21 Responses to Mutual Funds vs Savings Account

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Mutual Funds vs Time Deposit Accounts | Mutual Funds Philippines

February 8th, 2010 at 12:31 am

[...] Php200,000 I earned P15,124.39 (based from the post Mutual Funds vs Savings Account) [...]

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angel_8

February 13th, 2010 at 12:45 am

what are the risks involved in mutual funds?

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admin

February 13th, 2010 at 1:11 am

small to virtually no risk involved as the money is being handled by seasoned managers.

I have not known anybody go bankrupt or lost money with mutual funds. It’s just a matter of HOW MUCH IS THE RETURN.

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newbiesaver

March 9th, 2010 at 4:30 am

Hi , Good site you have here , I just invested 200,000.00 in TD in my chinabank savings account, if I read this article , I would have invested it in mutual funds instead. Anyways, I’m planning to do both, like what you did and invest some funds in mutual funds , what do you think of the First Metro Invest Mutual Funds by Metrobank ? or what was the bank for your mutual funds ?

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newbiesaver

March 9th, 2010 at 4:31 am

Can you please delete my comments, lol ,my gravatar can be seen, can you email me with your suggestion please? Thanks

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admin

March 9th, 2010 at 6:00 am

hi newbiesaver,

I have different mutual funds on different financial institutions. But I just started to add new ones this year. My very first mutual funds which was used as an example on this site was from BPI. Just this year I tried sunlife and philam because I hear good things about them. I didn’t bought much shares on these new funds though. Still testing the waters.

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sassysaver

April 8th, 2010 at 12:10 am

Hi,

I would like to ask what kind of mutual fund company where you have invested in? I would like to invest in it as well = ) which yield better….and just asking if it is possible if I could invest in mutual fund wherein it could be compounded after getting the interest rate?….i am still studying how mutual fund works.if you yield 15 k in a year how much would it be when you get 60 years old (knowing the average interest rate per annum)? thanks!

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admin

April 8th, 2010 at 8:44 pm

@sassysaver,

My goal for mutual funds is for retirement money. My principle in investment is buy and hold (Warren Buffet way). If you want a compounding effect for mutual funds, every increase in price, you sell your share, then wait for it to go down then buy share using the profit you made during your last selling. Thus, compounding.

It is a manual task and you need to keep an eye on the market. That is why, if the mutual fund is steady going up, why sell? Especially in mutual funds since its always a 1 way direction (most of the time up) I’ll just buy and hold… Gives me more time and less to worry about.

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VL

April 20th, 2010 at 12:49 am

just like others I am starting to learn about investing and found out that it earned annually, correct me if i am wrong, now my question is, are all investment i.e. mutual funds, are for yearly earnings only?

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admin

April 22nd, 2010 at 6:31 pm

@VL,

Mutual funds and any other investment earns or lose everyday. We only compute it for the whole year because of the fluctuations it has for shorter time range (days). Computing the returns for the whole year removes these noises or fluctuations in the computation giving you better assessment of your profits.

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VL

April 23rd, 2010 at 10:23 am

Thanks for the reply, this 1st week of May, I will be taking vacation in our country and thinking to settle for good, I have enough budget that can sustain the family’s need, and the other amount will be invested, what mutual funds would you suggest to invest my money, (investment for my children and my retirement, I am now 35 yrs old.)

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VL

April 23rd, 2010 at 10:25 am

cont…. investment for the schoolings of my 4 children ( 10,7,6 & 1 y/o) thanks.

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admin

April 23rd, 2010 at 10:40 am

@VL,

Hi. I can not recommend the best mutual fund for you. You might need a different type of fund based on your financial criteria. But here is a list of the top mutual fund companies in the Philippines today according to their performance and gains.

http://mutualfundsphilippines.net/mutual-funds-performance/

For the type of mutual fund. I would probably suggest a “balanced fund” because its safe hence, balanced. The company would probably your choice.

If its for the kids, I’ll go for more riskier investment which gives better returns. Combined with the time the kids have and probably years before they would need the money, the profit earned would probably be enough to cover up to their wedding expenses.

It’s always a good idea to talk to each companies’ representative so you’ll know what to expect and how much you’ll be getting in return. I’m sure they’ll be more than happy to answer your questions.

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VL

April 23rd, 2010 at 11:57 am

thank you so much for that information, with that, I think I could negotiate with the suitable mutual fund companies, the most important that I learned from this forum is not to invest in one company, thank you and have a nice day!

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Jonha @ Happiness

June 9th, 2010 at 10:10 am

Well well interesting, I wish I looked into this first before I decided to play with the stock market. Congratulations on earning A LOT in a year! I mean that’s hefty when compared to bank deposits!

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RRA

July 6th, 2010 at 1:15 am

All of you should read John Bogle’s book, “Enough!”. Bogle founded the Vanguard Group and is quite wary of mutual funds. In general, mutual funds underperform their respective indices after fees. Only a handful of them really enhance wealth.

I would recommend picking out your own stocks, if you are so inclined. If not, Warren Buffet’s recommendation is to invest in an index fund instead.

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Anne

July 12th, 2010 at 7:21 pm

Hi! Great website!

Noob here. Do you constantly gain 7% yearly from your mutual fund investment? If so, it’s just like you didn’t gain/lose anything because Philippine Peso’s value decreases at about 7% yearly (as what I’ve heard). Well. Not a bad idea though.

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John D. Vargas

November 2nd, 2010 at 10:10 pm

Hi ,

How much is the minimum investment for mutual funds.

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David

January 24th, 2011 at 4:59 pm

Hello Everyone

Ben Graham .. one of the greatest investors who ever lived ( the man who taught Warren Buffet ) suggested a 50/50 split between bonds & stocks

To make it simple & low cost use index trackers if possible

The way to use this method is as follows

Stocks 50 %

Bonds 50 %

Stocks rise to 55 %

Bonds now at 45 %

Sell off 5 % of stocks ~ re-invest back into bonds

And visa versa

If bond value increases to 55 % , sell off 5 % & invest back into the stocks via the index funds

The beauty of this method is you are continually buying stocks when prices are lower & selling when prices are higher

It’s a very efficient way to invest

I wish everyone good health

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admin

January 28th, 2011 at 3:33 am

@David,

Thanks for the insight. I guess you are pertaining to a defensive investor that have 50 – 50 or so stocks vs bonds.

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David

February 12th, 2011 at 9:23 am

Yes admin , you are correct , Ben G does mention holding bonds of shorter term duration ~ because you can never be sure which way interest rates are heading , although at the moment interest rates are at historical lows so can only rise which are not a good sign for bonds

Interestingly women can often make better investors than men , not because they pick better stocks , but because they are more passive in their approach

Men tend to be overconfident in their abilities & trade too much ~ reducing long term returns

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