Learn to invest in Mutual Funds
The recent years witnessed the increase in the popularity of mutual funds in the Philippines. In case you’re wondering why, this is mainly due to the fact that most mutual funds offer a lot of advantages over a number of investment options.
But what are mutual funds and why do a lot of Filipinos consider it a sound investment? And how do you go choosing the best mutual fund for you? Let’s try to answer these questions by taking a closer look at the mutual fund industry in the Philippines.
Although it may seem rather complicated, mutual funds can be defined in very simple terms. Simply put, a mutual fund is an investment company that puts together the resources of individual and institutional investors to accumulate a substantial asset base and then invest it in a diversified portfolio of security investments such as stocks and bonds for maximum gain. The professional fund manager may also decide to invest in some short term money market investments, other securities or assets, or a combination of some or all of these to achieve its goals.
Legally speaking, the investors are the rightful owners of the mutual fund company. The shares they purchased represent how big or how small their ownership is. Their shares likewise determine how much income they will ultimately generate from their investments.
So how do mutual funds generate income for its shareholders? Well, they do so in two ways. The first one is through the form of dividends and interests from its investments, and the other one is through capital gains (this happens when the value of the security increases). In any case, the mutual fund company will pass all net dividends, interests and profits to its shareholders in the form of distributions.
Like all other investment options, mutual funds have their own unique pros and cons. On the positive side, mutual funds are managed by an experienced and capable fund manager who does all the heavy work for you – from researching and selecting the most suitable investment options to monitoring your investments. All you need to do is sit down, relax, and hopefully watch your money grow.
Your mutual fund manager will also ensure that your money is well protected from any unforeseen eventualities by spreading them across many different companies and sectors. As the saying goes – never put all your eggs in one basket!
Another attractive feature of mutual funds is their liquidity. Mutual funds are readily convertible to cash, whenever you may need it. Under existing laws, you can get your money within seven days of surrendering it but some companies can give you back your investments within the day!
And the best part is that most mutual funds require minimal investment. Some require as low as P5,000.00 to get you started, so even the average Juan dela Cruz can profit from this rapidly growing industry.
Now, it’s time to tackle some of the disadvantages of investing in mutual funds. Mutual funds may be a low or medium risk investment, but there’s always the possibility that you won’t get a positive return for your investment.
And because the fund manager is the one at the helm of control, you will not be involved in the decision-making process. All you can do is hope that your fund manager will make the best decision for you and the other shareholders of the company. There are also costs and fees involved when you decide to invest in mutual funds, and these can affect your projected returns, too.
You may also need to consider your timeline. Remember that mutual funds are best suited as medium to long term investment.
Taking all these factors into consideration, you can now have an idea whether investing in mutual funds is right for you. If you decide to give it a go, you now need to know the steps in buying a mutual fund.
Now that the hard part is over and you have chosen the mutual fund company you are most interested in doing business with, you just need to fill up an application form provided by an authorized broker and you’re done! Depending on the company, you may also need to pay an entry fee.
Just remember, you need to take a proactive approach in monitoring your funds. After buying your shares, take time to learn more about mutual funds.
We will send you the latest updates and tips about mutual funds in the Philippines.
Mutual Funds Philippines is about learning to wisely invest your money on mutual funds. One of the best investment vehicles to use if you want to be financially free early in your life. You can also find a lot of good advices and tips to improve and guarantee your financial security using different mutual funds investment vehicles.
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50 Responses to How to Buy Mutual Funds in the Philippines
maria cesilia baua
June 29th, 2009 at 7:38 pm
I WANT TO INVEST IN MUTUAL FUND.
maria cesilia baua
June 29th, 2009 at 7:39 pm
please give me the name of contact person and his no. for me to apply in mutual fund
admin
June 29th, 2009 at 7:48 pm
If you happen to be close to a BPI branch, you can visit them and inquire. That’s the easiest way.
shiela parreno
July 26th, 2009 at 7:48 am
i just would like to confirm.. i can go to any bpi branch and inquire how to invest in a mutual fund?tnx..i really really want to invest the soonest possible..tnx much
admin
September 2nd, 2009 at 1:47 am
Yes. BPI is the easiest to go. But you can also go to any financial institution.
ruby palma
October 7th, 2009 at 9:33 am
i want to know who will be the contact person in 1st metro..please email me rubytpalma@yahoo.com..tnx..
adelio m. villegas
October 10th, 2009 at 9:08 am
what is the first step on how to invest in mutual fund? and how and when you can gain profit in it? i am interested and willing to learn. thanks!!!
admin
October 16th, 2009 at 3:24 am
The first step is to find a financial institution of your choice.
richard mariano
November 4th, 2009 at 1:12 am
i want to invest in a mutual fund or cash bonds
ditas g.
