When Should You Invest in an Equity Fund?

In my previous posts on my experiences in investing in BDO Equity Fund, it came to me that through their comments, the most “in demand” questions by my readers are ‘When should I start?’ and ‘Should I wait for the Net Asset Value per Unit (NAVPU) to drop before I come in?’ and ‘What if the NAVPU drops shortly after I came in?’.

Before I give my answer, I am assuming that you are investing for the long term. To be honest, short term investments are very risky as the market tends to move a lot and you tend to get caught in the middle of a downfall of the NAVPU rate when the time of your short term investment is up. Not saying that I’ll never try short term investments again, but I myself tend to be very emotional when it comes to short term trading as seen in my previous post on Forex, so I tend to react to every movement in the charts – which is not good.

So here goes my answer: the best time to start your investment is NOW. Yes, now. Just do it. Now! Try to go to Bloomberg.com and see the historical performance of any BDO and BPI UITF you’d like to review. Check the performances of each from their conception (start of the fund) up to the present. You’ll notice that there is generally an upward trend although there is a spike/fall anywhere in the middle of the charts. Then try to think long term: if you invest now, will you earn a substantial profit, say, 20 years from now? Chances are, the answer is yes. You see, past performance is the best indicator of future performances.

BDO and BPI Equity Fund

Why I give NOW as an answer

Reasons most people do not invest in the NOW:

  • Waiting for the right time
  • Insufficient funds
  • Afraid of risks
  • Waiting for others to come in first (to serve as a lab rat and test the waters for them :P)

To tell you honestly, I’ve had colleagues and friends telling me that they regret not investing their money when they were younger. Know of the saying, “Time is money”? Look again in the charts above and you’ll see that proper timing is not really that important, especially if you are investing on a long term basis.

In the case of insufficient funds, there is always the more flexible UITF option: BDO’s Easy Investment Plan (EIP) and BPI’s Regular Subscription Plan (RSP) wherein you can set a minimum amount (min. PHP 1,000 per month) to be deducted from your monthly payroll.


  • Invest in the long term
  • Set up an emergency savings fund – if you have an emergency savings fund (I suggest 6 months of your monthly income), you won’t be forced to withdraw your ‘immature’ investment when you need immediate money