How does one create wealth? To ordinary people the secret to building wealth is making money and saving money. But to ordinary people with extraordinary wealth – the world’s 26 richest men who own as much as the total wealth of the 3.8 billion people (or 50% of the world’s population) – the secret to achieving financial success boils down to three things: making money, saving money, and INVESTING money (one option is to invest in mutual funds).
The Wealth Secret of Filipino Entrepreneurs
Let us not look far. What do Filipino entrepreneurs like Henry Sy, Sr., John Gokongwei, and Manny Villar have in common? They are all billionaires! As we all know they have amassed a great fortune from their businesses. But little do we know that these tycoons are not only entrepreneurs BUT investors, too! Aside from building income from their business portfolio, they have also built their wealth by investing in stocks, mutual funds, and other financial securities in the market.
Obviously, wealthy people have figured out how to invest and grow their money over time. They have learned not just to work for the money but also to make their money work for them.
MAKING MONEY WORK FOR YOU
Working for money and making money work for you are two different things. The former is all about YOU exhausting your energy and effort to earn a living. The latter is about MONEY generating income for you so that time will come that you won’t have to work anymore, and you will have more than enough means to live the kind of life that you want.
Work is Temporary
Let us admit, we cannot work forever and there’s no job security anymore. Your boss can fire you anytime. What if your company shuts down? No one is indispensable. Gone are the days when attaining a college degree, working for eight hours or more, working abroad, or climbing the corporate ladder guarantee financial security.
Key to Success and Wealth Creation
What then is the key to success and wealth creation? It is MAKING MONEY WORK FOR YOU. How does one make it happen? In practice, it could mean investing in securities such as stocks or mutual funds that will enable you to GROW your money, just like what the rich are doing! Basically, these investments provide investors with passive income as opposed to an employee’s active income.
Some would say, “I don’t have the money, resources, time, and skill to do business. I have been working for years now trying to make ends meet. Do you mean I can I still be wealthy despite being just an employee if I know how to invest my money?”
Precisely! Now, let’s get straight to the heart of the matter. It’s time to unlock one of the secrets to making money work for you – investing in MUTUAL FUNDS.
MUTUAL FUND BASICS:
Investing in Mutual Funds is simple and easy.
To understand it better, I have outlined below some of the fundamentals that you need to know:
- Mutual Fund Definition
- Direct Stocks Investing vs Indirect Investing
- Advantages of Investing in Mutual Funds
- Safety Features of Mutual Funds
- Net Asset Value Per Share (NAVPS)
- Earnings from Mutual Funds
- Classification of Mutual Funds
- How to invest in Mutual Funds
What is a Mutual Fund?
A Mutual Fund is an investment fund that pools or collects money from various investors and invests this money in a wide array of securities such as stocks, bonds, money market instruments, and other similar assets.
When you invest in mutual funds, you are actually buying shares of stocks of publicly-listed companies for the purpose of generating income.
Mutual Fund Shares
Each share represents a part-ownership in the fund, therefore, shareholders participate proportionally in the gains and losses of the fund.
Investing in mutual funds is buying a business that you don’t personally manage. Instead there is a professional fund manager who will manage your fund. This is why it is considered a stress-free way of investing. All you have to do is invest your money and let the mutual fund company manage it for you. In that way, your focus is to work harder so you can earn more, save more, and invest more! Sounds interesting!
Is a Mutual Fund Investment appropriate for you?
A Mutual fund is appropriate for people who have limited funds and insufficient knowledge of the stock market, and who don’t have time to monitor their stocks.
Direct Stock Investing vs Indirect Investing (Mutual Fund)
Some investors prefer direct stock investing or individual stock picking. Here, direct stock investors take charge in trading (buying or selling) stocks online. Traders themselves monitor and time the market. In reality, while investing directly in stocks can provide greater returns, however, it poses more risks than investing in mutual funds.
It pays to have at least a basic understanding of the fundamental and technical analysis of stocks before throwing in the towel to the world of direct stock investing.
Is Direct Stock Investing for you?
Direct Stock investing works best for investors who are risk-takers and experts and have time to monitor their stocks amidst the volatility of the market.
To know if trading suits you, ask yourself, “Do I have sufficient knowledge of the stock market?,” “Do I know how to pick good stocks over the bad ones?,” “Will I have the time to study and monitor my stocks on a day-to-day basis?.” If you answer “yes” to all these questions then direct stock investing is for you.
Unlike investing in individual stocks one at a time in direct stock investing, you invest in a collection of shares of stocks in a mutual fund. You become a part owner of not just one but multiple companies like Jollibee, PLDT, SM Investments, Ayala Land, Meralco, Universal Robina Corporation, GMA7, BDO, BPI, and other Blue Chip companies. Great! You will not only be a consumer but also a shareholder of various companies.
What are the Advantages of Mutual Funds?
Professionally Managed.
Mutual Funds are managed by professional fund managers who have the competence to select stocks and the time to study and monitor the funds. The fund manager, along with his/her research team, strictly monitor local and global stocks, 24/7.
Affordability.
The initial investment amount varies depending on the type of fund. Certainly, there are funds that offer an initial investment as low as Php 1,000 and a minimum additional investment of Php 500.
Liquidity.
Investment is redeemable (withdrawable) anytime! So you don’t have to worry not getting your money when you need it. Mutual Fund companies are mandated by law to pay investors within seven (7) banking days from the time of redemption request.
Redemption request may be made via email, facsimile, or over-the-counter. Payment, on the other hand, can be made through direct bank credits or check pick-up, at the discretion of the investor.
Diversified Investment.
Investing all your money in a single company could be highly profitable but it could also be risky in such a way that you might lose 100% of your capital. It is therefore recommended that you diversify your money into different investment vehicles to reduce this risk. One way to do it is to spread your money into stocks, bonds, real estates, and savings accounts.
Convenience.
You may open an investment account with a brokerage firm or through a broker, agent, or solicitor. You may fund your account by depositing the amount in any of its accredited banks or via online bank transfers. Once your account is open and funded, you can now use it to buy your mutual fund shares.
Highly Regulated.
Mutual Fund Companies are highly regulated by the Securities and Exchange Commission (SEC), and are governed by the Investment Company Act (ICA) of the Philippines. This encourages investor confidence since their interest is protected by the law which is enforced by an authorized agency.
Stress-free Investing.
Investing in mutual funds spare investors from the tedious work of researching and studying of the stock market. It frees them from the burden of constantly monitoring their stocks especially during any market downtrend. It also liberates investors from the emotions that come with it such as fears and worries, enabling them to focus on their priority like business, family, or job.
What are the Safety Features of Mutual Funds?
Here are some of the implementing rules adopted by SEC, and the mandates of the Investment Company Act that aim to protect the investing public:
Organization and Required Capitalization. Mutual Fund companies are organized in the form of a stock corporation. All members of the Board of Directors should be Filipino citizens. They should also have a minimum paid-in capital of P50 Million. This capital requirement provides the fund with greater purchasing power, liquidity, and resilience against economic crises.
Common Stock with Voting Rights only. All shares of stocks of Mutual Fund companies should be common and voting. This basically means that the shareholders, who occupy the highest positions in the organizational structure, have a voice in significant decisions such as in voting and electing Board of Directors.
Waiver of Pre-emptive Rights. The Articles of Incorporation shall include this provision so that shareholders need not to worry about dilution of their ownership or proportionate interest of the fund.
Liquidity Requirement. The SEC requires that at least 10% of the fund should be invested in liquid or semi-liquid assets to ensure sufficient liquidity and cover possible redemptions by investors.
Custodianship. ICA requires that all proceeds from the sale of an investment company shall be held in the custody of a duly authorized local commercial bank of a good repute or a company which is a member of a securities exchange.
Objectives Subject to Approval. The investment objectives of an investment company can only be changed upon the approval of its shareholders. Any changes in the objectives thereof must also be duly stated in the fund’s prospectus.
OTHER SAFETY FEATURES
Investment Limitation. Investment companies are not allowed to invest more than 10% of its net asset value in a single company.
For example, the maximum investment that a company can make in Jollibee Corporation alone should be not be more than 10% of the fund’s total net asset value.
Unallowable Investments. Investment companies are not allowed to invest in the following:
- Margin purchase of securities
- Commodity futures contracts
- Precious Metals
- Unlimited liability investments
Limit on Expenses. The total operating expenses of an investment company shall not exceed 10% of its total investment fund or net worth as shown in its previous year’s audited financial statements. This is to discourage them from incurring excessive or unreasonable expenses.
Limit on Borrowings. Investment companies may borrow or incur debt provided that there is a 300% asset coverage for all its borrowings. In case a company exceeds the 300% rule on borrowings, it shall be given 3 days to bring the coverage back to 300%.
Redemption of Securities. Investment companies are required to compute the Net Asset Value Per Share (NAVPS) on a daily basis and this should be published in at least 2 newspapers of general circulation.
As mentioned above, in case of redemption, the fund is expected to pay the investor within 7 days from the date of their redemption request.
Investment Company Manager. Any person who acts as a manager or adviser of an investment company must register with the SEC and he must have a net worth of at least P10 Million.
Reportorial and Disclosure Requirements. Investment companies are required to submit monthly reports to the SEC indicating the following:
- number of shares sold and the total amount received from the sale of shares
- quantity of shares redeemed and the total amount of redemption
- total number of shares outstanding at the beginning and end of the month
- percentage of the outstanding shares owned by Filipinos
What is Net Asset Value Per Share (NAVPS)?
Net Asset Value Per Share refers to the difference between assets (at current value) and liabilities, over the number of outstanding shares. NAVPS changes daily. To find out the updated NAVPS of all mutual fund companies in the Philippines, simply click the mutual fund icon below homepage:
How do you Earn from Mutual Funds?
