Peso Korner

Peso Korner

Sunday, September 27, 2015

No capital to start a business? Check if DROPSHIPPING is for you!


Looking for a business opportunity with a minimal capital outlay?  Quite impossible years ago, but with today's technology? Nothing is impossible anymore.
Dropshiping

Have you heard of DROPSHIPPING? I've been browsing online a few days back, looking for things and stuff I can sell in my 2 online shops then viola, I stumpled upon "dropship", curious what it meant so I googled it and and got this from Shopify: "  Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product."  And my eyes sparkled! 


All the issues we have with retailing are now addressed by dropshipping, no need for capital, no need for inventory! Just your marketing skills and a reliable procedure.

All you'll be needing in this type of business:
  1. A stable internet connection;
  2. Your marketing skills;
  3. An online marketing tool (could be an fb page, instagram, twitter, website where you can market the items); 
  4. An online banking facility to conveniently transfer funds to the manufacturer's account (of course you have to ask the manufacturer/company what payment methods are available most of them accepts BPI and BDO and both banks have online transfer facilities, you just have to enrol the details at your branch for the first time and next is easy breezy real time fund transfer);
  5. Word of honour (when your customer pays, be sure to honour their purchase and complete the transaction with your manufacturer /supplier and arrange the delivery to your buyer). Believe in KARMA! Bogus sellers are a big NO NO! Take care of your reputation as an online seller!
  6. Guts (you can do it! the process is not that difficult!). 

Benefits of Dropshipping:
  1. Photos of the products are readily available from the manufacturer for your use ;
  2. No need for inventory on hand; 
  3. Less hassle on packing and shipping the items;
  4. You'll have your profit outright for every transaction; 
  5. Your only job is just to sell the items and take orders.

So, is dropshipping for you?


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Friday, August 28, 2015

SEC Warning to Recruiters, Sellers and Offerors of Unregistered Securities



For the nth time, the Securities and Exchange Commission has released another advisory against continuous investment scams in the country in spite of their effort to curb these illegal activities. 

It is really so disappointing because the investors are aware of the danger they are facing, they are just blinded by the promise of huge returns. Out of desperation, they are still holding on that they will get rich fast as promised by their recruiters. They only cry foul once victimised and the cycle goes on and on.

The last time I shared about a SEC Advisory on Facebook, one investor even commented that the owners of the company are already fixing their issues with the SEC and of course the investors believed them. As if it's that easy. 

How to assess if a company is engaged in a pyramiding scam or not? If the earnings are primarily through recruitment and not the product, then it is a scam.  You have to understand that the earning  the uplines are enjoying are coming from the investment of the downlines, so once this stops, once the investors start to dwindle, most of the downlines will not have their money back. 

Here's a copy of the SEC's advisory:


Monday, August 10, 2015

Best Performing Mutual Funds in the Philippines

Best performing mutual funds in the Philippines as of August 10, 2015

Investing in stocks involves intensive research and time. If you don't have the time and the expertise, mutual fund is the best option for you.  

A mutual fund is a company that pools the fund of investors and then a team of professionals or what they call fund managers are hired to invest the pooled funds. Investing in mutual funds provides professional expertise and instant fund diversification.

There are so many types of funds available, all you need to start is gather information regarding your choices, assess your investment goals and risk tolerance.  Most mutual funds fall into four categories: money market, stock funds, bond funds (fixed income funds) and balanced fund which is the combination of the three. 

I pasted below the summary of mutual fund performance as of today, August 10, 2015.

