Name of Profiled Client IPQ Results

Name of Profiled Client

Divina E. Pajara 1. She wants to invest to make funds grow.
Divina E. Pajara

2. 0% - 25% represents the percentage of

liquid assets from the amount she intends to

Birthday
Birthday
invest
January 31 1977
January 31 1977
3. She sees herself needing this anytime

4. She is comfortable with investments that

EducationalAttainment
Educational Attainment
primarily give safety of funds, and secondary
College
College returns

5. She is only familiar with Time Deposits

JobTitle,
Job Title,Field
FieldofofWork
Work
6. She is currently invested in Time Deposits

Business
Business owner,
owner, household
household bakeshop
bakeshop
7. She has a moderate risk tolerance and

intends to invest in fixed income securities

Amountintended
intendedtotoinvest
invest and equities. She understands that it requires
Amount
a longer time horizon to meet these goals.
PHP10,000
PHP 10,000

8. Liquidity is modestly important, she does

not want any losses and wants a stable fixed-

Whereshe
Where shewill
willuse
usethe
thefund
fund
income and wants to be more conservative.
Education
Education
9. She has no experience in investing
Proposal A
Amount Intended for Investment – PHP 10,000 Time Deposit Percentage – 50%

Time Deposit 10,000 * .5 =PHP 5,000

Philtrust Bank – 0.50% Balanced Funds Percentage-30%

Balanced Funds (UITF) 10,000*.3=PHP 3,000

Ab Capital Balanced Fund-4.60% (1 year return) Equity Funds Percentage-20%

Equity Funds (UITF) 10,000*.2=PHP 2,000

SB High Dividend Equity Fund-9.28% Passive Income

Proposal A Time Deposit – Philtrust Bank

Ab Capital Balanced Fund-4.60% (1 year return) 5,000*0.005=PHP 25

Balanced Funds – AB Capital

Equity Funds (UITF)

3,000*0.046=PHP 138
SB High Dividend Equity Fund-9.28%

Equity Funds – Security Bank

Balanced Fund-30 % Equity Fund-20%

2,000*0.0928=PHP 185.6
Time Deposit-50%

The profiled client is only familiar with Time

Passive Income
200 Deposits therefore we invest most of the funds
180
160 in Time Deposits. She also wants to invest in
140
some fixed income securities and equities but
120
100 wants little risk and wants to avoid losses,
80
60
therefore we invest in UITF’s which offers a fixed
40 portfolio of securities and is definite. In this
20
0 proposal she gains a moderate amount of money
Time Deposit Balanced Equity Fund
Fund
and has less risk involved.
Proposal B
Amount Intended for Investment – PHP 10,000 Time Deposit Percentage – 20%

Equity Funds (UITF) 10,000 * .4 =PHP 4,000

SB High Dividend Equity Fund-9.28% Savings Percentage-40%

Time Deposit 10,000*.2=PHP 2,000

Philtrust Bank-0.50% Equity Funds Percentage-40%

Savings 10,000*.4=PHP 4,000

BDO-0.25% Passive Income

Proposal B Time Deposit – Philtrust Bank

2,000*0.005=PHP 10

Savings – BDO

4,000*0.0025=PHP 10

Equity Funds – Security Bank

Time Deposit Savings Equity Funds

4,000*0.0928=PHP 371.2

Passive Income
In this proposal we take into account the clients
400
willingness to take a moderate amount of risk in
350
300 order to have a higher return. We invest 40% of
250 the amount that is intended to be invested in
200
equity funds though we invest the remaining
150
100
into savings and time deposits in order to have
50 money that can be easily accessed in case the
0 equity funds might not turn out good
Savings Time Equity Funds
Deposit
Passive Income Results

Proposal A – PHP 25 + PHP 133 +PHP 185.6

= PHP 343.6

Proposal B – PHP 10 + PHP 10 +PHP 371.2

= PHP 391.2

Final Recommendation

I would prefer for the client to pick Proposal A, it has a lower yield than Proposal B, and

the client has a moderate risk tolerance, but she has stated that she has no experience in investing

and wants no losses to the amount she invested. Proposal A has a more comfortable take that

meets the client’s needs and will guarantee a fixed income and has little risk involved. Though I

would prefer Proposal B if she becomes more comfortable with investing and gains experience so

she can determine what she wants.