Earnings may be in the form of:
- Capital Gain or Capital Appreciation. This refers to the gain from the sale of the securities. Ccapital gain is the difference between the NAVPS at the time the shares are bought and the NAVPS at the time the shares are redeemed.
- Dividends (cash or stocks) earned on stock investments
- Interest Income on debt securities such as bonds and treasury bills
Classification of Mutual Funds
A. Equity or Stock Fund.
This fund invests primarily in shares of stocks. Fund managers, invest a little portion of the fund in fixed income securities.
An equity fund normally provides investors with a higher possible return but posts higher risk. The average historical rate of return of equity funds in the Philippines is around 18%.
This fund is appropriate for:
- The Aggressive type of investor whose aim is capital appreciation, growth and with some income.
- Risk-takers. This is for investors who are willing to take more risk.
- Younger people. If you are young, say, in your 20’s, investing in equities is a good option. Why? Because you have longer time to let your money grow and tolerate the ups and downs of the market.
But again, assess your risk tolerance, identify your objectives, and determine your time horizon to know if investing in equities is right for you. Better ask a financial planner to help you understand it better.
B. Balanced (or Hybrid) Fund.
This fund invests in a mix of stocks/equities and fixed-income securities, usually a balance between the two. The average historical rate of return of a balanced funds is around 12%. This fund is appropriate for investors whose want safety and capital gain. If you want a higher return but minimal risk, you can start with a balanced fund.
C. Bond or Fixed-Income Fund.
This fund invest mostly in government bonds and corporate bonds that earn fixed interest and maturity. Fund managers invest a little percentage of the fund in money market instruments like commercial papers. This fund is relatively safe but could only provide investors with minimal return, around 6% to 7% on the average.
It is safe to invest in this type of mutual funds because you are basically lending your money either to the government or a corporation with good credit standing. If you are a conservative investor who wants a steady cash flow or if you are nearing retirement with shorter time period to invest, this fund could work best for you.
D. Money Market Funds. This is short-term investment in fixed income securities such as treasury bills, commercial papers, and certificates of deposit.
This fund is generally safer but offers a lower potential return than the other types of mutual funds. This fund is a good alternative investment for people who plan to redeem their money in less than a year’s time.
E. Index Fund. This fund simply tracks the performance of a specific index such as the Philippine Stock Exchange Index (PSEI). When you invest in this type of fund, you are actually investing in a portfolio of stocks that have almost the same weights and composition as those of the composite index of PSE.
Since this fund is just a simple tracking of an index and fund managers do not need to do extensive research, it tends to have lower costs and fees than other funds.
The above-mentioned funds are the most popular in the market. There are, however, other funds from which investors can choose from such as Exchange-Traded Funds (ETF’s), Specialty Funds, and Global Funds.
How to Invest in Mutual Funds
Investing in a Mutual Fund is just like opening a savings account in a bank.
Step 1. Open an account.
Mutual funds are distributed by authorized brokerage firms and brokers.
To invest in mutual funds, open an account with a trusted brokerage. If you have none yet, I could recommend a brokerage firm with which we are currently transacting our mutual fund investment accounts. Check out Why I Invest in Mutual Funds through IMG.
Step 2. Fill-out the following forms:
- Investment Application Form (IAF)
- Investor Risk-Profiling Questionnaire
- Account Opening Form (AOF), and
- Signature Card
Attach the following required documents:
- Photocopy of 2 valid ID’s. (Don’t forget to affix your 3 signatures).
- For joint accounts, attach 2 valid IDs of the primary and the co-investor. For In-Trust-For (ITF) account, attach a photocopy of Birth Certificate.
Step 3. Pay through its affiliated banks or through online money transfers.
You may also transact directly to the brokerage firm through cash or check payments.
Important Reminder: As you fill-out forms, make sure not to leave any information blank. You should also have your Tax Identification Number (T.I.N.).
For students, you may supply you parent’s T.I.N.
According to the Philippine law, any person of legal age (18 years old and above) in the Philippines may invest in mutual funds.
Whereas for investors abroad, please note that all documents should be original so you may submit them through courier.
FINAL THOUGHTS
All things considered, investing in a mutual fund gives anyone with zero or little experience a fresh start to develop his/her earning potential.
You don’t need to have a lot of money before you can start investing. You also don’t have to devote time in managing it. What is more important is you align your goals with your investment strategy. Invest early. invest regularly, invest long-term.
The rule of thumb is: Don’t just work for the money. Make money work for you! Build your wealth. Invest in mutual funds!
Happy investing!
Your feedback is important to us. Please feel free to comment below.
About the Author
Divina Gracia M. Cabaddu
Disclaimer: The information on this site is provided primarily for discussion purposes only, and should not be misconstrued as an investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
* Pag nag invest po ba ng 5000 pesos ilang percent po yung brokers fee? And then pag nag addtional 1000 or more per month po mag kaltas po ba?
* Paano po malalaman na kumikita n ung investment?
*Paano po kung gusto po mag invest sa stock fund at may kaalaman po sa tungkol sa stocks, mataas po ung risk tolerance pero di po marunong mag monitor ng stocks? Katulad po naming 20 years old.
* Paano po mag invest sa Bond fund? Affordable din po ba yun katulad ng mutual fund?
* Why an investment company is not allowed to invest in precious metals? Hindi po ba nag aappreciate din ung value nila?
Thank you po! 😊
Hi, Romelyn 🙂 For mutual funds, broker’s fee is part of what we call “sales load fee” or entry fee. For P5,000 initial investment, sales Load fee could range from 1% to 5% depending on the mutual fund company and the type of fund – equity, balanced, bond, index, etc.. One mutual fund company in the Philippines charges 2% on equity fund. Another top-performing mutual fund charges 3.36% on equity fund, and 1% on its bond fund. There are brokerage firms though that do not charge sales load fee.
As for your next question, pano malalaman kung kumikita ang investment, in mutual funds merong tinatawag na net asset value per share (navps). any increase in it would mean capital gain for you. For example, if in Jan 1, 2017 you bought shares at P1 and two years later the NAVPS went up to P100. The difference of P99 per share (P100-P1) is considered your capital gain/profit.
Being knowledgeable in stock but having no time to monitor them would put you at a higher risk. If you dont have the time to monitor your stocks and you want to lessen the risk, you may choose to invest in mutual funds rather than invest directly. The fund manager and his team will do the monitoring for you.
Investing procedures in a bond fund is basically just the same as equities. There are bond fund and equities with a requirement of P5,000 initial investment.
And for your last question as to why investment cos not allowed to investment in precious metals like gold, silver and platinum, I think it has something to do with the risks associated with them. These are mining stocks we’re talking about and generally, their risks are higher compared to other types of investments. These are volatile investments whose value my jump or go down unpredictably in any given year. It does not also pass the liquidity requirements of the law that says that mutual funds should always be liquid or with readily available cash for any future redemptions.
I hope I answered your questions clearly, Romelyn. Thank you and happy investing!
I really find Mutual Fund exciting. It sounds “millions of money”. not just millions but can also be billions if one starts early in investing in this kind of investment company. This is really good for us, students and soon to be employee and very soon an entrepreneur, investor of our own choice. 🙂 Let our money work for us.
More learnings! Happy reading everyone! 🙂
Hi, Sheehan! If you start early, there’s a great potential for your money to grow and earn millions or even billions! With the right mindset and strategy, armed with sufficient knowledge and discipline, I believe you can definitely make money work for you in the near future!
while reading this article, it feels like, i’m still reading the book of Thomas J. Stanley and William D. Danko, which entitled “The Millionaire Next Door” FULL OF LEARNINGS 😃 I believe that INVESTMENT with SELF DISCIPLINE are the key factors in building wealth. This article helps me to start now my financial goal towards to financial independence, but I know to achieve financial independence, it is important to have financial planning, because if I not start early, there’s a lot of investment opportunies will pass. Failure to plan is one of the reason to failed to success. So from now on, I will train my self in proper allocation of my time, energy and money. Honestly I’m the kind of kiddo who loves to spend money in terms of FOOD 😄😄😄 HAHAHAHA. Reading this article made me realize that Financial Independence is more important than displaying a high consumption of goods, products and services. So to end up my comment. First I want to congratulate the author of this article to give us knowledge. Ma’am thank you so much! You never fail to give us more and more learnings. Congrats Ma’am. Continue to give more knowledge to pilipino’s. God Bless and more powers to your Financial Advocacy.
*I want to ask ma’am because im quite curious, what classification/type of mutual fund is your preferable for a graduating student who have plan to start investing? thank you ma’am 😃
Thank you, Kris for that wonderful sharing. Continue reading and learning. That’s the best investment of all.
For graduating students like you, my recommendation would depend on your goal, your risk tolerance and your time plan among others. The type of mutual fund that fits you depends on those factors. But, assuming you are investing for your long-term goals and can take more risks, and considering that you’re still young, I would advise you invest in equity/stock fund.
Good evening Ma’am Divine!
I find it really interesting and at the same time, I was so glad because before reading it, I’ve already read the topic “mutual funds” on our security analysis which is explained broader in the article. Actually, I love reading about investment articles since that it’s my goal for this year, to start investing in mutual funds because I know, few months later, I will be having a source of income and a great opportunity to invest.
For my questions, I’d like to ask the following:
1. For this year 2017, what are the investment opportunities waiting for us beginners?
2. Is it okay if I will start in mutual fund and at the same time on direct stocks? What are the consequences?
3. If I will redeem my investments, say, 30 years from now, assuming that I will start now, what will be the assurance that the investment company I’m investing with, will still be existing for the next 30 years? And what will happen to my investments if it doesn’t exist on the time of my redemption?
