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Online
stock brokerage CitisecOnline (COL) wants to generate
fresh interest in the bourse through a new program
designed to minimize risks for first-time investors.
As part
of its commitment to expand participation in the stock
market through education, COL launched early this month
a simple investment program that has generated a stream
of inquiries, many from investors with little or no
knowledge of the stock market and with minimal initial
funds to invest.
The COL
Easy Investment Program minimizes risks for newcomers,
while offering the benefits through investments in
premium growth stocks. It employs the cost-averaging
method, an established wealth-building tool employed by
many individuals as well as some financial institutions
worldwide.
In a
statement, Dino Bate, president of CitisecOnline, said
“We have simply automated the cost-averaging method. We
have also provided additional features in our online
platform to make it convenient for all investors to
access and invest in the stock market,” he explains.
For most first-time stock market investors, knowing when
to buy and when to sell is a tricky and discouraging
issue. By investing a fixed amount at regular intervals
over a long period, an investor does away with the
problem of timing. By allotting a set amount over time,
the cost averaging method allows one to buy more shares
when prices are low and less when prices are high.
Eventually, the average cost of the accumulated shares
is kept low.
In
addition to the issue of timing, the COL Easy Investment
Program offers the investor a list of preselected stocks
chosen by its seasoned financial analysts. The program
pares down the choices of investors to companies with a
proven track record, high earnings, credible management,
superior products and services, a strong balance sheet
and they all belong to solid growth industries.
Companies that currently meet those requirements are:
Ayala Land, Bank of the Philippine Islands, Jollibee,
Manila Water, Philippine Long Distance and Telephone
Co., and SM Prime Holdings.
COL vice
president and head of investor education Juanis Barredo
explains that online trading has made it a lot more
convenient for customers to enjoy the benefits of cost
averaging. “We have simplified the process so that even
first-time investors can profit from it.”
COL clients can schedule their investments by setting up
a fixed amount to be invested at regular intervals
through COL’s online platform. Customers will be
reminded via e-mail of a scheduled investment date. They
will also be able to track their portfolio over the
Internet anytime.
Bate
says that the COL Easy Investment Program is an ideal
entry point to the stock market for all investors. “This
program caters to all even if they do not have the time
and experience to invest in stocks. As investors become
more confident in the stock market, they can avail of
the greater opportunities offered to them by online
trading.” |
