment mo (kapag mas mataas ang value nung time na nag withdraw ka kesa sa time na una kang naginvest ng pera, makukuha mo ung kinita ng pera mo. pero kapag mas maliit ang value ng fund mo nung winithdraw mo kesa nung una mong pinasok ang investment mo, posibleng mas maliit pa sa pinasok mong pera ang makukuha mo). Let me know if I got your question right. 🙂

      For our international readers: yes, your fund value may incur losses/gains on a daily basis and you will realize that loss/gain once you withdraw your investment. When you withdraw at a time when your fund value is greater that its value when you initially invested your money, you will get the earnings of your investment, however, if you withdraw your money at a time when your fund value is lesser than its value when you initially invested, possible that you will only be able an amount that is smaller that what you originally invested.

      As an added note, above point is the reason why you should not invest money that you may eventually need, especially in an emergency wherein you’re forced to withdraw your investment even if the fund value is low when you can actually wait it out so that you can wait for your fund value to grow and recover from its losses. Have an emergency fund for this purpose (about 6 months of your monthly living cost) before you invest in anything to avoid this situation.


      • grace

        thank you po sa answer, clear po ung answer Godbless

        • You’re very welcome Grace 🙂 I hope you like my FB page as well so we can help spread awareness 🙂 thank you


  • renante ibo

    Tnx for this very informative post about easy investment plan. Its really a big help for us begginers..

    • You’re welcome bro and thanks for commenting. 🙂 I hope this inspires you to take that next step in investing. Please like my FB and Twitter as well hehe.

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  • Maria

    hello ..Thanks for the sharing your knowledge about this type of investment ..just wanna asked do i need to go to the bank and redeem the said amount or it will be automatically goes to my account.

    • Hi Maria, you’re welcome! 🙂 If in case you wish to withdraw your money, you’ll need to go to the bank and present your Certificate of Participation (COP), and sign some documents pertaining to the withdrawal. From thereon you can have the bank deposit your money to your savings account, or you can choose to claim the money in cash. Thanks for commenting!