4. Can you share some strategies you’ve done before, when you were only starting as an investor?
I’d like to be a great investor like those who really succeeded in that kind of activity. This is also one of the reasons why I loved financial management because it really reflects my passion. But as a student, knowing those theories, terms, and facts about investments are just a simple guides for a beginner. I’m looking forward to know the technical part of it like the actual application of the lessons, such as actual investment and computations, to be completely satisfied. And I want to have such financial advisers like yours, and you, as a product of great investment advisers, and an experienced investor.
That’s all, for now. Thank you for sharing your thoughts to the world.
LILEN A. BALCARCE
Financial Management Student,
Pamantasan ng Lungsod ng Valenzuela
Hi, Lilen! I am glad that you’ve found this article helpful in your Security Analysis subject.
1. As for investment opportunities, there are a lot! The Phils is now one of the fastest growing economies in Asia making it a sweet spot for investment. Growth is evident in the various sectors and industries. A lot of businesses have been profitable and continue to soar. The government is also keen on improving infrastructures, and even the agricultural sector. You have a lot of options where to put your money. This is an opportunity not only for beginners but for every one to invest and grow their money.
2. Yes, investing in both mutual funds and direct stocks at the same time is perfectly okay. At least you get to compare their performances. Well, each of them has advantages and disadvantages so make sure you know what those are.
3. What will be the assurance that your investment would still exist 30 yrs from now? That I cannot answer. It’s like saying that no one could actually guarantee that Jollibee and SM would still exist 3 decades from now. No one, not even experts could predict the stock market’s performance tomorrow or in the next years to come. But if you are optimistic and you firmly believe in the fundamentals of the company, then invest and take the risk.
What happened if the companies do not exist anymore by then? That’s the downside when you invest directly in stocks. You lose 100% of your investment. That’s why diversification is really impt.
4. There are strategies that I still use up to now like money cost averaging or regular investing. I do that consistently every month. Actually I started with direct stocks with little knowledge at that time but I guess I was just fortunate to have picked great companies using fundamental analysis. After a while I was introduced to mutual funds. I started with balanced funds but eventually transferred to equity fund since most of my goals are long-term. My mutual fund weighs more than my direct stocks in my portfolio, and it’s because I am more of an investor than a trader. I would rather focus on my work and passion than trade and monitor the prices of my stocks.
That’s it! Hope I have answered them well hehe. Anytime, Lilen. Just contact me. I’ll be more than glad to help you start investing.
Reading this article was very interesting because every scroll that I did, I learned a lot. Knowing more about investing are wonderful for me as a student because this article gave me more knowledge about Mutual Funds and also it may set as a guide for me because I want to be an investor someday. After graduation, and I have a work, I’m planning to invest in a Mutual Fund that’s why I already had my TIN number and also my identification card because my beloved adviser thought us that it is one of the requirements for investing and I’m so happy to have that. I believe that Mutual Fund is a key to start my investment and also my journey to a financial freedom. Thankyou for this wonderful article. And I hope that you will give us more knowledge. Happy Reading!
I learn a lot about this article that Mutual Fund is one of the key to build my Financial Freedom in the future. During my High school days I have a plan to work hard to get more money and save it in the bank, I don’t have any idea about the stock market in that day. During my three years in college I have a little knowledge about this kind of stock, I excited about this article because I learn that Mutual Fund is less riskier than Direct stock and the government have a secured regulation about this securities. And its managed by Professional, it is diversified investment because the stock diversify in the large capitalization company, and it liquid and easy to redeem, and stress free investment. I learn that how to earn from Mutual Fund this are capital gain the amount of your stock increasing, dividend the company gave dividend like San Miguel Corp. I learn that it is not allowed to invest more than 10℅ in one company. I share about the mutual fund in my relatives. Thats all thank you.
I learn a lot about this article that Mutual Fund is one of the key to build my Financial Freedom in the future. During my High school days I have a plan to work hard to get more money and save it in the bank, I don’t have any idea about the stock market in that day. During my three years in college I have a little knowledge about this kind of stock, I excited about this article because I learn that Mutual Fund is less riskier than Direct stock and the government have a secured regulation about this securities. And its managed by Professional, it is diversified investment because the stock diversify in the large capitalization company, and it liquid and easy to redeem, and stress free investment. I learn that how to earn from Mutual Fund this are capital gain the amount of your stock increasing, dividend the company gave dividend like San Miguel Corp. I learn that it is not allowed to invest more than 10℅ in one company. I share about the mutual fund in my relatives. Thats all thank you.
This is not my first time reading the meaning of mutual fund since it was already discussed before by my professors. When I first encounter the meaning of these words I just don’t care and memorize it since it’s required for me to answer the exams. But then right now, I just can’t seem to do not care about these words because I know that these two words are one of the key for me to achieve one of my dreams in life and that is to become a millionaire… no scratch that, what I mean is to become a billionaire just like Warren Buffet.
Every time I read articles about investments I can’t help to think about the future and wished to make time fast so that I could graduate as soon as possible, have work, and have an investment in mutual fund. I wanted to work and at the same time make my money works for me. Aside from making my money works for me, I can be a part-owner of some blue chips company in the Philippines.
I also learned from this article that even the minimum earner people can have a privilege to invest in mutual funds as long as they have the courage to discipline their selves in saving money. Many Filipinos are telling that they cannot feel the growth in our economy while foreign investors are the one who felt it because they’re taking advantage to the growth in our economy. Through investing in mutual funds, you can now be an investor, feel the growth in our economy and as well as help in the growth of our economy.
As for my questions because aside from planning to invest in a mutual fund, I am also planning to try to invest in a direct stock,
1. If I want to invest in direct stock where would I inquire or apply?
2. If I will be investing in mutual fund or direct stock what companies would you suggest for me to invest in?
3. If I’m going to invest in mutual fund or direct stocks, during what month of the year did the price of stocks always goes down?
4. In monitoring my investments, what are the websites that I need to visit?
That would be all. Thank you for sharing this one ma’am. I just hope that I can share this article on my facebook so that many people can have an access with this cite and can have a lot of learning’s from this. I hope that many people with get inspired upon reading this.
Jenevieve C. Hije
Thank you, Jen for sharing your learnings. As for your questions:
1. If you want to invest in direct stocks, you should look for a broker/brokerage firm. There are traditional and online brokerage companies to choose from. Have a background check and make sure they are duly registered with SEC.
2. Again, in a mutual fund, it’s the fund manager who will select the companies and allocate the fund. In direct stocks, investors do the the pick, select, study and monitor. There are companies whose fundamentals are strong and those are the companies I would recommend. The very basic rule is, look for a company that you think would still exist even 2o or 30 yrs from now. Companies like SM, Jollibee, Ayala Land, PLDT, BDO are doing well for so long. Although one cannot guarantee their sustainability and growth but if you are optimistic, investing in these companies could be an option.
3. No one can really time the stock market. The ups and downs are unpredictably fluctuating. It would depend on a lot of factors or events that could transpire in any given month or year.
4. Mutual Funds have websites. You may check the daily NAVPS or read their updates there. We also have the Philippine Investment Fund Association (PIFA) that provides the complete list of all mutual funds in the Phils and their performances. You may click the mutual fund icon below this page to get the latest update from PIFA.
You are most welcome, Mariel!
This article gives me new information that can be added to my knowledge about Investment. I heard investment for almost 2 years from seminar in our General Assembly that the speaker is convincing and when I learn more and more about investment I am encouraged and excited to enter in this type of environment and I keep saying to myself, I want to invest , I want to invest, but one question is still unanswered till, that question is, HOW TO INVEST ? what do I need to do to invest do I enter some establishment and ask to buy their stocks ? any institution that should I go ? then now I know thanks to this article ! also there are some clarifications I want to ask.
1. If a investment in mutual fund can earn by appreciation and dividends, what if they gave you dividends for the investment and not capital appreciation, how do they gave you the cash that you earn in mutual fund ? posible po ba na mangyari ang ganyan ?
2.And as I read po from comment questions and answers, if we invest 5000 then my makukuha po yung broker na sales load fee, that means po ba hindi exactly na 5000 ang investment ko po?
Thank You po ! Happy Learning ! 🙂
Hi, Melanie 🙂 Good questions.
1. Typically, dividends in a mutual fund are automatically reinvested. You may redeem your investment based on the number of shares that you own. You may redeem half the portion or your entire ownership. Normally, mutual funds will pay you through checks, or bank credits, and not necessarily cold cash.
2. Yes, kapag may sales load ibig sabihin ibabawas sa amount na iinvest mo. So it would be better if you choose a brokerage that doesn’t charge any sales load. Personally, my mutual fund investment have no sales load kaya buong buo na naiinvest ang pera ko.
This article is like a garden of information about Investment, I’ve heard a lot about investment from time to time, adding more knowledge and keep on learning, it’s a very long process of money working for you so in the future when you needed it or retire, it gives you the reward you earned from those years struggling from every Risk your investment take. It’s like a seed you planted and grow to a fully develop tree that can provide your needs. As I said it was very long process, years and years of waiting, and how do you keep or encouraged investors, as we know that we are now in a bear market, and my other questions is How does Phil. economy responds from the Trump Administration that foreign investors pulled out i think a lot of their investments here in the Phil. to be invested in US in the forecast for Trump Administration. how is the state of the economy ? the businesses that the investment were pulled out from ? and how do you explain this type of event an opportunity or threat to the prospective investors ?
Isa pa po, last na po, just a clarification lang po about does investment or selling stocks is like a DIRECT SELLING type of business like Chinkee Tan did it’s just the products are different ? please clarify because i thought when talking about Direct Selling I think of pampapayat, pampaganda, etc.
Thanks po for information and knowledge you’ve shared to everyone who visited this site, thanks for expanding the ways you can share your knowledge about investments and others, that now every people using the web can now learn and have a chance to change their lives and reach their dream of Financial Freedom 🙂 Keeping Spreading knowledge, Keep making a dream come true and Don’t Stop Learning 🙂
Hi, Khristopher. How is the state of the Philippine economy?
