"He who can be entrusted with little can also be entrusted with bigger things."
Pilifinance hits 2 birds with one stone (+ 3 bonus ideas!)
In this article, Pilifinance tackles 2 main investments you can actually buy, and 3 other investment ideas to help you think out of the box.
#hanapbuhay
[Disclaimer: Pilifinance does not endorse any of these investments, does not guarantee safety of your investment. This article is written mainly to inform and give new ideas on new ways to invest.]
LTNCDs or Long-term Negotiable Certificates of Deposits are negotiable certificates of time deposit or long term bank deposits.
This offering has a duration of 7 years, with a yearly interest rate of 3.5%.
Minimum amount of investment is P50,000 and in tranches of P50,000 therearfter.
These are tax-exempt to the general public if held for until maturity or more than 5 years.
This time deposit is insured by the Philippine Deposit Insurance Corporation up to P500,000 per person. LTNCDs cannot be redeemed before maturity, but may be sold in the secondary market.
Deadline: This offering is available to the public until September 12, 2016.
Pilifinance Quick Computations:
After 7 years, you will be given back your principal that can earn up to 24.5% interest.
That means, your P50,000 will earn P12,250 in 7 years or P1,750 per year.
Pilifinance Insights:
Metrobank is taking advantage of the current low interest rate environment to increase liquidity, while locking in the low-interest rates.
Hence, this low interest rate applies to you the money lender. Lower interest rates mean lower income.
The interest rate environment in the Philippines fluctuates from around 2% to 12%, but take note that no matter how high inflation and interest rates go, interest in LTNCDs usually are locked to the rate at offering. Pilifinance thinks the main risk of this investment, is inflation rate risk.
However, this opportunity may be appropriate for retirees or more conservative folks sitting on a huge pile of cash, as a way to diversify their retirement portfolio.
For more information, visit your local Metrobank branch. Reminder, this opportunity is up until September 12 only.
Source: http://business.inquirer.net/214241/metrobank-offers-long-term-deposits-at-3-5-pa
2) Petron Corporate Bonds
Another option, corporate bonds offered by Petron. These are loans to the public backed by the issuing company.
Offering date is on October 10-14, 2016.
There are two maturities/tenors:
-Series A: 5 Years, tentatively 3.5% to 4.25% per year
-Series B: 7 Years, tentatively 4.125% to 4.625% per year
(These rates are before taxes.)
Minimum investment: P50,000
Multiples of P10,000 for additional investments thereafter.
To buy, visit your nearest branch of any of the underwriting banks:
Security Bank, BDO and BPI.
Banks may also accept reservations in advance of the offering date.
Pilifinance Insights:
When buying bonds or stock or securities of a company, it pays to study the company's latest balance sheet and financial statements. The Philippine Rating Services Corporation rates Petron as a AAA company, meaning these should be among the safest bonds offered by Philippine Rating Services Corporation. However, these are not bank deposits and are not guaranteed by the PDIC. These bonds may default and you may lose your investment in the event the company goes bankrupt. Aside from default risk, there is also the inflation risk as tackled above.
3) PhilCrowd.com: Franchise Crowd-funding Cooperative
Ever wanted to profit from franchises like Potato Corner or 7-11 but don't have the cash to fund the entire operation from scratch? PhilCrowd Cooperative offers a solution.
From P25,000, you can now participate in owning your very own 7-11 store or other available franchises.
Plus one-time membership fee P2,500.
For more information: visit http://www.philcrowd.com
Pilifinance Insights:
Whenever you part with your money, especially in non-conventional institutions like big banks and the well regulated financial markets,
It is impertative to practice DUE DILIGENCE/Do your research.
Before you part with your money, study all the details of the investment proposition:
How exactly are you going to get back your money?
How difficult is it to encash or liquidate your investment?
Can you encash your investment at any time or is there a holding period?
Are there penalties and additonal fees for early redemption?
What is the projected ROI or return on investment?
How long will it take before you can earn it?
Study the financial statements of the corporation or cooperative.
Gather reviews and feedback from other members or investors.
Check the legitimacy of the company or cooperative.
Foresee all possible risks and problems like financial problems in the cooperative, people running away with your investment, possible scams.
Start small. Invest only what you are willing to lose.
Pilifinance has very limited knowledge of PhilCrowd Cooperative we leave it to you to do your due diligence. This is not a transaction with a big company, bank or stock market so the risk of losing your investment is much higher.
Since this is a cooperative set-up, it is possible also that you might not have control of the day to day operations of the franchise, the site selection and other factors.
4) "Lending Club" Corporation
Lending Club introduces peer-to-peer lending, brokering or pairing borrowers and investors through America's largest online lending marketplace.
Although initially, it might remind you of junk bonds or loans that default, Lending Club boasts of a facility that not only screens borrowers, but also spreads your investment into fractions of loans (spread to about 100 different loans) to diversify your portfolio and protect you from default. Currently it is available to USA residents only.
I have heard that Millionaire Acts author Mr. Tyrone Charles Solee maybe organizing a local chapter who invests in this, you may contact him.
5) Citihub Social Impact Rental Business
As featured in ANC Market Edge with Cathy Yang, co-founder Nikki Yu presents this temporary housing concept for low-income commuters in Manila who need a roof to sleep under over the work week.
Citihub uses container crates re-engineered into dormitory-like shelters. The idea is similar to the capsule accomodations in Japan. The rent is currently pegged at P57 a night.
Kapandesal Multipurpose Cooperative is the proprietor of the business. You must apply for membership in order to invest, but
For a minimum investment of P50,000 you will be able to participate in this REIT (Real estate investment trust) -like arrangement.
Source: http://news.abs-cbn.com/business/08/15/16/have-p50k-to-invest-citihub-offers-20-25-pct-annual-rent-income
For more information visit: http://www.citihub.com.ph
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