Gadget over Investment = Lost Income Opportunity

Let me share an experience that up to now, I try not to regret about. It was in November 2006, the month I get my 13th month pay, when I stumbled upon a BDO branch in SM Mall of Asia. I asked around about their savings and time deposit accounts requirements. Curious about other products they offer, I asked what the heck does Balanced Fund mean. So the officer gladly explained how UITFs work and how higher their returns are compared to regular savings accounts and how there is also a risk of losing one’s investment in UITF. At that time, I was contemplating on putting my 13th month pay on a time deposit account. After having heard the bank officer, I thought I might as well invest it in the UITF.

BUT, just a few hours after payday, I bought a Sony PSP. To cut the long story short, I gave in to my child-like tendencies and deferred my interest in investing.

A year later, I look at my PSP and wondered what might have been. This is what might have been:

DATE NAVpu
11/15/2006 1,933.3924
11/15/2007 2,515.84

1 yr. Return 30.13%

At P12,000, the PSP I bought on 11/15/06 would have become P15615.08 on 11/15/07 had I invested it in the BDO Balanced Fund. Oh well, at least now I know what to do the next time a bonus comes around…