We are undeniably one of the fastest growing economies in Asia right now. When you look at our GDP, our BPO industry, OFW remittances, businessed and foreign currency reserves. But we are not immune to any event or issues that happens locally and globally. In fact after the triumph of Trump, we’ve seen the how the peso weakened against dollar. It was indeed one of the weakest value since 2008. The stock market also lost 5.7% right after US elections. You win some, you lose some as they say. But a lot of analysts are saying that all these negativities are merely temporary. Why? Because the Philippines’ fundamentals, needless to say, are strong.
2. Selling stocks and direct selling are two opposite things. Direct selling is not an investment, that’s for sure. Do not ever construed the two as the same.
In direct selling, products like those you mentioned (most commonly soap, supplements, and other beauty products) are being sold directly to customers. You see tangible products here, right? And most of these products are for consumption. You buy soap and use it then it’s gone.
Investing in stocks is buying shares of stocks or ownership of companies. These are paper assets and they are intangible. They are what we call “financial products.” When shares are sold to you, they give you confirmation receipts. And they invest your money to grow. When you invest, there’s an opportunity for you to earn profit.
Again, direct selling companies sell tangible products that are for consumption. While investment companies sell intangible/financial products that have the potential to appreciate in value over time.
Hope I was able to clarify the issues. Thanks, Kristopher!
I found this topic so useful because I want to know the flow in investing in mutual fund. Im just a student and I interested in investing in stocks but im just a beginner and so afraid to lose money that i earn will just be swept in the air. But as im reading this article i underatand the rights of the holder and that you can invest with a minimal risk. I love this article. But there are some questions running in my mind. I hope you can bear with it please
How mutual fund helps ordinary student like us and in what way they secure the investments of the student.
What are the requirements in investing in mutual funds
What type of share class would you recommend for students and part time employees?
How can you assure that the investments of stockholders is in a good hand?
What recommendation could you give to a prospect investor who wants a high interest but has a low risk in investing
Hi, Jemro. The safety measures are already stated in the article. That would more or less provide an insight on the security that beginners and students expect when they invest in mutual funds. The requirements also are already stated in the last part of the article.
For students and part-time employees and for anyone, it’s very important for me as a financial planner and as a broker myself to assess first the profile, the objectives, risk tolerance, of the prospective investor etc before I give my complete recommendations. But generally, the mutual funds investments that were discussed here would already be a good starting point for beginners like you. We just have to identify what type of mutual fund would be appropriate for you.
Investing is not risk-free. The return of your money would depend greatly on the competence of the fund manager and the stability and reputation of the mutual fund company. So make sure you study and do background checking in choosing your investment company.
There’s no such thing as high return and low risk investing. Remember, the higher the risk, the higher the return. That is the real nature of legal investments.
Be careful of those people or entity that would tell there’s an investment that can give you a high return but low risk. Chances are, it’s a SCAM. A lot of people fall into this notion that money can grow overnight at a tremendous return. They only consider the return, and ignore the risks involved. It’s greed and the lack of financial intelligence as the culprit why scams abound.
Thank you so much Ma’am Divine for sharing your knowledge about mutual fund. I find it very helpful because right now I am already saving money alloted for investment. I already have 5000 pesos from my own savings and from my scholarship but I dont have T.I.N yet. I’m already decided that after graduating and finding a job I will definitely invest the 30% or more of my monthly salary. I learned from Bo Sanchez the two stages of our financial life, the first is man works for money and the second is money works for man. I want to reach the 2nd stage. I know that I need to work for money first and investing is one way of getting to the 2nd stage. Once again, thank you so much ma’am for giving us learnings, being an inspiration and a role model to all of your students.
You are most welcome. Continue saving, Anjanette. Invest early and make money work hard for you. Goodluck!
Good day Ma’am and Sir!
Finally, some questions in my mind are answered already regarding with this article. Since then I want to save and earn money on my own. Having article like this, It helps me a lot to fully understand what investment is. As a student, at my young age I saved money everyday and I have a discipline on how to use it, with the help of Ma’am Divine and your website, Financial Literacy Advocacy through IMG I do encourage to invest early, with an early retirement as one of my goals. I want a long term investment as well. I always thinking about my future financial freedom, Every talk of our professor Ma’am Divine I am very inspire with her. Her financial life, her investment and even her career now. As I read this, I finally convince me to save more money then after I settle it I do the membership program of IMG thru Ms. Divine before I invest it in mutual fund. Regarding with monitoring of my money if ever, I already an investor I’ll take over with those Fund mgr. who are trusted in their field. After graduation, My first target is having a membership with IMG whose I believe that it is safe organization that will help me a lot to be a good investor someday.
Now, I encourage my classmates, friends, co-churchmates and even my family to start investing their money that sometimes they only spend it for their leisure time instead. I’m basically think that if they invest it now, in the near future they will have time to relax more with their loveones and having enough money without compromising their time with it. I learned a lot!
PS: Is my 20 pesos savings a day is a good habit for me? 🙂
Thank you for the nice words, Sarah Jane. Your 20 pesos can go a long long way!
Let me show you an example. If you develop the habit of saving 20 pesos a day, that would give you 600 pesos in one month, right? If you invest 600 every month and you do that consistently for the next 35 years, invested at a conservative rate of 12%, did you know how much will be your money by then?
It’s P3.5 million! Wanna check it out? Did you see the WEALTH CALCULATOR icon at the bottom part of this page? Pls feel free to explore that so you’ll know how much money you’ll have if you increase or decrease your savings, or how much retirement will you have. Our wealth calculator will do the computation for you. It’s fun. Try it!
Upon reading this article, I really appreciates the effort and concern given by those educator about Financial Literacy.. However, while reading this article two questions have been entered into my mind. First, since our country is no longer a third world country, I wonder how mutual fund like you contribute to our economic growth and monetary system/policy ? Another thing is, we all know that nowadays the biggest factor behind the continous growth of our economy is because of the service sector especially BPO and those OFW who are working abroad. As an entity, Do/did you conduct/ed seminars for those citizen of ours working beyond our economic boarders? How is/was it? Did you go abroad just to do it or you just wait and let them approach you??? Thank you once again and More power to your team..Godbless
Entines, Charmaine L.
FM 4-2
Pamantasan ng Lungsod ng Valenzuela
Hi, Mhaine. I particularly like your question as to how mutual fund contributes to our economic growth. For one, investing in mutual funds is buying a business. As an investor, you are actually helping businesses to raise capital for their expansion and growth. Consequently, when companies expand and grow, it’ll create more job opportunities for people. More jobs and stable income would improve every family’s standard of living and therefore would enable them to buy more and improve their quality of life. My fave mentor once said, “If we want to become a prosperous nation, we have to be made up of prosperous people.” If all people are investing, money just flows and it’s good for individuals, businesses, and the economy as a whole.
You are right about BPOs and OFWs’ contribution to our economic growth. OFWs, in particular, have played a tremendous role in sustaining our foreign currency reserves. Yes, we did conduct financial seminars abroad. The good thing about our advocacy is that we not only get to travel but we also get to be invited to talk and we get to experience for ourselves the life of our fellow pinoy abroad. They are one of my fave audiences bec they know the importance of money and put value on it bec they have experienced how hard it is to earn money. OFWs are very receptive to learning. Once they understood they’d invest right away. May be bec they already have the money; they just dont know where to put it. They are more appreciative. Here in the Philippines, it’s quite a challenge to approach and convince people to invest. Maybe it’s bec of scam and our financial ignorance.
I spend time to really invite people to attend financial literacy seminars as part of our advocacy but I tell you, nothing comes easy. Some people would start financial planning right away but majority would just let the opportunity pass.
Sobrang informative ng Article na ito, unang una dahil nalaman kong sobrang convenient pala ng mutual fund di tulad ng iniisip ko noon. Kung wala kang sapat na kaalaman sa stock market, wala kang oras para mag-supervise ng iyong investments, o kung magsisimula ka pa lang pumasok sa mundo ng investment. It is highly recommended to go on mutual fund talaga. Hindi mo na kailangan mag-alala araw araw at mag-abang ng mga balita dahil ang mga fund manager na ang bahalang mag-manage ng in-invest mong pera para sayo. Sobrang affordable mag-oopen ng account for as low as P5,000 may initial investment ka na, and its up to you kung gusto mong dagdagan pa ang iyong investment. Plus classification pa ang mga uri ng mutual fund para ma-identify mo kung anong type ng investment ang sa tingin mo para sayo.
Nung una iniisip ko kung paano makakapag open ng account, at nabasa ko dito, ayun nga pwede pala mag open online. Does it mean pwede po ako mag open ng account kung sa ibang bansa po ako mag-tatrabaho? Or kailangan pa po ng someone na mag-poprocess ng mga requirements dito sa Philippines?
Thank you po sa learnings!! 🙂
You have understood mutual funds in a simple but effective way. You were able to get to its very core without having to elaborate.
Yes, pwede mag open ng online account. But the forms and other documents should be submitted in the offices here. Forms may be photocopied but the signatures should be fresh and original.
You may ask someone to do the processing for you here in the Philippines.
Its a pretty good idea working hard while our money working harder for us. With the help of mutual fund, people having insufficient knowledge and time in monitoring investment makes investing possible.
For my question maam, i just want to know if theres mutual fund offering investment with insurance in one?
A mutual fund is purely an investment. It has no insurance attached to it. I think you are referring to a type of insurance, which is bundled one or what we call a “variable insurance” that normally comes with investment. There are many insurance agents offering variable insurance and people would have different views about it. But personally, my strategy is BTID – But Term, Invest the Difference. I buy term insurance than a variable insurance. Whatever I save, I invest.
