Taking advantage of the correction

No posts for weeks now. Been busy taking advantage of the "correction" in the market

After I fully redeemed one of my mutual fund investments on January 16, 2018, I made a "discovery" that I should not have redeemed it fully.

Instead, what I should have done was to set a certain return over and above what I am getting from my 5-year time deposit placement which is 5.5% per annum at Sun Savings Bank. Redeem partially  and leave the rest to grow.

Anyway, at redemption I got a return of 12% per year. Not bad. 

But it should have been better if I just redeemed enough shares that would amount to the gain on investment and leave the original capital intact.

For instance, my cost of investment is, say P500K. After a year or so, I have unrealized gain of P100K. That's already a 20% return. I will redeem the equivalent number of shares for P100K. The remaining shares would still leave the original capital intact. Then I wait for another year or so when the NAVPS moves above my preset goal of 5.5%.

So what kept me busy these past weeks after PSEi hit 9000+ and plunged was to return my original capital to my mutual fund by way of a modified cost averaging method. My top ups were in different amounts.

The realized gain is already long gone. 😊😊