Thursday, February 17, 2011

The BDO Easy Investment Plan (EIP)

Hi! Thank you for dropping by.

If you have time and interested about investing in the stock market or learn more about personal finance, i suggest you start here

Also as a further learning, you may want to read my previous posts on mutual funds.

Now, about the BDO Easy Investment Plan
The BDO Easy Investment Plan (EIP)
The BDO Easy Investment Plan is a "saving and investment" program whose objective is for an individual investor to attain his financial goals through the twin habits of regularly saving and investing.

(Keywords: regular savings and investing)

Under this arrangement, an investor enrolls his savings,checking or payroll account in a BDO automatic debit facility wherein a fixed amount/s (with a minimum of Php1,000.00) per month is/are deducted for the purpose of immediately investing in selected BDO UITFs. Every time the market value of his UITF investments reaches the minimum amount of Php 10,000.00 investment required for the selected UITFs, he is issued a Confirmation of Participation (COP) which converts his EIP contributions into regular UITF investments. As long as he is enrolled in the program, the process of saving, investing and issuance of COP continues automatically on the selected contribution dates.

(Before proceeding, would you consider investing in the Philippine Stock Market? It is similar with BDO EIP but you have more control on what companies to invest in. The concept is similar which is called peso cost averaging)

Unit Investment Trust Funds
Unit Investment Trust Funds (UITFs) are open-ended pooled trust funds made available to investors through units of participation which are valued on a marked-to-market basis. UITFs empower the retail investor since they require relatively small minimum participation amounts yet provide equal access to higher earning investments not readily available to small investors because of the sizeable lots required. BDO's wide selection of UITFs allows clients to choose a fund suitable for their particular stage in life, investment objectives, time horizon and risk profile. (read more)

For an enrollee in the program, the EIP has become a facility to help him to regularly set aside funds for investment to meet multi-purpose needs in the future, such as funding a wedding, children's education, construction of a home or retirement, etc. It also gives him an affordable access to the services of the BDO professional investment managers who keep constant watch over the BDO UITFs.

The EIP espouses the investment precept that the sooner an individual investor begins investing, the more time his money can grow. Investing even in small amounts when done on a regular basis and early on, can produce considerable rewards over the long term. Through the EIP, he can experience the power of "compound interest" which refers to interest earned on principal plus interest that was earned earlier.

Another advantage of the EIP is that it enables an individual investor to ride out market movements through "cost averaging." Investing fixed amounts of contributions at regular intervals over a long period of time will build his portfolio one step at a time, regardless of market conditions, effectively averaging costs over time. In short, through the EIP, he will be able to invest without worrying about monitoring market movements and timing his investments. This strategy also mitigates the risks associated with investing lump sums at a wrong time and bearing the consequence of the market losing value shortly after making the investment.

Currently, selected BDO UITFs, particularly those which are best for investors with a longer term investment horizon, are available for the EIP.

Here's how to join the EIP, in just three easy steps:

1. Fill out the EIP Application Form and enroll your BDO Savings/Checking/Payroll Account in the EIP at any BDO branch.

2. Decide on the following details of your contribution:

     • Amount: Minimum of Php1,000.00 per contribution

     • Frequency and schedule: Once a month (5th, 10th, 15th, 20th, 25th or the 30th)
        or Twice a month (every 5th & 20th, 10th and 25th, or 15th & 30th)

3. Choose what type of UITF is best for you: BDO Fixed Income Fund, BDO Peso Balanced Fund or the BDO Equity Fund

Rush to your nearest BDO branch today!

For inquiries, please call Trust and Investments Group at 840-7000 locals 4265, 4244, 4255 and 7032 or send an e-mail to

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