Mutual Fund is a convenient way to invest in a stock market. I learned a lot about Mutual fund while reading this article, knowing that everyone can invest as long you’re in a legal age, there are many Mutual funds here where you can invest your money that featuring different objectives and we are sure that our money is safe because it is manage by the fund manager who has a professional management and we have nothing to worry about it. but before investing you must know your risk tolerance first, as i learned. i acquired more knowledge about investing and i learned that it is better to put your money in an investment rather in a savings bank, because putting your money in one basket is more risky rather you diversify it , that can help my decisions when i plan to invest soon, it opens my mind that as long long you’re still young invest in mutual friend for you have more time to go your money. When i read this article i inspired to be like Henry Sy, John Gokongwei and many successful businessmen/investors here in the philippines. That’s why if i get the job i will set aside a portion of my salary invest in stock market. That’s all thankyou!
Wonderful learnings, Bryan. Good, set aside a portion of your salary and invest it in stocks.
Hi 🙂 This kind of articles help me more to pursue my goals, I know everyone of us can be an investor someday, Mutual funds, direct stocks i found them interesting. I have here questions to ask.
1. Was there any case that a mutual fund experienced bankruptcy? and what happened to the investors money, did they money back?
2. I plan to have my first 1 billion in 2047, is it possible for me to get that wealth? if not, when can i get my 1st billion?im serious 🙂
3. Everytime i’m telling a story about stocks and investment to my sisters and they are in the middle of curiosity when my mother heard me she will interupt us sayin “oh! A Scam!” oh my goodness. How can i rid her thoughts about investment? i want to help them soon.
4. I was challenged by bo sanchez to make my millions soon. My question is whats’ the best thing to start up? A Business or an Investment?
This site is really a blessing to readers, its just like free seminar in my laptop by just accessing this site.
Kudos! admin 🙂
Hi, Cedric.
1. None that I’ve heard of. And even in America, did you know this impressive tidbit about mutual funds? Not a single one has gone bankrupt since 1940. No bankruptcy in 60 years in the U.S.! What about banks and other savings institutions? I think we’ve heard of rural and savings banks that shut down over the past decades. In America, Mutual Funds have gained popularity and right now they have over 10,000 mutual funds. What about in the Philippines? Well, a little over 50. Okay, 51 to be exact, huh?
2. That’s 20 years of investing. If you want to accumulate P1 Billion, you better invest P1,032,000 every month for the next 20 years in an investment vehicle that can give you at least 12% rate of return. Click the wealth calculator below this page if you want proof. I’m serious, too. Invest a minimum of P1 million every month for you to earn your 1st billion in 2047.
3. Sad but it’s really a common scenario in every family or even among friends. Don’t blame them, educate them so they’l understand what is legal from what is a scam. Suffice to say, financial literacy is really a must! There’s so much thing to do, especially for a country like us whose people remain financially illiterate. We need the help of everyone like you to share your learnings. I tell you, it wont be easy but it’ll be worth it!
4. Either way. You just have to assess what you have right now – your financial resources, your skills, talent, time. If you have the capital and the means, start a business. But if you’re in employment and has no time or means for a business, invest instead. Much better if you do both 🙂
Did I answer your questions clearly?
Yes admin! im happy that you replied. In my first question, its a healthy fact knowing that the industry of mutual funds have been strengthen for 60 years.
Second question, its my first million sorry for typo hehe..
third question, im always making a way to teach them about money hehe im the kind of person that whatever learning in my mind i want to share it with them like about savings, top companies and also insurance and investment.
the 4th one, im not yet sure admin about what i really want. but this, im pretty sure that i want to have this both. Investment and Business.
Thanks a lot. haha
sorry for the grammar (trying hard) haha
Well then, invest more or less P103,000 every month and do it in 20 years for you to earn your 1st million.
Yes, dont stop sharing and never give up on them!
Good! Do business and invest. Good luck, future millionaire!
Mutual fund is not that new to me. We’ve already discussed this topic in some of our major subjects. Since Ma’am Divine became our professor, saving and investing became a very serious and interesting matter to me. I got so inspired whenever she shared her thoughts and experiences about this.
As I go along reading this article, there is this urge that when I already have my own money, I’ll invest it quick and put it in a mutual fund, for I know that with a little amount that I invested, it’ll surely grow millions, and even billions in the near future. I bet most people refused to invest because they really don’t know what investing is, or maybe they are afraid to lose money, they do not tolerate risk that much. Investing takes patience, discipline, and effort. But one thing’s for sure, all these hardship of yours will be pay off in the end.
I just want to make things clear to me. What is that joint account that you’ve mentioned above? I think this is the only time that I hear it. I wanna know more about it. Kindly explain it more for me?
Thanks to this website, for they’ve shared this topic to everybody. I hope more people could read this and learn more about investments. Thank you and God bless! 😊
Thank you, Stefanie 🙂 You may open an individual account or a joint account ( joint”or”/”and”), or even a corporate/institution account, or an ITF (In Trust For) account in mutual fund. Joint account means you have a co-investor. Some mutual funds would even allow you to have 2 co-investors. A married couple may open a joint account. One would act as the primary investor and the other one is the co-investor. If you are a student, you may open an account with any of your parents or with your ate or kuya.
For ITF account, a parent may open a mutual fund with her child (below 18 years olf) under an ITF.
Caneth Aly Quinal fm 4-2 First Question : Sa classification po ng Mutual fund ano po ba yung advisable na Mutual fund para po sa nagsisimula palang po na mag-invest? Second Question : Masmaganda po ba na magkaroon ng Emergency fund before po mag-invest sa Mutual fund? Kung oo po magkano po ang advisable na amount? third Question : Annually po ba yung return sa Mutual fund o Monthly po? follow up Question lang po ilan percent po ba yung average return sa Mutual fund? Forth Question : Pano po kung gusto ko pong kumita ng masmalaki o masmataas sa average return ano po ang kailanga kong gawin? last Question : Ano po ba ang epekto ng inflation at Bear market sa investment sa Mutual fund at ano po ang advisable na gawin?
You have ample questions and I’ll try to answer them one by one.
1. You may choose from equity, balanced, bond fund, etc. but again, you need to assess yourself which fits you. For instance, for seniors or retirees, mas ok kung bond fund esp pag ang objective is steady income and short na lang ang time period but I have clients na kahit maedad na eh gusto pa rin equity. That’s their choice. Meron naman mga bata pa, in their 20’s. Normally I would advise them to invest in equity esp pag matagal pa ang investing period nila. They can tolerate fluctuations and wait for the market to go up. But again, depende sa risk tolerance nila. Some are not comfortable with equities so they choose bond or balanced fund. That is why it is important that you set a time with a financial planner or advisor para ma assess what fund is appropriate for you.
2. Definitely! Setting up an emergency fund is a must! Set aside 3-6 months of your monthly income as your emergency fund. Just in case may calamities, accidents, loss of job, at least you have enough liquidity to cover them. If you do not have an emergency fund, chances are you’ll be forced to pull-out your investment even when the market is down.
3. The NAVPS of mutual fund is computed daily. Pls check my article as to the historical average return of each fund. It’s there.
4. Invest more. Learn the strategies like buy more when the market is down, do money cost averaging, invest in stocks/equities that could give you a higher return. Learn the power of compounding interest. There are many ways. Just dont forget the risks involved.
5. Pag mataas ang inflation or presyo ng bilihin, people would have little propensity to save, and of course, invest. They would rather spend the money on basic necessities. Kapag bear market, don’t panic. See it as an opportunity for you to invest more shares at a bargain price. When the stock market goes up, that’s when you’ll get to earn more.
I find this article very helpful and knowledgeable. We are able to know what are the best investment for different types of people with different risk tolerance. If you want to have a peaceful and prosperous life in the near future, I think this is the right time for you to invest. Because for as low as P5,000 with minimal charge fee we can open a mutual fund account and in addition to that, there are Professional Fund Managers who will look after our investment. As of now, I’m not able to open a mutual fund account because of some financial issues, but I know that someday I might start investing to different types of investment vehicle that will surely help not only me but my family as well. Investment requires time, money, patience and willingness to learn more in order to be as successful as rich investors nowadays. This article serves as the best guideline for those interested people who would like to become a successful investor someday. I will surely share this learning to my family, friends and loveones to be able for them to know something about Investment, Business and Mutual Fund. I also want to change my spending habit and start saving now to train myself and to be more discipline in terms of using my money. FINANCIAL LITERACY AND FINANCIAL EDUCATION is the key to Financial Success that will boost our inner geniuses and will surely help us to combat Financial Ignorance. I’ve come to many realizations after reading this article, thank you for imparting your knowledge to all of us. Thank you Maam Divine for being our inspiration and motivation 🙂
SARAH MINA DANICA V. BOBIS
FM 4-2
You are most welcome, Sarah. Thank you for sharing your learnings 🙂 God bless!
This article is good for those people not yet known about investment , in fact many people have insufficient knowledge about investment, but because of this article, Investment is possible for us.Nowadays, many people knew being a wealthy individual is hard to achieve, because they have no enough financial knowledge about investing. They don’t know about mutual fund is but some people rely in pyramiding scam. kaya marame sa atin takot mag invest. For my question . How to know if a broker is eligible for investing in mutual fund? and , Paano po kumikita ang isang fund manager ? 🙂
Check its registration with SEC if it has the license. Fund managers are being paid a compensation. Usually, the more competent and good he is in managing the fund, the higher is his compensation.
Such a very useful and worth reading article. It gives me more knowledge about mutual fund and how it works. As a graduating student, I found it very important to know the flow of mutual fund so by the time i start working, i could invest to it without sacrificing my time to monitor the price on the stock market because the fund manager will manage it for you.
