Filipinos still emotional when investing their money

MANILA, Philippines - Turning Filipinos into educated investors remain a challenge for financial managers especially since the population is emotional when it comes to releasing money, even if the move is profitable. Philam Asset Management, Inc. (PAMI) Vice President Gina G Morales described Filipinos to be "very conservative and very emotional" when it comes to investing. She said taking the bandwagon is also very popular, particularly among those who just looks at the rates of return without having a solid financial goal and without considering risks like inflation. The troubles hounding US-based investment firms last week which sent equities and other financial channels tumbling last week proved this as many investors got jittery and wanted to redeem their investments. "The redemptions were manageable. We were able to weed out investors who are not there for the long run," Morales said. She added that while there were redemptions on certain investment products, there were also those who chose it as a time to invest. Ricky G So, PAMI senior assistant manager for training and marketing, said he did not observe any remarkable shift in investments amid market jitters last week. "It was not shifting. It was more of a reallocation but you still maintain the same exposure. In any portfolio, you must have all asset classes," So said. - Anna Barbara L. Lorenzo, GMANews.TV