This start of a decade has been a big change for everyone. From losing their jobs to losing their family members, tragic events for most people.
The investments of people that they contributed on for several years shrink their value in a matter of months.
Despite the fears about losing money in investing during pandemic, there are still several types of investment to choose from. I want to share how I invest in diverse funds this time of red days in investment world.
1. Unit Investment Trust Fund
This type of fund is closely similar to mutual funds. The terms used were prices per unit instead of prices per share that is used in a typical Mutual Fund.
The difference lay in the place where you can buy the UITF which in banks unlike mutual funds that is mostly offered by companies.
Currently I have over 30,000 shares in my UITF account. I want to buy more each month especially this time that the market is going down again.
My initial investment here comes from the calamity loan that is offered in my workplace.
I put three fourths of what I loaned and currently the interest that is accumulated with the loan can be paid off by my paper gains if I actualize it!
I want this investment to reach hundred thousand shares and I like to redeem it after 5 years or more.
2. Mutual Funds
Since June last year, I invested in it every month. I like buying shares when it’s lower than the price the first time I bought it. It’s like averaging down the price you bought in your first thousand shares.
This year I put some of my money on Equity type of mutual fund. Last year I started with Index Mutual Fund that is why I want to diversify into equity.
There are terms like Front End Load and Back End Load whenever you try to buy a share in mutual fund.
At first I chose the front end load as I don’t know anything about it yet. I just notice that it incur fees that gives me the option to redeem my shares anytime.
When I put money on mutual fund, the second time till present, I always choose back end load. The advantage was it doesn’t charge you the fees like the front end load has. The only downside but maybe not so disadvantage for you if you want investments long term is that it can’t be redeemed for five years without additional charges of early redemption fees. It’s like having a holding period so that you won’t pay for any unnecessary withdrawal cost.
This works best for me since I don’t need so much money to sustain my lifestyle. This also makes me a long time investor because I want to avoid paying for front end load fees as well as the early redemption of back end load.
I will gladly wait for the 5 year period or more. I can add shares to my mutual fund every month and also add some other types of mutual funds like balanced fund, bond fund or money market fund as I wish.
Buying investments became a necessity for me to supplement for the expenses I incur daily. Food, clothing, internet and rent expense can be alot and having investments that can increase the value of your money can become your support financially.
Today, I also opened mutual fund account that focuses on dividend yielding stocks. The market is lower today compared in the past few weeks and months. I want to earn more in mutual funds and testing different types of funds is also fun!
I know some of you might cringe about this but I am amazed by the volatility of Bitcoin. You never know if you are buying at the lowest of lows or at the highest of highs.
I haven’t gained yet here, I started last December but I buy high then sold everything low. I also lost money in the process of buying alt coins and selling everything low.
I gained experience and lesson from losing money in investing into something that I wasn’t familiar about.
Even if I lose some money, I gained the experience of losing! I learned alot and gained composure in times when I see that I have big paper loss.
I am now calm whenever I see my money lowering in value, but I don’t do what I did before. Now, I stay calm, buy more and average down my investment.
I don’t need to panic into selling since I don’t need the money in the moment. I no longer let my emotions to decide on when to buy or when to sell.
I always try to sell some in gains then buy again in low prices.
I invest in bitcoin so that I can learn more about what to do when prices are going to the dips and also when prices are climbing the highs.
Last week when I checked my payroll account, some small amount was credited to it. I suddenly remembered that it might be the interest that I earned from my Bonds investments.
The percentage of earning is fixed and also smaller compared to what I can potentially earn in mutual funds. It’s still a good investment, because it helps stimulate the business of the people in the country. When you buy bonds in financial institution or companies, it was used to capitalize business or other opportunities. You are making money while also helping the economy.
Right now, I don’t intend to add more funds in bonds. I am more likely to explore number 5.
If you read my previous blogs, you might know that I invested about 100 shares in stocks of a company as well as about 1000 shares in an energy company.
Today, I bought another 1000 shares in the same energy company to minimize the average price that I bought. The market is down by double digits since I bought the first 1000 shares, so I tried to buy another 1000 shares but with a significantly lower price!
I want to buy more shares, but I also try to read more about it before buying anything.
I set the website I use to buy stocks into another 2000 shares to automatically buy for me when the market opens tomorrow.
Hopefully, some people will choose my bid so that I can average downore on the energy stocks I bought.
6. High Interest Savings Passbook Account
I don’t know how you can define high interest, but most banks define it as higher than .01% in interest when you save money to them.
If you want an account that doesn’t get its value to the ground, a passbook account can be ideal. It can also be your emergency fund account. You are earning some money from the interest while letting your money stay there for some months.
Since I was young, I love looking at gold jewelries. When I got some money, I make sure to buy gold jewelries. It certainly increases it’s value every year!
I have about 8 jewelry items since I started buying them. Surely there’s also some loss in this kind of investment but still if you like gold, wear them! You can use it also of you badly needed some money, pawnshops can be your saviour in times of troubles financially.
8. Dollar Savings Account
The value of dollar when converted this pandemic can be so low. You can earn from it by waiting patiently.
You can buy a few hundred dollars and wait till the market recovers. You will earn some money from it if you would only stay the course.
- Life update
- I went jogging today
- Starting September the right way
- Starting over
- When you are at a low point in your life
Did you enjoy reading? You can message me at email@example.com and let’s discuss more about finances.