Thank you, Jerone 🙂
I find this article very helpful and knowledgeable. We are able to know what are the best investment for different types of people with different risk tolerance. If you want to have a peaceful and prosperous life in the near future, I think this is the right time for you to invest. Because for as low as P5,000 with minimal charge fee we can open a mutual fund account and in addition to that, there are Professional Fund Managers who will look after our investment. As of now, I’m not able to open a mutual fund account because of some financial issues, but I know that someday I might start investing to different types of investment vehicle that will surely help not only me but my family as well. Investment requires time, money, patience and willingness to learn more in order to be as successful as rich investors nowadays. This article serves as the best guideline for those interested people who would like to become a successful investor someday. I will surely share this learning to my family, friends and loveones to be able for them to know something about Investment, Business and Mutual Fund. I also want to change my spending habit and start saving now to train myself and to be more discipline in terms of using my money. FINANCIAL LITERACY AND FINANCIAL EDUCATION is the key to Financial Success that will boost our inner geniuses and will surely help us to combat Financial Ignorance. I’ve come to many realizations after reading this article, thank you for imparting your knowledge to all of us. Thank you Maam Divine for being our inspiration and motivation 🙂
SARAH MINA DANICA V. BOBIS
FM 4-2
Upon reading the article it helps me to understand well of all the question in my mind of What is Mutual Funds is all about?How can I Invest in the Mutual funds?What are the Benefit of Investing of Mutual Funds? Although it is always given all the information for as students in Financial Management that we always heard about it in the class. It’s still really confusing in my part because Honestly I’m not really familiar of these process of Investing.
As I read all the information it is encouraging young people like me learning to start Investing now.This article is very helpful for us as student in younger age to make up our mind to begin now building our own wealth that would benefit us in the future.These will benefit more people to share this knowledge about Building your Wealth in Investing.
Thank you, Ancyl 🙂
I find really interesting in this article and mostly in Mam Divine discussions and her sharing experiences and how she became a successful investor. Actually I’m planning to have a business in the near future and try to invest also, thanks for the knowledge and some tips so i could know how will i start and if my some decisions are right, and to share also with my friends and family, hoping that someday ill be the one who’ll share my experience and how become i successful too, lol who knows! I’m excited to know about more. Always be an inspiration to everyone. Thank you and Godbless.
You are most welcome, Joseph 🙂
Thank you Ma’am Divine for this wonderful learning. 🙂 🙂 🙂
Reading this article makes me realize that being employee is not enough to achieve my goals or to be wealthy.All of us want to create their own wealth. All of us want to be next millionaire. I learned for those wealthy people in our Investment Portfolio to transform my ordinary income into passive income as businessman like Henry Sy owner of SM Investment and SM Prime holdings, John Gokongwei owner of Universal Robina, and Jaime AugsutoZobel De Ayala owner of BPI, Globe, Ayala land and Ayala Corp. They become successful step by step. They not choose to work for money into ordinary income or being employee rather they choose to transform their money into passive income for being businessman that their money are work for them.
It takes a few months we will achieve our dreams, a graduation. But I realize being a graduate student, getting a bachelor degree will not guarantee my success. After we leave school it is the beginning of our journey that big challenges arrive. We will face a real world. We will start by nothing. Our first stepping stone is being employee. But one thing is our unfair advantage which is having a financial education. Thank you so much for our dearest professor Ma’am Divine for awaking us in our financial ignorance. Thank you for continue teaching us about financial literacy.All I want to do is doing a real thing by laying my knowledge and learning into real life.
This article helps me to be a wealthy even I’m not an entrepreneur. I will become wealthy and rich not only to transform my ordinary income into passive income but also transform my money into portfolio income which I earn by capital gains. As a beginners, I don’t have sufficient knowledge about stocks and not able to monitor my investment from time to time. I feel great because our professor helps us how to be successful investor. I learned that for the beginners like me is the better way to invest is putting my money into mutual fund. This investment is less risky than direct stocks. Mutual fund is an investment company who is responsible to invest your money or buy stock around different companies.After a while if we can maximize our risk tolerance we are able to invest in direct stocks.Like a successful wealthy people I don’t want to work for money rather I want my money work for me through investment in stocks and mutual funds. I learn how to transform my income into portfolio and passive income so that I able to transform myself from poor to middle class to rich.
Thank you Ma’am Divine for acquiring learning. More power for your Financial Literacy Advocacy and God bless.
SanriaSeda
Financial Management student,
You are most welcome, Sanria. Thanks for sharing your learnings 🙂
After I have read this article about building wealth through mutual fund, I become more excited to start to build my wealth. Before I thought, I have to be Engineer, Lawyer, Doctor, Architect, Politician and even a boxer like Pacman, to be a wealthy person. Before I see myself in the future like an oldman waiting for my very little amount of pension to sustain my daily needs. But I have so many dreams in life, I want to travel different countries. I want to drive my own car. I want to live in my own beautiful house with my own family and sustain there needs and also their wants. But what can I do?
After seminars attended, lessons in school, and after I have read this article, I learned that I can be wealthy someday by investing in Mutual Fund, it is very “Investor-friendly” because of its features that make investors stress-free. It is also better for me because I have lots of extra curricular activities in life, so I can’t make to invest in Direct Stocks because of lack of time to monitor my stocks. It is also safer because there is a Licensed Fund Manager that will take care of my fund. And they are regulated by the Securities an Exchange Commission, to protect its investors.
But before I start investing, I need to be a good saver first. I need to discipline myself and have to live a simple lifestyle. I believe that someday, I will be a billionaire like them.
Yes, Rowie you dont need to become like Pacman to become wealthy hehe. You may start small by growing your savings and investments. You are right, we need discipline and a simple lifestyle. God bless you, future billionaire!
I feel blessed because I have the chance to read this article. I have learned more about Mutual funds. I have learned that mutual funds is one of the safest way in investing especially when you are a beginner because if you dont have enough knowledge, time and skills about investing it can help you a lot because in mutual funds you let them manage your money. You are also being a part owner of a business if you invest in mutual funds. I also learned about the classifications of mutual funds like stock fund, balanced fund, bond fund, money market fund and index fund. It is suitable for those who are not risk takers. it is also suitable for those who wants to start investing in a small amount because in 5,000 you can invest in mutual fund with a minimum of 1,000 pesos additional investment and it is not mandatory, it is base on your own budget. So eventhough I am still a student I am looking forward to invest in this kind of investment vehicle. Thank you to this article I’ve learned a lot. I hope that many people can read this so they also become bless like me. God bless this group and keep it up! 🙂
You are most welcome, Angelica 🙂
As a graduating financial management student, I alreadyhave basic knowledge about mutual fund because it was the nature of our business in our feasibility study and reading this prior to that would have been a big help to us. But after I read this article, It gave me a broader idea of what mutual fund really is, how it works, and how much earnings we could get from a mutual fund once we start investing. This re-opened my mind to enter the investment world, and in such a convenient way for a starter like me. Hoping that as soon as I start to earn from my first job, I can be one of the investors.
Imagine, you will just leave your money in a mutual fund of your preferred type and the fundmanager is the one will manage everything of your investment. Investing in a mutual fund is stress free and not time consuming to study, even after your work. But of course Investment in a mutual fund does’nt necessary mean that there are no risks involve, it just happened that the risks in this fund are minimal because it is diversified and manage by a professional fund manager,
the risks in a Conservative and Bond fund is tolerable because it is partly invested in a fixed income securities that has a fixed payment received depending on the agreement. While the Equity fund is much riskier because it is invested in stock where its price in the stock market is affected by the demand and supply, where your investment could gain or lose. That is why knowledge about financial education is important before investing. Know your risk tolerance first before you invest.
I have 1 question that plays on my mind:
If I will invest in a mutual fund and this fund invests particularly in Jollibee, Do I have a voting rights in the management of jollibee? Or voting right is for direct stocks investors only?
Hi, Kate! Thanks for sharing your learnings.
What you have s a voting right in the mutual fund company, and not in Jollibee in particular. That right is available to direct stock investors only.
Ever since I learned about investments, I really started to enjoy reading articles and books regarding investments and managing personal finances. This article has been very helpful to those who wants to start their investments but has no idea how to. Whenever I read articles like this, my mind starts to create scenarios where I will be the one actually investing. It’s been my goal to start investing as early as possible in mutual funds at first, then investing someday in direct stocks, I know this requires sufficient knowledge in stock market, and this challenge me more to know more about stock market. Investments can be very helpful to many Filipinos if only financial literacy would be made more available to ore Filipinos. I just want to ask if I want to invest in stocks in a mutual fund, can I choose between preferred stock and a common stock? Can I choose which company stocks I want to invest, or the mutual fund will be the one who’ll choose for me. How will I know which company did the mutual invest my money? Thank you and God bless. 🙂
Hi, Christelle. Nice write-up!
All shares of stocks of mutual funds are common, no preferred. We cannot also choose the companies. We leave that to the discretion of the fund manager.
Mutual Funds provide updates on their websites and also on their Fact Sheets which is normally sent quarterly through email or mails, and distributed during stockholders’ meeting. Fact Sheets contain vital information as to the holding companies or the list of companies where the fund is invested. It also includes the percentage of investment in each company and industry, and the performance of the fund, among others.
Thank you for this wonderful article! I already learned these concept in school but i still love reading your article. I hope more filipinos will find this site, para marealize nila na hindi nakakatakot mag-invest sa mutual fund or even sa stock market. Makakaasa po kayo na I’ll share your website to my friends and relatives.
I have few questions to ask.
1.how did you manage to start and have a mutual fund account?
2.What if we sell our mutual fund para iinvest sa other paper assets, may tax pa ba kaming babayaran?
