Wednesday, July 24, 2019

146 Investing in Funding Societies through PhillipCapital

146 Investing in Funding Societies through PhillipCapital

PhillipCapital has recently signed up with Funding Societies to carry its peer-to-peer financing products. This tie-up offers some exciting and interesting products.

When I shared the tie-up with investors, some of them are already existing investors with Funding Societies. So they see no difference going through PhillipCapital.

Direct investors in Funding Societies has two products to choose - Working Capital Financing and Invoice Financing. Working Capital Financing is for borrower to expand their business. Invoice Financing is for borrower to have liquidity while waiting for their buyer to pay. Direct investors can select the which type of financing to go for, rating quality of company and time frame of lending.

Working Capital Financing is consider higher risk because we cannot know what will turn out in a business expansion. Invoice financing is consider lower risk because the buyer has obligation to pay within a specific credit term.

I have shared I have two default investment in P2P financing. They are in the legal process to recover the money. So although the default rate is low, there is still default. This reminds me of an old Singapore advertisement that says "Low crime doesn't mean no crime."

What are the benefits investing through PhillipCapital?

Monday, July 8, 2019

145 REITs funds for stability and income

REITs funds for stability and income

In the just concluded 10th PhillipCapital Annual Conference, many fund houses presented their views on the market outlook and potential investment ideas. Almost all fund houses agree that market will remain volatile for the rest of the year. Investors looking for more stability and income may diversify some money into REITs funds. (Two of fund houses that present this view don't even have REITs fund themselves.)

Even before the conference, while we were travelling from JB to KL, few of us planners and agents were talking about how stable REITs funds has been performing for the past few months. The market has been volatile but REITs funds are steadily and slowly going up. One of agents has both REIT fund and REIT stock, interestingly he is not confidence the REIT stock management will perform in such economic condition but he was very excited with his REIT fund selection.

Below is the chart for REITs funds taken from FundSuperMart.