One of my blog followers sent me a message this morning telling me that she has been reading all my blog posts and that my article “A Janitor Invests in the Stock Market for P500″ caught her attention the most.
She was actually asking for an alternative to BDO’s EIP on UITFs (unit investment trust funds) since there is no BDO branch in her place. The only major bank that has a branch in their city is the Bank of the Philippine Islands (BPI).
Here’s her message:
“Hello Burn. I just spent my afternoon reading your articles and your post on a janitor who invested through BDO Equity Fund caught my attention (seriously).
I just wanna ask kung may ganon na sa BPI..wala kc BDO dito sa lugar namin (Malaybalay City). Natanggap ko na kase ang midyear bonus ko and gusto ko i-invest ito just like that of the janitor. Do u have any idea magkano starting for UITF equity sa BPI?”
My Answer: Similar to BDO’s EIP or Easy Investment Plan, BPI (Bank of the Philippine Islands) also launched a program called the Regular Subscription Plan or RSP. It allows a BPI client to contribute to his investment account regularly and automatically.
BPI’s RSP is an investment program that allows a client to purchase units for an investment fund account on a periodic basis, either monthly or quarterly. I have always advocated regular and automatic way of investing in mutual funds or UITF’s for the busy individuals since they don’t need to time the market or even sneak some time during working hours to view their portfolios.
Here are some of the benefits of investing automatically through BPI’s Regular Subscription Plan:
a. Higher returns thru cost-averaging. By enrolling an investment fund into the RSP, a regular contribution amount is debited from a client’s BPI/BPI Family Savings settlement account on a periodic basis, for the purchase of units based on the prevailing price. This build up strategy allows one to average his/her acquisition cost. When prices are low, more units/shares are purchased, while when prices are high, fewer units/shares are bought.
b. No market-timing needed. Because additional investments are automatically programmed regardless of the movements in the market, there is no longer a need to analyze market information before deciding when to invest. Gathering the relevant information necessary to time the market is done by the fund manager for the investor. Studies have proven that while the age-old advice to buy low and sell high is simple and obvious, an investor’s unsystematic behavior leads many to do the opposite. It is advised that the best course of action is to invest regularly and to stay invested.
c. Convenience. One doesn’t have to leave the comfort of his/her home or the office to invest since contributions are programmed and electronically processed depending on the schedule that the investor have chosen.
d. Control. The investor retains control over his/her investments since he/she determines the dates and amount of the contribution. Moreover, anyone may stop and re-start the RSP anytime.
e. Affordability. With low minimum initial and additional contribution amounts, one can now slowly start building his/her investment portfolio.
What are the Investment Funds Available under the RSP?
To activate the RSP for both new and existing accounts you will be required to make an initial RSP contribution on the day of the enrollment. Without the minimum initial RSP amount subsequent subscriptions will not be triggered. As for the subsequent contribution, the investment amount should purchase at least one (1) unit of participation.
Here are the minimum initial RSP’s for the specific investment funds of BPI.
How Do I Enroll For the RSP?
According to BPI, you can enroll your investment for RSP in two ways:
a. Via the internet through BPI Expressonline (www.bpiexpressonline.com) – RSP through this facility is available to all EOL users who have also enrolled their investment account in BPI Expressonline. Click here for instructions on how to enroll in RSP through BPI Expressonline.
b. Via the Branches – for the BPI Investment Funds, you may visit any BPI branch to request for the activation of the RSP. For the Mutual Funds, you may submit your RSP enrollment request to any BPI/BPI Family Savings Bank Branch or to your MF Sales Agent.
To know more about BPI’s RSP or Regular Subscription Plan, you may visit its FAQ section at the BPI Asset Management site.
As with any investing decision, it is very important to always determine first your financial obligations, goals for investing, and your risk perception and personality.
Make time to study your investing options and decide which financial instrument suits those three factors.
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