Hi, Sweetsell 🙂 For your 1st question: I started investing in mutual funds after reading books and attending seminars. I research on the internet for added learnings. It was hard though because at that time I had no mentors to guide me. It was the learnings that give me the confidence to invest. Like any new investors, at the time I had doubts if what I was doing is right. but as I continue learning and investing, the doubts were converted into excitement and enthusiasm. Especially when I started attending stockholders’ meeting. I met a lot of wealthy, prominent and credible people not only in the field of finance who are investing in stocks. I began to create connections, particularly when I involved myself in a brokerage firm where I met my mentors and newfound friends And it makes me proud to be part of the limited few who are in this area. But how I wish that more people will get to know this and I guess, that’s where this advocacy all started. It was the changes within that prompted me to change other people’s life, too.
Good news, and this is also one of the reasons why we love mutual funds, it’s because the capital gains of our mutual fund investments are non-taxable 🙂
It is good to know that there is an article like this to inform the ordinary people about investing in mutual funds. I learned in this article that money works for you and I can be wealthy not just by having business but also having an investment. Investing in mutual funds is really good because it has a lot of advantages. One of the advantages of investing in mutual funds is stress-free investing. Even if I don’t have the time to manage my investments and I don’t have enough knowledge about investing there is a fund manager that can manage my investment. But I have a question, it is mention in the article above that I can invest in mutual fund for only P5,000, is it possible that I can divide my P5,000 into different classification of mutual funds or I need to choose only one classification? Thank you for answering my question. I’m really lucky to read this article and get information from it. It’s really worth sharing to others and be informed about investing in mutual funds. Thank you!
Hi, Angela 🙂 You may choose more than one type of mutual funds. The opening amount may vary depending on the type of fund. Some equity fund starts at P5,000 and there are also balanced fund and bond funds that start at P5,000. But there are funds that start at P100,000, or P20,000.
If the minimum requirement is P5,000 for each account then you cannot possibly divide that into different funds. It’s either you invest in just one fund or you need to increase your investable fund to be able to invest in other funds as well.
My learning about this article, I was amazed and inspired because it tackles the types of investments and their differences. First, I learned the Diversification of investments which is to diversify your investments to many companies to secure the other investment. Because if you invest it into one company, it has a tendency of losses if that company is bankrupt. Like the article said that ” Don’t put all your eggs in one basket. Other wise, you are exposing your investments to greater risk “. So the use of diversification strategy is very essential to the investor specially to beginners. And I knew that all the beginners that wants to invest, its better to invest in Mutual fund. Because in other types of investment, it’s a lot of study to do because if you invest like in stocks and you don’t have a sufficient knowledge about stocks? Your investments possibly loss if you do not monitor it. And as a beginners, if they invest, I’m sure that they cannot monitor their investments because they focus on their job. So I learned that, for the beginners, Mutual fund is better to put your money because you don’t have to monitor it and there’s a Fund managers that will help you if when and where they allocate your money. So it’s crucial to understand this article especially to those people who wants to invest and to be a wealthy person.
It seems you’ve learned a lot from the article, Marco. I’m glad that you’re able to get pieces of information here. God bless!
Education is the most powerful weapon one can ever have. In a country like Philippines where financial planning is really difficult to be bear in the minds of the people, a financial literacy advocacy like this page is really necessary.
Investment is really an interesting activity because you can see that your money is growing even without working for it. Mutual Fund, which is one of the safest type of investment is really advisable to many Filipinos especially if they weren’t aware on how the prices of company shares in the stock market fluctuates.
While I’m reading the article, I had these few questions in my mind:
1. Were there any law governing the processes and businesses of mutual funds? How does the government protect the mutual fund investors if the mutual fund company suddenly got closed?
2. What are the reasons why mutual funds do not offer preferred stocks? What if the major goal of the investor is to earn income and does not want to intervene with the management in the mutual fund?
3. Do Mutual Funds also have treasury shares? If they do and they resell these treasury shares to the market, will the price differ from those of the shares to be sold for the first time?
4. Is it possible for the investors to know the companies where the fund managers put their money? Do mutual funds give information regarding the percentage of what they put on those companies?
5. When it comes to redemption, what price of NAVpS will be followed? the price when you filed the redemption or the price when the redemption will be done?
Thank you for sharing your insights, Fretzy. You have quite a number of good questions here hehe.
1. Yes, I think it was mentioned here the law that governs mutual funds in the Philippines, and that is the Investment Company Act of 1960. The protection clause is contained in the law. It’s the SEC that governs all mutual funds and it ensures that investors are properly protected.
2. For one, preferred stocks have no voting right and the purpose of owning them is to earn fixed dividends. Common stockholders have the right to vote and intervene with the management of the company. They also earn through capital appreciation. The power and voice that an investor has would depend on the number of shares that he owns. If he doesn’t want to intervene, he may do so at his discretion. He may simply decide not to vote or skip stockholders’s meeting.
3. Yes, under money market funds or bond fund. It’s not the mutual fund that issues treasury stock but the government. Are you referring to IPO price? then that’s for publicly companies issuing shares of stocks. There’s really no point of comparisons as to price bec treasury shares are not traded unlike stocks. They have no price but interest rate.
To deepen your understanding, in stocks, you lend money to publicly-listed companies and that makes you a part owner of those companies whereas in treasury, you are lending your money to the govt but that doesnt make you a co-owner of the govt. Stocks fluctuate significantly due to demand and supply. While treasury is on interest rate and other factors, and at the discretion of the govt.
4. The answer is a big yes. If you are a mutual fund investor, you’ll know where the company invests you money and the percentage of investments, usually the top 10-20 holding firms. They normally publish that and distribute through their Fact Sheets.
5. The NAVPS at the time the redemption filing will be the basis of computation if it falls within the cut-off time. For instance, you submitted a redemption form today beyond the cut-off time at 12 nn, then the NAVPS on the next working day will be used as the basis.
I hope I have answered you questions clearly.
This really a must read for us as a student, even for those people who has insufficient knowledge about how investment works.
This actually encouraged me to do saving for me to start to invest early after I graduate. Even recommending to my friends and relatives the benefits of investing, especially the Mutual Funds.
But before anything else, I must readied myself on different questions they could ask. Even myself is wondering more about Mutual Funds:
*Since there is a Fund Manager who can professionally manage my investments, is there any possible way I can monitor mine? How can I ensure that it is profitable?
*Is investments redeemable even if I gave terms in accordance of my financial goals?
*How about insurances? Meron po ba? Like life insurance, health insurance, and such?
*Another thing, are the gains taxable mam?
*Lastly, transferable po ba ang investment sa Mutual Funds or in any other type even in Direck Stocks? How about po sa Joint Account? Pwede rin po ba? I’m planning din po kase na mag-separate ng investments for my parents via joint account, just wondering if applicable po.
So, that’s it. Thank ypu so much for additional learnings about Mutual Funds Mam. More power!
Hi, Evangeline.
* Yes, you can monitor your investment even on a daily basis. NAVPS is being published every day in websites and selected publication so you’ll have an idea if the value of your investment is gaining or not.
* As mentioned in the article, mfs are redeemable any time. It’s your discretion when to redeem. It’s also your discretion what type of fund to choose. So that would somehow complement your financial goals and your terms.
* Insurance and Healthcare products are different from investments. I’ll probably tackle that in my next articles.
* The good thing is, mutual funds are non-taxable. You get all the profits tax free!
* It’s not. If you want to change you co-investor, i would be advisable to redeem in full and open a new account with your new co-investor. If it’s a joint account and the co-investor dies, a and also for individual account of a deceased investor, the redemption proceeds shall be subject to our applicable Philippine laws.
thanks mam divine for sharing this article to us. This can help us to brighten our future on we invest. When i entered this college life, honestly, I don;t know how to save money from other institutions except from banks. I also learned that, it can gain more interest rather than banks. Sana po mam, lahat din po ng mga pilipino, makabasa po nitong article na ito. Madami po sating mga Pinoy ang natatakot mag invest kase marahil isipin nila na ito ay isang scam lang.. Ngunit mam, makaka asa ka po na maging mga kaibigan ko po at kakilala ay ipapabasa ko po sa kanila ito. Maraming salamat po mam. At dagdag pa po mam, nalaman ko din po na mas maganda po pala talaga angf mag invest sa mutual funds po.. Kumikita kana, Safe pa ang pera mo 🙂
Hi, Christopher 🙂 I also hope that more people will get to read this. Thank you for sharing your learnings. You may also share the link on facebook. Thank you for the big help. Let’s educate more Fillipinos!
I want to acknowledge Mrs,. Divine Cabaddu about the article she wrote.. Its a good thing that someone wants to spread the financial awareness to individual. Of course this will be more successful if our government will also help them to educate the FIlipino citizen. We cannot denied that filipinos are lack of finanacial education. Thats why many of us suffered from too much debt.
Many of us thought that after our college graduation we need to find a stable job in order to help our family..Actually i also have that kind of thinking before.”After graduation i need to work for my family” But it was changed when we tackled about
mutual fund and investment. we work harder to increase our income.but as income increase inflation also increases. So the purchasing power of our money decreases. Saving in bank is good but the interest that you’ll earned after using your money is not enough. Actually your money is just earning. 25 percent annually.. But when you invest it on mutual fund it will gain 10-12 percent conservatively.
Let your money works for you rather you are working for money
It’s a great opportunity for us as a young individual to know about investment. Time is your allied, so knowing and getting knowledge is very important for all young individuals. Thanks to this article because I’ve learned a lot specially about mutual fund, although mutual fund is familiar for me, this article give me additional knowledge about it.
As a financial students, we all know the harmful effect of inflation. It decreases the value of our money. So the best thing to do is to invest. Through this, we can beat the harmful effect of inflation. This article telling us about mutual fund and its classification in order for us to make a choice what and where we want to invest. It depends on the goals that an individual has. For those individual who has a high risk tolerance and want to have a greater return, equity fund is fit for them but for those individuals does not want to take a higher risk and only want a safe investment, bond fund is a good choice.
