My Client’s money doubled in 8 yrs!

My client invested P300,000 last 2007 in a balanced fund. A balanced fund is a mix of equities/stocks and fixed income instruments. The following year, 2008, there was a recession in the market. Naturally, investments plummeted to an all-time low. I remember my client calling me back then. She was very nervous and was telling me her investment was already down to P200,000.

I prevailed upon her not to redeem her investments and just to stay put. She has no immediate need for it anyway. She just wants to pull it out for fear of losing everything.

Fast forward to this year, 2015. My client called to request for a travel insurance policy as I also issue travel insurance policy online. After I have issued her travel policy, I remember her investments and inquired with the Mutual Fund Management company I am accredited with (Philam Asset Management, Inc. or PAMI), the current status of my client’s investment. I saw it coming. She did not pull out her investments and stayed put. Her money went through the ups and downs of the market.

I texted her to inform that her investment grew to P600,000 already (double her investment). What can you expect? She was delighted obviously.

What were the investing lessons learned from this experience?

investing-time1. Investing takes time.

It will go through a cycle.  Invest early and have a long-term mindset.

2. Do not let your emotions get the better of you when investing.

When the market goes down, stay calm. If you think you are already losing, think of it this way: it’s only a “paper loss” if you will not withdraw, pull it out or redeem it.

It only becomes a “real loss” if you have no choice but to withdraw or redeem it IF you have a need or use for it. This is where the “risk” comes in (There is no investment without risk).

3. Listen to your Financial/Investment Advisor.

Their words are not absolute but sometimes, they see things from an objective perspective. They will listen to your concerns but they cannot be emotional about it. They are there to help you achieve your goal with your money which is usually capital appreciation or wealth preservation.

The end of the story is that my client is happy and she is considering reinvesting again!


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