One can start investing below PHP50,000 with guaranteed good rate of return without having to fear being duped into pouring in their hard-earned money to fraudulent schemes.
After the Kapa-Community Ministry International Inc. (KAPA) incident, the Securities and Exchange Commission (SEC) has intensified its crackdown against more groups allegedly employing a Ponzi scheme, or an investment program where investors are lured with impossibly high returns and paid out of the capital contributed by later investors.
KAPA was found to have recruited and encouraged members to "donate" any amount in exchange for a 30-percent monthly return for life, without having to do anything other than invest and wait for the payout.
“The rule of thumb is 5 to 6 percent per year. So anything above 6 percent you have to double-check kung sino nagbebenta talaga at kung mababayaran ka (who is really selling the financial instruments and if he can provide the payout),” said Eduardo Francisco, president of BDO Capital & Investment Corp., in an interview with Philippine News Agency.
Francisco pointed out that return on investments of above 10 percent is “too good to be true”.
He cited examples of investments offering good rate of return, including retail treasury bonds (RTBs) or government security bonds, and corporate bonds issued by companies like SM, Ayala, Aboitiz and San Miguel Corp.
“You can get around 5-6 percent on those bonds for a couple of years. It’s not the 18 percent, 12 percent, 20 percent yield on the scams, but at least you get an assured return,” he explained.
Francisco said banks offer preferred shares, common stocks, investment management account, and unit investment trust funds.