Sunday, August 28, 2011

What is Citiseconline's Easy Investment Program (EIP)?

Citiseconline’s EIP or Easy Investment Program was designed to help ordinary citizens to invest in the Philippines Stock Market the simple and convenient way.  The basic principle of this program is based on peso-cost averaging which is a time tested strategy to build personal wealth by investing a fixed amount of money in a good quality company in regular intervals over a period of time

This strategy works best for a long term investment and the good thing about this is that you don’t have to time the market.   The idea is that whenever the stock price of a certain good quality increases we purchase less shares and whenever the price decreases, we purchase more shares so we don't have to time the market just follow your your schedule on buying your shares.  In the long run, the average cost per share will be lesser than the actual price per share.

The following are the features of Citiseconline’s EIP:

a.       Recommends premium quality companies which are suitable for a long term investment.  How did they arrive with this list?  Citiseconline has a group of fundamental analysts who are expert in studying all these listed companies in the stock exchange.  They make a thorough study of a certain company before they recommend it to the list of premium quality stocks.  I don’t have the capability of studying these companies so I just rely on their recommendations.

b.      On-line monitoring of your EIP portfolio.  With Citiseconline you can always monitor your stock positions anytime, anywhere you are as long as you have an internet access.  Personally, I still make my own spreadsheet to monitor my stock positions, then I compare it with citiseconline’s report.  So far, I haven’t found any discrepancy yet aside from small centavo difference because of the rounding off system.

c.       Citiseconline EIP reminds clients of their scheduled EIP order.  When you register for Citiseconline EIP, you will be required to input how much you are going to invest in a certain quality company they recommend, for a regular interval (say weekly, monthly or quarterly) at a certain period of time.  Based from your input, they will remind you two days before your scheduled EIP purchase through e-mail.

Remember that Citiseconline’s EIP will not automatically buy your stocks for you.  You have to set your order at your scheduled date, just don’t forget to check your account for an available fund.

This program is still covered with the board lot rule so don’t expect that if you allot 5,000 pesos monthly for a certain company, you can buy a 5,000 pesos worth of shares.  The amount will vary depending on the prices of stocks at the time of your scheduled order so what I'm doing is that I fix my EIP order to the number of shares which is in accordance to the board lot rule and to my budget. 

I registered for an EIP order for ALI (Ayala Land, Inc.) every 15th of the month at a 5,000 pesos investment.  With this 5,000 budget, I can buy approximately 300 shares of ALI each month. For several months now, ALI's price fluctuates from 15 pesos to 17 pesos per share, sometimes I buy ALI shares for only 15 pesos per share (approximately 4,550 pesos for 300 shares) and there are also times when I buy it at 17 pesos per share (approximately 5,200 pesos for 300 shares). 

So for those of you who want to invest for a long term in the stock market the easy and convenient way, you can always try this Easy Investment Program of Citiseconline.  Please visit their website to know more about this program.

8 comments:

Michelle Grace Quilala said...

another option for online stock trading is Philstocks (www.philstocks.ph), First Metro and BPI Trade.

Sasora said...

Thanks for the feedback! :D
I'd like to invest too! I hope my application gets approved.

Sasora said...

Thanks for the feedback! :D
I'd like to invest too! I hope my application gets approved.

The Journey To Enlightenment said...

Hi, if I opt for EIP can I not follow the time interval I designated? Say, I chose to invest P5000 monthly (every 2nd week of the month) but fortunately on the 3rd week, I have 3k extra money to invest, can I still buy stocks on the 3rd week?

May Nesperos said...

i am a resident of Tagum City in Mindanao and very interested to invest in citiseconline EIP (easy investment program).I understand that the minimum amount that we can put in is 5000. But may I ask, how often do we need to deposit money? is it monthly? quarterly? or as often as we want? can you further explain kasi hindi ko masyadong maintindihan ang mga proseso at benipisyo, kung kelan at paano namin siya makukuha. my email ad is sorepsenyam@yahoo.com

Grace said...

Sorry friends if this is already a late response ... anyway I hope I still helped.

Enrolling in the EIP program of COL Financial is just a way of COL Financial to help long-term investors to gradually acquire stocks over time. Once you have enrolled in this program, all they have to do is just send you an e-mail to remind you that it's time for you to buy your preferred stock. They will just serve as a reminder so you won't miss buying your stock on the schedule you have set. The investor is still the one to decide whether to buy or not.

You can always buy stocks whenever you want as long as you have money on your account.

You can always deposit money to your account anytime you want pero hindi mababawasan o madadagdagan ang pera na yan hanggat hindi ka bumibili o magbebenta ng stocks. Remember COL Financial ay online stocks broker na nagiging link lang nating investors para maka-acquire ng stocks sa Philippine Stock Market. Tayong investors pa rin ang magma-manage sa pera natin. Yong mga programs/information na binibigay nila sa atin ay additional effort nila para ma-guide tayong gumawa ng tamang desisyon. You can always check their website for more information.

Happy investing everyone.

Raymark said...

I want to know how is your portfolio doing since this post. .thank you!

Grace said...

Hi Raymark. It's been a long time since I last updated this blog.

Regarding my portfolio, this year is not a really good year for me. I was not active for most of the months so most of my earnings came from the dividends. Unlike the past 5 years that I have earned an average of 20% per year, this year is way, way below my average.

I have not really followed the EIP program of Colfinancial. I did more of trading (buy and sell).