Home Top News Staying invested in a high inflation, high interest rate environment

Staying invested in a high inflation, high interest rate environment

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For the past two years, inflation has been major economic news. Although the headline inflation rate has declined to 3.8% in April this year from 6.6% a year ago, the Bangko Sentral ng Pilipinas (BSP) remains cautious. Upside risks to inflation persist, brought about by rising food and fuel prices and as geopolitical tensions in the Middle East threaten to limit energy and oil supply globally.

The BSP has kept its benchmark rate at 6.5% in order to curb inflation and would only consider rate cuts once the headline inflation rate shows a consistent downtrend. While potential monetary easing was expected in the third quarter of this year, recent events may delay this development and prompt a higher- for-longer interest rate environment.

Make your move with money market funds

BDO understands that investors like you are looking to remain invested even in a high interest rate environment. During such times, you can still reap attractive returns by investing in a money market fund such as the BDO Money Market Fund. Investments can be made based in your preferred currency, whether Philippine Peso or US Dollar.

High yielding. This type of fund potentially provides you with stable returns that are higher than traditional deposit products. It invests in highly liquid, short-dated and low-risk securities that are less prone to market fluctuations, allowing you to preserve and grow your investment over time.

Professionally managed. BDO’s experienced fund managers will manage this investment for you across a diversified portfolio of Philippine Peso- or US Dollar-denominated time deposits and short-term securities.

Easily accessible. Because it’s a highly liquid investment, you can easily redeem anytime and get your funds within the day. No early redemption or pre-termination fees. This becomes beneficial most especially when interest rates start to decline and the need to reinvest your funds in bond or equity funds arises. You never have to miss an investment opportunity!

Fast and convenient. Investing in the BDO Money Market Fund starts at just P10,000 or US$500. For fast and easy investing, BDO has developed a program called Easy Investment Plan that allows you to invest regularly and automatically without the need for manual transactions.

Learn more about the BDO Money Market Fund at www.bdo.com.ph/personal/Investments/funds or visit your preferred BDO branch.

BDO Unit Investment Trust Funds (UITFs) are not deposits but trust agreements. They are not obligations of, nor guaranteed, nor insured by BDO or its affiliates and subsidiaries, and are not insured by, nor governed by the PDIC. Due to the nature of the investments of a UITF, the returns/yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of the securities held by the UITFs, including government securities, is for the account of the investor. The units of participation in the funds, when redeemed, may be worth more or worth less than the initial investment of the investor. Historical performance, when presented, is purely for reference purposes and not a guarantee of similar future results. BDO, as trustee, is not liable for losses unless there is fraud, willful default, bad faith or gross negligence. Investors must read the complete details of the UITFs in its Plan Rules, make their own risk assessment, and when necessary, seek an independent/professional opinion before making an investment.

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