CHAPTER 3

RESULTS AND ANALYSIS

This chapter presents the results and analysis of the data gathered
from the respondents of the study. The following subject matters are: (a)
literacy of the elementary teachers on proper and legitimate investments, (b)
their understanding about KAPA upon learning about it, (c) effects of the
closure on KAPA in terms of financial aspect, (d) Their willingness to join
other schemes similar to KAPA even having the knowledge on proper
investment, and (e) their opinion on the government upon the closure of
Kapa.

Knowledge on Legitimate Investments

Knowledge is the information, understanding, or skill that you get from

experience or education (Merriam Dictionary,n.d). Thus, the research
questions used to assess the said knowledge of the elementary teachers-
respondents’ are “Have you undergone basic seminars/orientations
regarding investment funds? If yes, please specify what kind of seminar?”
and “What is your understanding about investment in general?”.

Out of the thirteen (13) elementary teachers-respondents seven (7)

answered that they have not undergone basic seminars on investment funds
while the other six (6) have said they have been into seminars such as
Sunlife, Grepa Seminar, Cooperative (FICCO), banking, Alliance In Motion
(AIM) Global, trading, and other networking organizations’ seminars.
 With regards to the respondents understanding on investment in
general, all of them conveyed almost similar ideas that it involves money
where one expects something in return in some future time. Those who have
undergone seminars stated the following: “Allocate money in expectation of
a higher benefit or return from the amount intended”; “It is a monetary
asset purchased with the idea that the asset will provide income in the
future”; “Earning money”; “Investment in general is like mutual fund that is
professionally managed and pools funds and money from many investors for
the purpose of investing for securities”; “Look forward for future life”;
“savings then you have earned it thru return of investment”; “Investment
means action or process of investing money for profit or material suit”.

Those who have not undergone seminars indicated the following:

“putting money, it allows your money to grow”; “The capital outlay of money
usually income or profit”; “Investment is something we make/do/allocate a
huge amount of money in order to get even more bigger amount of money
as time passes by”; “Entrusting your money to a company. It might gain or
loss profit at the end”; “investment”; “investment is expecting something in
return. It is an asset intended to produce an income”.

Understanding about KAPA

Three (3) of the respondents who have undergone seminars gave a

positive insight about KAPA because of the higher return it offers to its
members. Their responses include: “The objectives/goals about it was
actually good and a lot of people specially those who are poor would be
encourage to invest for the bigger return.”; “It is an investment aside from
helping needy people”; “Investing money for the daily sustainable”. However,
two respondents have both positive and negative thought about it. They
claimed, “Kapa, an investment scheme, is actually or somehow good but
upon learning from it, it just plays and roll our money. Therefore, if no one
pays-in no one pays out.” and “Big granted among us, even donations but
lies behind back”. The latter statement quoted implies that KAPA grants a
higher return even if it is in the form of donations, but it involves lies or false
representation. In addition, one has said a mere general conception that
KAPA is part of an investment.

Whereas the six respondents who have never undergone seminars

indicated that KAPA is a scam or an investment scheme. Two of these
respective elementary teachers-respondents broadly stated, “KAPA is one of
the widely known investments which brought pros and cons to the
investment”, “Well, I think of it as a pyramiding/networking. Whoever
becomes the first members can benefit the investment of everyone under
their level”.

Financial effects of KAPA to the teachers after its closure

Upon the order of President Rodrigo Duterte to shut down the said
organization and other KAPA-like investment schemes, many investors have
expressed their sentiments saying that the closure brought to them some
negative effects in certain aspects primarily on the money they invested.

With regards to the elementary teachers who invested, 7 out of 13

respondents have shared how it negatively affects their finances, for
instance, one of them stated, “More loans. Financial instability”. Other
responses include: “Additional income was totally dropped”; “No more extra
money”; “Loss of interest income to be earned monthly”; “They suffer
financial crisis. They cannot pay the money they borrowed with compounded
interest. How to pay? They lost big amount of money.”; “it results losing the
money we invested”.; “(1) Great downfall (2) the economy was also affected
(3) People were out of budget.”

On the other hand, one of the 13 respondents said, “Since I have

withdrawn my investment a long time ago, its closure never really affects
me”. The remaining respondents however are not affected with the closure
since they have earned back the amount they invested in KAPA.

CONCLUSION

Knowledge on Legitimate Investments

As defined by Fischer, investment is a commitment of funds made in

the expectations of some favorable rate of return. It can be concluded that
regardless if they have undergone seminars or not, their knowledge about
investment are in accordance with the abovementioned definition.

Understanding about KAPA

Regardless of the fact that those three (3) respondents who have been
into several legit investment seminars, they never take into consideration
their basic knowledge about the legit investments on how they view KAPA
upon learning about it. Since they focus more on the positive side of the
higher return offered and on the effect they could have, disregarding the
possible factors to be considered.

However, despite the fact that they view KAPA both as an investment
scheme and a beneficial organization, they let the said beneficial side to
prevail over the total legitimacy of the investment for them to indulge.

Consequently, it can be concluded that elementary teacher-

respondents which have not undergone seminars who have said that KAPA is
a scam, still considered to invest on it.

Thus seminars on legit investments does not imply that one has
already enough proper understanding about legitimate investments.

Financial effects of KAPA to the teachers after its closure

Based on the analysis, it can be concluded that majority of the

respondents’ finances were severely affected because of the closure of KAPA.
The money that was invested came from different sources, some applied for
loans and others used their income or savings just to fund their investment
in KAPA. Those who invested in KAPA through the use of loans as their
source got additional problems since they have to pay for the loan.
Meanwhile, other teachers who have used their savings to invest in KAPA
were not able to receive the return of their investment.

Hence, those teachers whose finances are not affected have already
received their money including the interest in contrast to those finances that
were severely affected.

Recommendation
 Teachers should have enough understanding and knowledge about
proper and legitimate investments through financial advisors and
consultant so as to avoid investment schemes.
