Financial Advisors congress was brought to us by the Registered financial planning institute of the Philippines, the biggest event gathering of financial advisors in the Philippines. This is the first part of the nine series of my key takeaways from different speakers.
The road to being financially savvy never stops and the best is yet to come in the financial industry. While the mighty economies are falling, the emerging tiger like the Philippine is continuously growing than ever before. What do you do while these things are happening and what do you advice to your prospective and existing clients? As a financial advisor and evangelist I’ve seen a lot of companies innovating their products to gain loyalties when it comes to their brand, but I believe that this is going to help everyone in reaching financial freedom to all Filipinos. COL Financial made a strong move when they took the legendary Chief Investment Officer Marvin Fausto under their wings. These are my take home nuggets from the men behind the new program.
Creation of Funds supermarket – The Mutual fund market today in the Philippines is consist of 233 billion pesos with 290 thousand investors as of 2014. The one stop shop concept for best mutual fund companies in the Philippines will solve the issues of inconvenience to those Filipino investors especially for those people who have tons of funds and hate banks because of the low return. The good part on your end is you don’t need agents anymore to sell you this funds. You can easily open an account and pick funds that suits your needs and risk profile. Disrupting the old process wherein you need to deal with agents before and replacing it with an automation will cut cost effort and time. It is also the best way how to think ahead among the competition that’s why they are bringing this to help you simplify the complex system of investing. Clients will experience adapting to digital world with no front end fees. In conclusion, financial literacy with a really good vehicle will bring you to the advantage.
Col financial made an outstanding system to all potential client with great partnerships from the biggest investment houses in financial industry today. The middle class society is growing with the help of IT- BPO industry and remittances from our OFW’s but the target market of COL is to also include those belong from the low income bracket. You got no excuses now to save and invest in equities, bonds, money market fund because you get an efficient tool as low as 5000php. You can practice peso cost averaging and compounding interest with one goal; financial freedom. It also means more money invested leads to more projects, more business running end goal is economy rising. I recommend you to continuously plan and ride the wave, begin with the end of mind so you can win long term.
Non stop shop for everyone – As we increases our financial I.Q.s and discipline in managing our finances, you want a guide or a compass in the country today. There’s a recent study conducted that by attending financial seminars only 6% of them improve their behavior towards finances. This was revealed to us by (Source: Fernandez lynch Neyemete) so whenever you received your salary make it to a point you buy money regularly However, with an efficient tool and strategic planning, risk mitigation will be highly effective towards a strong solid return.
Effective dashboard – The COL program will have a very comprehensive table of data. It gives you insights on where and how to invest in a specific funds. You can base your investment decisions base on the following:
- Risk rating – This range from 1 as highly conservative to 8 for highly aggressive investors. The risk/reward trade off will help you finding your investments that will suit your risk profile immediately.
- Historical Returns since inception – You want to figure out the historical performance of the funds from YTD, 1yr, 3yrs and 5 yrs. This will also give you the highlights and low lights of the funds.
- Standard deviation volatility – For example, a volatile stock (speculative companies( will have a high standard deviation while the deviation of a stable blue chip stock such as Jollibee and Ayala Corp will be lower.
- Sharpe ratio – Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return. Investors should watch for this specially If you like to see a better return.
- Expense ratio cost of operating fund – We are not only talking about the management fees but we also include the annual fees recordkeeping, custodial services, taxes, legal expenses, and accounting and auditing fees and marketing.
- Expert opinion in a fund fact sheets – This will be updated everyday since Marvin is the founder of the Fund managers association of the Philippines he will see to it that he will give us insights how they strategize from Fund manager experience.
Our country is moving into a fast phase growth, now that an effective tool is being provided again to us I would recommend every savers, spenders, frugalistic people and investors to maximize this technology. There’s always a better way how to invest your hard earned money but you need a system to drive growth.
For more information: Col financial