COL EASY INVESTMENT PROGRAM  FREQUENTLY ASKED QUESTIONS (FAQ)

 

 

1. What is the COL Easy Investment Program?
2. How does cost-averaging method work? What are the benefits of cost-averaging?
3. What are the benefits of Cost-Averaging?
4. How does COL EIP make cost-averaging easy and convenient for me?
5. What are the features of the COL Easy Investment Program?
6. What is the criteria used to determine COLs list of Premium Growth Stocks?

7. How much of my funds do I need to initially invest? For how long?
8. How much time will I need to regularly spend in order to manage my investment efficiently?
9. What differentiates investing through the COL EIP than through a mutual fund?
10. How can I learn more about the COL Easy Investment Program?

OPENING A COL EASY INVESTMENT ACCOUNT
1. How do I open a COL EIP account?
2. What is the minimum amount to open an EIP account?
3. How do I set-up my COL account?
4. When do I fund my EIP account? Should it be immediately after I am reminded of my next investment date?
5. Can I skip my COL EIP investment order?
6. What happens when I skip a scheduled investment date?
7. Can I cancel the entire COL EIP schedule?
8. Can I sell my EIP shares?
9. How do I withdraw?
10. How long should I invest under the COL EIP?
11. What are the costs involved in investing under the COL EIP?
12. Are there any penalties if I sell my stocks before the specified end date?

13. How do I fund EIP account?

1. WHAT IS THE COL EASY INVESTMENT PROGRAM? 
The COL Easy Investment Program or COL EIP is an innovative way for building personal wealth launched by CitisecOnline (COL). COL EIP's objectives are to minimize risks and maximizing your earnings potential over a period of time and you can start with a small amount of capital. COL EIP is therefore ideal for investors with little time, knowledge and capital to invest the stock market.

COL EIP employs the cost-averaging method which was designed by experts and is used by financial institutions all over the world.

Through the COL EIP, CitisecOnline has simplified the cost-averaging method for its customers by automating the purchase of stocks and by providing a list of "Premium Growth Stocks" that an investor can choose from. This provides the convenience of investing and minimizes risk by providing you a list of companies to invest in which were carefully selected by COL's seasoned financial analysts.

2. HOW DOES COST-AVERAGING METHOD WORK?

Cost averaging is a wealth-building strategy that involves investing a fixed amount of money at regular intervals over a period of time. 

Cost averaging allows one to buy more shares when market prices are low and less shares when the market prices are high thus effectively bringing the average purchase cost down. 

Cost-averaging also maximizes the compounding gains over a period of time and eliminates the need to decide when to buy and at what price. It therefore reduces market risk by stretching out the purchase of stocks in small amounts rather than in a one-time lump sum investment.




3. WHAT ARE THE BENEFITS OF COST-AVERAGING?

There are many important benefits to using the cost averaging method.

1. It is simple and easy to do.
2. No need to time the entry in the market.
3. It reduces market price risk and volatility 
4. It utilizes the potential of the power of compounding 
5. You only need a small amount of money to start

4. HOW DOES COL EIP MAKE COST-AVERAGING EASY AND CONVENIENT FOR ME?


With COL EIP, the cost-averaging investment method is simple and easy to maintain. All COL customers have access to the COL EIP feature.
1. One-time set-up for your investment amount and schedule
2. List of Premium Growth Stocks pre-selected by our team of seasoned analysts
3. Auto-reminder and calendar schedule feature
4. Automatically updates and computes your portfolio value
5. Accessible 24
/7, anywhere through the Internet


5. WHAT ARE THE FEATURES OF THE COL EASY INVESTMENT PROGRAM?

The EIP system makes cost averaging a simple process that is easy to maintain over the investment period.

EIP portfolio tracker - accessible 24
/7 to view and track your investments 
Calendar Schedule - automatically updated to inform EIP investors when their next date to purchase shares of their premium stocks will be.
Notification system - reminds all customers through e-mail when it is time to fund their EIP portfolios and when it is almost time to buy shares for their EIP investment stocks.


6. WHAT IS THE CRITERIA USED TO DETERMINE COL'S LIST OF PREMIUM GROWTH STOCKS?

The COL Easy Investment Program pares down the choices of investors to Premium Growth Stocks. These companies with a proven track record and are evaluated on the basis of their high earnings, the credibility of management, their superior products and services, a strong balance sheet and they all belong to solid growth industries. 

Companies evaluated by COL must meet specific criteria to be considered Premium Growth stocks or stocks that are chosen for their resilience and long-term earnings potential. We filter through the different companies by appraising their qualifications to fit the GEMSS criteria.
G - Growing Industry
E - Earning Visibility
M - Management Credibility
S - Superior Products or Services
S - Strong Balance Sheet

7. HOW MUCH OF MY FUNDS DO I NEED TO INITIALLY INVEST? FOR HOW LONG?

You determine the amount of money you are willing to set aside based on your personal investment capacity. We recommend a minimum of 20% of your investable funds to be invested in stocks. As previously emphasized, the longer the investment period, the more opportunity for greater compounded earnings. We recommend a period of at least 5 years. 

