Learn to invest in Mutual Funds
I just received my quarterly report about my investments in mutual funds. And I would like to clarify that investing in mutual funds defeats the purpose of putting your money sitting idly in the bank. Though, putting your money in the bank will most likely earn interest, the bad part is, that interest is not enough to beat inflation. Which means, you’re losing money. We have a mutual fund guide if you’re interested.
I have a personal account at a bank and I placed money on it around P200,000… That time, I also bought mutual funds worth P200,000. This was a year ago… I noticed that every month, my savings account would earn something like 50 - 100 pesos due to its interest. Multiplied that number by 12 and you have your 1 year interest of around P1200 per year. Though P1200 is still money considering that you didn’t do anything.
Now lets move on to the result of my mutual funds. My P200,000 worth of mutual funds actually earned P15,124.39 in 1 year. Which is, I didn’t do anything for that money. And is still earning as we speak. This is just 1 year. I’m 25 years old and I plan to retire at age 60. If that would be around 35 years from now and I still put in extra money on that fund, how much would you think I would make out of just the interest? That interest would most likely be able to help me when I retire and enjoy my life.
SAVINGS ACCOUNT - P1200 earned
MUTUAL FUNDS - P15,124.39 earned
This is the goal of mutual funds Philippines. To enlighten you of the benefits of mutual funds. And that it is a good and safe investment. You won’t get rich with it quick but it will certainly help you out when you retire.
Final thoughts, if you have money just sitting in the bank, use it and invest it. Start early, Invest early and time will be on your side. Be financially literate and poverty would just be a fantasy. Of course, keep in mind that you must always have money on your savings account just to be on the safe side. This is your money that you might need in case of emergency. Think of mutual funds as business investment.
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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6 Responses to Mutual Funds vs Savings Account
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) [...]
angel_8
February 13th, 2010 at 12:45 am
what are the risks involved in mutual funds?
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.
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 ?
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
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.