November 23rd, 2009 at 5:02 am
Can u connect me on how to make a start or some guidelines in mutual funds investment.How much is the risk involved?
admin
December 1st, 2009 at 9:43 pm
Mutual funds has very low risk. It is one of those investments that are sure to make money overtime. The more time it has, the larger your profits will be. So better start early.
amelia
December 2nd, 2009 at 2:15 am
I want to know where to buy mutual fund? What is the percentage? when will it grow its interest?
admin
December 2nd, 2009 at 2:27 am
You buy mutual funds on different financial institutions. The interest grows per month and year and the amount of interest depends on the condition of the stock market and financial institution you bought your shares in.
But since mutual funds are pool of different kinds of stocks and investments, it is sure to grow steadily with low risk…
AVENCIO BOBILES
December 6th, 2009 at 12:21 am
Where & how can I invest in mutual funds in the Philippines?
joey
December 17th, 2009 at 7:54 am
how can i start investing?I want to join come January 2010 I’m interested with SUN Life
Teresita
December 25th, 2009 at 2:43 am
I want to know ,ore about investing in mutual funds.
Elvir Glenn
December 27th, 2009 at 1:45 am
So, what’s the best financial institution?
johanna
January 1st, 2010 at 12:16 am
how_mush_is_the_minimum_investment_in_a-mutual_fund?
Paco Avellana
January 9th, 2010 at 6:05 pm
If I invest in mutual UITFs, is the returns guaranteed per year? Is this linked to insurance?
admin
January 14th, 2010 at 9:44 am
@elvir
there is no best. Every company suffer losses and gains. You might want to do a research about different financial institution. The decision relies on you. Here are some of the top performers that you might want to look into.
http://mutualfundsphilippines.net/top-mutual-funds-in-the-philippines-2009-1st-quarter/
butch
February 3rd, 2010 at 7:13 pm
have you heard of Grepalife mutual funds? Any feedback? have seen their returns and quiteimpressive.
admin
February 4th, 2010 at 2:50 am
@butch
I have not tried or inquired about grepa life. But will do once I got the necessary funding. Anyone has review on grepa life?
ruel dumaguit
March 10th, 2010 at 1:28 am
in any business its true that the higher the risk the higher your ROR will be..but you can minimize the risk if eventually you will increase your financial IQ. mutual fund is a better a company for people who are starting with a small capital and even to those who has enough.
mona
April 4th, 2010 at 11:50 pm
i’ve inquired @ BPI already but the teller told me that 100k is the minimum required deposit for mutual fund…..is there any company that requires lower minimum deposit for mutual fund?
admin
April 8th, 2010 at 8:40 pm
@mona,
I believe philam life mutual funds and sunlife are around 5,000 only. BPI is one of the top performers that’s why a large minimum first deposit. I actually joined them when it was still 50,000 minimum.
Jonha @ Happiness
June 9th, 2010 at 10:07 am
I am currently investing in the stock market and I believe that mutual funds are great too, because you don’t have to monitor it from time to time especially when you’re too busy. If you’re a newbie in these type of investments, it also takes away the burden of having the need to research a lot and let you focus on what you do best.
katy
June 11th, 2010 at 4:56 am
Hi. I am a college student and I’m interested in investing in mutual funds. However, since I do not have much to invest, I would like to know which companies require a deposit of Php 5,000 – Php 15,000 and how I can get to invest in them.
Thanks in advance.