Stock Funds:
Fund Name
5 yr. Return (%)
3 yr. Return (%)
1 yr. Return (%)
Philequity Fund, Inc.
17.84%
12.73%
5.73%
Philequity PSE Index Fund Inc.
17.04%
12.73%
7.10%
Philippine Stock Index Fund Corp.
16.96%
13.33%
8.26%
First Metro Save and Learn Equity Fund,Inc.
14.86%
8.21%
7.56%
Sun Life Prosperity Philippine Equity Fund, Inc.
14.17%
8.78%
6.37%
Philam Strategic Growth Fund, Inc.
12.42%
4.96%
3.68%
ALFM Growth Fund, Inc 
12.41%
7.99%
5.32%
ATRKE Equity Opportunity Fund, Inc.
12.32%
9.13%
-0.49%
United Fund, Inc.
6.49%
3.82%
6.91%
ATR KimEng AsiaPlus Recovery Fund, Inc.
-1.37%
2.14%
-6.31%





Balanced Fund:



Fund Name
5 yr. Return (%)
3 yr. Return (%)
1 yr. Return (%)
ATRAM Dynamic Allocation Fund, Inc.
12.26%
8.94%
0.62%
ATRKE Philippine Balanced Fund, Inc.
10.70%
8.54%
1.73%
Bahay Pari Solidaritas Fund, Inc.
14.43%
6.80%
5.75%
First Metro Save and Learn Balanced Fund Inc.
11.78%
4.48%
0.26%
NCM Mutual Fund of the Phils., Inc
9.87%
2.70%
3.37%
PAMI Horizon Fund, Inc.
9.62%
2.04%
3.59%
Philam Fund, Inc.
10.34%
2.86%
3.51%
Sun Life of Canada Prosperity Balanced Fund, Inc.
11.19%
6.63%
5.33%





Fixed-Income Fund:



Fund Name
5 yr. Return (%)
3 yr. Return (%)
1 yr. Return (%)
First Metro Save and Learn Fixed Income Fund,Inc.
9.86%
8.63%
2.84%
Cocolife Fixed Income Fund, Inc.
7.29%
5.38%
5.45%
Philequity Peso Bond Fund, Inc.
7.27%
6.93%
2.69%
Ekklesia Mutual Fund Inc.
6.46%
4.56%
3.23%
Philam Bond Fund, Inc.
6.20%
4.75%
4.47%
Sun Life of Canada Prosperity Bond Fund, Inc.
5.42%
3.60%
4.06%
Prudentialife Fixed Income Fund Inc.
5.36%
5.31%
2.72%
ALFM Peso Bond Fund, Inc.
5.07%
3.46%
2.87%
Sun Life Prosperity GS Fund, Inc.
4.76%
2.17%
3.21%
Grepalife Bond Fund Corporation
4.17%
4.64%
2.20%
Grepalife Fixed Income Fund Corp.
3.83%
2.78%
4.34%




Money Market Funds:



Fund Name
5 yr. Return (%)
3 yr. Return (%)
1 yr. Return (%)
ALFM Money Market Fund, Inc.*
2.36%
1.74%
1.37%
Philam Managed Income Fund, Inc.*
1.14%
0.70%
0.70%
Sun Life Prosperity Money Market Fund, Inc.*
0.21%
0.05%
0.52%

*Data taken from the website of PIFA (Philippines Investment Funds Association)

You have to understand, however, that every investment involves risk.  You have to measure your risk tolerance. If you want something "safe" and you are not willing to take so much risk then Fixed Income Mutual Funds or Money Market Funds is best for you. Your problem here will be inflation. Just check the 3 money market funds above, the 5 year return is even lower than the usual 3% inflation rate. 

Higher potential investment involves more risk just like opening your own business, if you are ok with this, then you should invest in stocks.  If you want to be safe and accept  risk at the same time, balance fund would be good for you, "Balanced" means a combination of investment in stocks and fixed income funds.

Key Points to remember when investing in Mutual funds:
1) Mutual funds are not insured by the PDIC since this is not a deposit account.
2) Investing in mutual funds involves cost since you have to pay the company for their professional expertise. Even at a loss, you are still obligated to pay the fees.  Make sure to make a comparable rate of existing fund companies before you make a decision.
3) You won't have a "say" or control over your funds, you cannot in any way influence the fund managers regarding where to invest the funds. Your only participation is to put in your funds and give them full control. 
3)Past performance is not an indicative of future performance. There are so many things that affect the performance of stocks that are beyond the control of the fund managers.