While updating mine’s and my wife’s balance sheets two weeks
ago, my wife noticed that one of my bank accounts was not incurring any returns
and remain latent with the bank. It was my non-interest bearing checking
account with China Banking Corporation which I used to issue post dated checks
to acquire our real estate properties.
Most of our bank accounts were tied with our paper asset investments
as settlement accounts while the balances were maintained to the required
amount to acquire interests.
Since we stop investing in real estate assets more than a
year ago to focus more of our resources in building our paper assets on long
term, there was no transaction done with the said bank account.
Thinking that we may still have the need to use it since my
wife is planning to acquire a few foreclosed properties to be rented out to
create monthly passive income, I went to my China Bank branch in Antipolo City to deposit a few amount of pesos just
to record a transaction to avoid the dormancy charges. To my surprise, the bank
was charging me a penalty of P400 pesos for the two month dormant period after
a year and two months that I did not made any transactions!
Disgusted over the huge penalty that was charged against my
account, I asked the bank personnel to close it instead.
Though small amount, I was frustrated about the cash that
was lost due to my ignorance of my bank’s dormancy period and the corresponding
charges in case I defaulted.
Thinking about creative ways on how to regain the cash I
just lost, I went straight to the nearby BDO Unibank just across Antipolo
Cathedral to open an ATM Savings account.
While my ATM account application was being processed, I ask
the branch manager if at the same time, I can also apply for investment
participation with BDO Equity Fund. She fondly obliged while asking me if I am
also interested to participate with BDO’s Easy Investment Plan (BDO EIP). I
said “yes” while thanking her for the kind service that she had extended to me.
Within an hour of signing the required documents, I was able
to open my BDO ATM account and at the same time deposited my funds to be bought
for my units of participation with BDO Equity Fund. My BDO Easy Investment Plan
was also programmed to debit P2,000 pesos every month starting 30th
October 2013.
How’s my initial fund participation with BDO Equity Fund doing today after two weeks
with the fund?
To share with you, here are the data about my fund.
I bought my initial units at NAVPU of 365.3579.
Today’s NAVPU is 383.7896.
Computing those data to get my fund's returns;
NAVPU during participation = 365.3579
NAVPU today = 383.7896
%ROI = (383.7896 – 365.3579)/365.3579
%ROI = 5.04%
By switching my non-performing and dormant checking
account into a high performing equity Unit Investment Trust Fund, my money had
work hard for a few weeks to give me returns of 5.04 % higher than the annual
interest rate of any savings account or time deposit in the market today!