8. HOW MUCH TIME WILL I NEED TO REGULARLY SPEND IN ORDER TO MANAGE MY
INVESTMENT EFFICIENTLY?


The amount of time needed to regularly manage your COL EIP account depends on your investment schedule; i.e., once a month for monthly and once a quarter for quarterly. 

9. WHAT DIFFERENTIATES INVESTING THROUGH THE COL EIP THAN THROUGH A MUTUAL FUND?

COL EIP is a self-directed investment and a mutual fund is professionally-managed by a fund manager.

Unlike mutual funds, COL EIP only charges you the standard fees and commission for every transaction while mutual funds normally have front-end, back-end and management fees. Furthermore, you can decide you the mix of your portfolio or choose the specific stocks you want to invest in.

10. HOW CAN I LEARN MORE ABOUT THE COL EASY INVESTMENT PROGRAM?

For more information regarding the COL EIP, you can review our Information Guide at www.citiseconline.com/easy or call our Customer Relations Officers at (632) 6-333-777 or email at easy@citiseconline.com.



OPENING A COL EASY INVESTMENT ACCOUNT

1. HOW DO I OPEN A COL EIP ACCOUNT?

Simply open a COL account. All COL customers will have automatic access to the "EIP" function. To open an account, please download the forms, then send the completed and signed forms together with the required documents to our office address. You will receive an email confirmation of your account approval and be given information on how to fund your account.

2. WHAT IS THE MINIMUM AMOUNT TO OPEN AN EIP ACCOUNT?
A minimum of Php5,000 is required to open a COL EIP account.

3. HOW DO I SET-UP MY COL ACCOUNT?

After logging on to your COL account:
1. Click on the Trade/Portfolio Tab and click the EIP function.
2. To set-up your investment schedule: 
a. Decide on the fixed amount you wish to invest on a regular basis. (ex. Php5,000)
b. Determine the regular interval in making the investment. (weekly, monthly and quarterly)
c. Determine your investment period. (Start date to end date)
d. Select the stock you want to invest in. You can also choose from COL's list of Premium Growth Stocks. 
3. Once you've set-up this information, you can start investing.
4. You will receive an email confirmation of your stock purchase and your EIP portfolio will be instantly updated.
5. Forty-eight hours before your next investment date, you will receive an auto-reminder via email of the details of your next scheduled investment. You will also be reminded to fund your account, should you not have the funds available, in your COL account. 
6. On your investment date, you have to log-in to your account during trading hours of 930am to 12noon, and you will be asked to simply place your order by clicking BUY NOW and input your password to confirm the transaction.
7. You can also opt to place your order during off-hours or when the market is closed by going to the T
RADE/PORTFOLIO > OFF-HOURS ORDER and place your order by indicating the price you want to buy at and it will automatically calculate the number of shares to be purchased. Your off-hours order will be routed to the PSE at the opening of the market of the next trading day.

4. WHEN DO I FUND MY EIP ACCOUNT? SHOULD IT BE IMMEDIATELY AFTER I AM REMINDED OF MY NEXT INVESTMENT DATE?

We recommend that you to fund your account at least 48 hours before your next investment date. This will help you avoid missing your investment dates and allow you to take advantage of the benefits of the cost-averaging method.

5. CAN I SKIP MY COL EIP INVESTMENT ORDER?
Yes, you can skip your investment order anytime by clicking on the Cancel button on the Trade/Portfolio > EIP > Cancel.

6. WHAT HAPPENS WHEN I SKIP A SCHEDULED INVESTMENT DATE?
You will continue to be reminded on your COL account every time you log-in until you cancel the order or until the next scheduled investment date comes. 

7. CAN I CANCEL THE ENTIRE COL EIP SCHEDULE?
Yes, you can cancel your investment program anytime by clicking on the Cancel button on the Trade/Portfolio > EIP> View EIP Order > Cancel.

8. CAN I SELL MY EIP SHARES?
Yes, you may sell your EIP shares anytime. COL does not prohibit you nor prevent you from liquidating your investments.


9. HOW DO I WITHDRAW?

Simply fill up the Funds Withdrawal Form. Completely fill up the necessary form details and send the original copy to the COL Business Center or have it faxed to our Accounting Department at (632) 634-6958. Please call our Business Center at 6-333-777 to confirm when your check will be ready for pick up. 

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0. HOW LONG SHOULD I INVEST UNDER THE COL EIP?

As proven in the method of cost averaging, the longer you continue to invest in your chosen stocks, the greater the investment earnings over the period of time. The length of your investment time frame does depend solely on you; however, we encourage all our customers to commit to the COL EIP for at least five years.

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1. WHAT ARE THE COSTS INVOLVED IN INVESTING UNDER THE COL EIP? 

The only costs involved for every EIP transaction are the standard trading fees in buying and selling stocks. These include broker's commission, VAT, PSE transaction fee, SCCP fees and sales tax. COL charges the lowest-allowable commission rate of of 1% of the transaction amount.

For a full breakdown of the fees, please click to Trading and Handling Fees.

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2. ARE THERE ANY PENALTIES IF I SELL MY STOCKS BEFORE THE SPECIFIED END DATE? 
There are no penalty fees or extra surcharges if you sell your stocks before the specified end date of your investment period. Should you wish to re-activate your COL EIP, you simply set-up your investment schedule once more.






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