Jonha @ Happiness
June 20th, 2010 at 6:48 pm
Very well written because most people just invest in mutual funds and hope that their money will grown without considering the cons. However, just like what you mentioned, the pros almost always outweigh the cons. Thanks for such a great and detailed information on mutual funds.
mayo
June 28th, 2010 at 2:12 am
is it possible to invest 5,000 pesos at bpi mutual fund?
bel_cruise
August 27th, 2010 at 7:44 am
I only have 5k for now, can I invest in mutual funds?
ter
September 9th, 2010 at 7:06 am
Hi..I recently inquired to BPI mutual funds, and their minimum investment is 50,000 pesos. I haven’t try any other institutions offers mutual funds..
catherine
October 11th, 2010 at 2:37 am
pls advise me which among these banking/financial institutions that offer mutual funds has the lowest minimum investment of say 10,000.00.
Natalie
October 17th, 2010 at 10:44 pm
Nice article here. This is very helpful to anyone who wants to really secure their financial future.
By November, I’ll be investing on the mutual funds which offer a minimum investment of P5k. I might be investing either (or both) through First Metro (Metro Bank company) or Philequity.
I won’t be afraid of the risks because I have attended some seminars that explain this and mentors in the business who could guide me through. As always, literacy is the key.
I hope every Filipino could have a chance to know this.
geraldine
October 19th, 2010 at 11:52 pm
good day,,how can i diversify my investment on mutual fund with 20k only?thnx
geraldine
October 20th, 2010 at 10:08 pm
im planning to invest on mutual fund but i dont know what financial institution where to inquire that offers the lowest cost of transaction?
ontogmolomo
October 21st, 2010 at 3:03 am
Hi,
Curiosity. Time deposits have insurance like PDIC which will cover upto 500000Php. How about in mutual funds?
Thank you and appreciate your reply.
admin
October 21st, 2010 at 10:52 pm
@ontogmolomo,
There is no guarantee or insurance in investing.
ronald
October 24th, 2010 at 2:21 am
good day admin. I’m an OFW who wanted to invest in mutual fund,and i’ve heard so many psoitive response on this. My question is can i do it on line to avoid going to the bank or any institution since i’m outside the philippines? I want the minimum investment only as start up, can you suggest me any institution that can start with a Php 5000?
admin
October 24th, 2010 at 4:25 am
@ronald,
I’m afraid you can’t do that… You need to sign when buying shares. Perhaps you can do it everytime you return to the Philippines. Or perhaps invest in a mutual fund company located in the country you’re at. Start with a bank nearest to you and ask them about mutual funds.
gladie de roxas
January 4th, 2011 at 4:40 pm
im interested on buying mutual funds where can i buy in the bank? is it compounded interest?
gladie de roxas
January 4th, 2011 at 4:45 pm
i cannot take risk on my investment is this the best investment or treasury bills n bonds> how can i assure that my money is safe even the stock market is down? if i invest 500k in 5years term do you have idea how much is my returned compounded. thank you n god bless.
admin
January 4th, 2011 at 9:26 pm
Hi Gladie,
We already answered you question in the previous post:
http://mutualfundsphilippines.net/top-5-questions-about-investing/
jethro
January 7th, 2011 at 4:31 am
i would like to invest too. perhaps, i can start with 25k.i want to invest 5k per company. can you give me the best 5?
thanks,more power!
mariz
January 18th, 2011 at 7:03 am
How much will be the starting capital? I’m 19. And I hope as early as it could. I’m starting to work now. And I’d like to have a good investment. Please help me. I don’t have enough capital. Where can I find mutal fund requires low capital with low risk and has a sure return?
Janet Miguel
January 31st, 2011 at 5:38 am
Aside from BPI, what more banks that provide mutual fund?
admin
January 31st, 2011 at 6:07 pm
Hi Janet,
All banks should have such investment products.
Edison
February 9th, 2011 at 8:44 am
Hello! Im new here and Im planning to invest. Can u help me what is best bank to invest in mutual fund with 10k php? tnx!
james
March 18th, 2011 at 1:24 am
how and where to find financial institution.
james
March 22nd, 2011 at 5:25 pm
sir can u give me 1 or 2 example of financial institution that you think best for 1st timer in investing mutual funds and were to find?..pls time is running sir i want to invest a soon as posible sir hope you understand..
Marlon
June 11th, 2011 at 2:36 am
Is it as simple as going to FAMI office and fill up the application form to join the mutual fund? How often can we monitor if our money is earning interest?