EntrePinoys Atbp.

The lending industry thrives better in times of financial crunch. To cope with the crisis, people try to stretch their budget and augment their income. Many households put up sari-sari stores; family members look for sidelines, try working abroad, or simply try to borrow money. To raise the money to finance these activities, many of them go to lending firms instead of the commercial banks. This is because lending firms are more lenient in their requirements, offer lower interest rates, and process loan applications faster. Entrepreneurs can set up a lending business to take advantage of this demand for easier credit. Read the rest of this entry »

Suppose you have P500,000 in extra cash that you want to invest. Where will you place it? The choices are many — bank deposits, mutual funds, stocks, government and corporate bonds, etc. — but choosing which among them is tricky. Which will give the best and least returns? Which is the least and most risky? Deciding will not be easy. But you must be guided by a rule of thumb, that your return must be higher than the inflation rate to offset any erosion in the value of your money. Another option to consider is special deposit account or SDA. Read the rest of this entry »

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The power of mutual funds lies in its ability to pool together funds from so many different investors. Imagine a thousand investors each with P5,000 to invest who decide to pool their funds together. That’s already a pool of P5 million! Now imagine that instead of just investing P5,000 each, some investors put in P10,000, P100,000 or even P1,000,000. The size of the collective pool would even be bigger. And when it comes to investing, there is strength in numbers. P5,000,000 can gain better access to more diversified investment instruments than P5,000.
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What is a mutual fund?

A mutual fund is an investment vehicle that pools together the funds of various investors—both individuals and corporations. The pool of funds is managed by a professional fund manager who uses the funds to create a diversified investment portfolio consisting of various investment instruments such as stocks and bonds.
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