So what we’re waiting for? Invest and beat the inflation! Invest and achieved your dreams!. Be the first millionaire of your generation!.
You are most welcome, Juliet. Thank you for sharing your insights. While a lot of people, especially young people, are left with not much of an option but to get employed as soon as graduating from college, still, I hope that while working they will seriously consider investing.
May tanong po ako, “Paano mo mapapanilawa ang isang pulubi na kaya nya pang umahon sa hirap ng buhay?
Naniniwala ako sa kapangyarihan ng edukasyon. Minds are nurtured and molded through education. Your beliefs, your values, your character – these are shaped and influenced not only by the family but also largely by the teachings in school. Suffice to say, yan din marahil ang dahilan bakit sa kabila ng hirap ng ating mga magulang ay iginagapang nila tayo sa pag aaral. Dahil naniniwala sila sa edukasyon at naniniwala sila na and edukasyon ang mag aahon sa atin sa hirap ng buhay.
I think you have heard stories of poor students who were able to top board exams or rose from poverty. How did they do it? They educate themselves. Education is not limited to the four corners of the classroom because there those who have no formal schooling, and yet they succeed in life. But do you think they become successful without learning how to hone their skills or without learning how to manage a business, or talk to people? The truth of the matter is, they educate themselves. They’ve learned how to capitalize on their strengths. We’ve heard stories of successful businessmen, wealthiest people on earth… I dont think any one of them would say that educating themselves has nothing to do with their success. Turuan mo ang isang pulubi. Bigyan mo sya ng pagkakataong matuto. At sa palagay ko, yun ang magiging sandata nya para umahon sa buhay.
Actually at first, I really dont like hearing or even attending this type of seminars. because I get bored and i think it is because I dont have enough knowledge about investment. And honestly to say, I am not totally interested about it BEFORE. but when I hear discussion from our professor about investment, there, from that point i started to like or my attention was caught about investment. and now that I read this article, the questions in my mind is now answered through this. and I promise to myself that I will invest when I am working. as what my professor said, its better to invest when youre still young, because you have a lot of time to consume for investment. and this article makes me realize about the importance of investment for my future. as a Finance STudent, practically saying ,I will think about the return or the profit that i will gain. and also this article helped me to know the terms that I actually do not know.
through this article, i will use the knowledge/information I gain to share this to my family. for them to be knowledgeable and learn that investment is really important and it will change our family’s future. I will encourage them to do this because its really a life changing action. Thank you so much for giving us opportunity to read this article. This will really help people to be a better person and have a better future someday. Thank you so much ! I wish this article will be share to other people who dont know what is the meaning of investment.
Reading an article about mutual fund like this excites me more to invest. But upon reading this this, I also realized that my knowledge about investment is not wide as I need to start my investment aside from having enough money, but having a site like this and persons who influenced me more to invest is really a good thing.
I was so amazed on how investment work. Never in my life I imagined that money can also works for you because all I know is if you want to be rich, you just have to work and work and if you could, have your own business, but it was really a risky decision because as we know that business is also a risky investment. But when investment instrument introduced to me, I already started to believe that I can be not just rich but a wealthy one. Although I really want to have my own business but before that, I will going to put up my good investment portfolio first the i can now have my own. Because I know that these secret of successful businessmen can also make me successful as them.
When I was a kid I kept on thinking that I should find a good job after I finish my studies. To become one of those millionaires and to be a successfully person, I have to work hard. But now that I have read this article it is possible for me now to become one of them. And I know I shouldddiscipline first myself from spending too much. Work on how to get rid of my spending habits. I know this is a long process and I hope I can do it.
My questions are:
* Is it okay to get an insurance and to engage in investment at the same time? Or kelangan po munang insurance saka healthcare before mag invest?
* Bakit Hindi pwedend mag invest more than 10% in a single company?
*Gusto ko po iopen sa family ko hung about sa invest but hindi ko po alam kung pano sila maiencourage, what should I do po?
this article is really helpful, I will surely recommend this to my relatives and friends who have vague knowledge about investing and saving. upon reading this article it made me realize lots of things that will surely benefit me in the near future, I really hope that your site reach all the Filipinos whose lacking out of knowledge in planning for their retirement and even for those who plans to settle. i love how the article has been made by the author because It tackles all the areas of investing actually it answers all my queries. hope to really read more from your site. I am looking forward to see financial literacy advocacy group one of the top financial literacy sites that can be search on the web, More power and more people to be bless in your article. May the good Lord continue to bless your advocacy in spreading out financial freedom.
As I read this article I found it really interesting and helpful. Before I do not have any idea what investment is and how does it work not until I have a professor who teach and give us knowledge about investment. But now, bit by bit, I learn and appreciate the importance of investment. Knowing this makes me more aware and responsible for my future. It helps me to choose what investment should I pick and where to invest my money. And I hope I will achieve all my goals in life with the help of investment. I also hope that this article can be an eye-opener for those people who doesn’t have any idea about investment. But I have a question “how does brokerage firm earn income if they do not have sales load from their mutual fund?”
More power and blessings to your group for spreading financial literacy.
Hi good evening!
kahit ilang ulit ko ng nababasa about mutual fund feeling ko hindi parin enough yung knowledge ko about it. About how mutual fund work ang tanging pumapasok lang sa isip ko dapat makapag invest ako hindi lang sa mutual fund pati direct stock . I learn a lot form my professor and gusto magbunga yung mga tinuro nya samin and ibahagi ang mga learnings ko about it. and soon ill be part of the F.L.A.G and i want to inspire yung mga barkada ko at specially my family na lumayo sa utang at masyadong gastos and now mag aaral pa ako about investment kung paano makipaglaro sa stock and gusto kung matest ang risk tolerance ko about sa pag iinvest.
my question is if I have a business good strartegy po ba na yung profit ng business ko sa halip na isave ko sa bank advisable po ba na invest ko nalang to sa mutual fund or direct stocks?
Thank you!
Many Filipinos wants to gain financial freedom. But is having savings enough? Today, Filipinos are already aware about investments and some of them are starting to learn to invest.
All I can say that this article/blog was really interesting and feeling pleasured at the same time! Coz, you’ll get more lessons and learnings from it.
I, as a currently graduating student taking up financial mgt and soon to be an employee! As this my field, I believe that this will help me someday to on how I will manage my income through investments. Also it will help me to decide my financial goals towards financial freedom and getting a better wealth and life in the future. But i know to accomplish or achieve this financial freedom, it is important to know my priorities in life and to have a financial planning because if I won’t do that in the first place there a possibility that I would fail and not to success. Also, I learned that in investing it is not an easy to do so. It’s a full time effort that requires time, discipline, save money and the more important is financial education about it. That’s why if I am not careful someday, I can lose all my hard-earn money in just ONE click and I do not want that to happen.
Since I already started saving money and still educating myself about investments and proper allocation someday I will invest when the time is right. And the time is when I already have a job and an earner 🙂 “Patience is a virtue.”
Lastly, I have a chance to share this blog to my friends especially to my family and relatives who do not really know about investments and the importance of being wealth in the future. So, to end this, I would like to thank and congratulate to the author and the members of this blog who never stop sharing her/their knowledge, passion and experiences to many people especially to us students about investments. I feel blessed that I read this and I am excited to do this later! Thank you so much! I LEARNED a lot po! More learnings to come! Keep it up! Godbless po 🙂
This article was so very amazing and powerful! I thought I’ve already unlocked the formula for financial success through reading the entire topics in view of mutual fund. I have found it really interesting and helpful. Some of my lessons are:
1. Start investing early.
2. Start investing regularly.
3. Because compounding has tremendous effect. 🙂
As a student, it boost me to dream bigger and even more. It gave me motivation, encouragement and upheaved me to pursue my passion to be a good speaker someday because I really love to share my learning to other people and help them escape from poverty.
As I have finished reading, these are some of the things I have noted and use as a ROAD TO FINANCIAL SUCCESS!
✔Build a savings habit
✔Protect my goals
✔Invest pa more!
Happy reading everyone!
See you at the top!
P.S. I really enjoy using the wealth calculator.
Thank you for that great sharing, Elbert! You have captured the core concepts in this article. I pray for your financial success!
I’m glad you enjoyed using the wealth calculator. It definitely served its purpose hehe. God bless!
I found so much knowledge about this! It would really help us to make a decision to save and invest for the future. If we are just willing to learn, we can achieve something better for our personal finances.
Learn, learn and learn. Never stop learning. Even if I already read this article, I feel that it’s not enough. So, I realize as a current financial student, i will use and take this opportunity to achieve my dreams in life. Time is important. I should that dream is just dream without execution. Save and invest early.
Thank you for this!! Waiting for another knowledge we’ve learned.
God bless!!!
Good Day to the owner of this site! Thank you for sharing thoughts about mutual funds. Im much more interested in investing mutual funds and this article really helped me to understand thoroughly what really mutual fund is. First, I thought mutual fund is just mutual fund. After reading your article I found out that it has classifications. Through that I can finally choose where to invest my money. It gives me sufficient knowledge and i’ll work on it to be part someday of the investors in a mutual fund. Thank you for your article! It really help me. I’ll share my learnings from your articles to my relatives and friends. God bless!
after reading this article I was amazed about investing at the young age, Its good to have a plan for my future..My concern are
* As a student is it ok to invest P500 every month?
* Kanino po ako lalapit to start investing?
* Annually po ba ang return in Mutual fund or Monthly?
Salamat po.
Hi, Ms Sheena. Sorry for the late reply. Rest assured that we are now actively going digital!
Btw, here’s the answer to your questions:
*The initial investment of mutual fund is P1,000. You may add up for a minimum of P500. So far we have at least mutual funds that requires and an initial investment of P1,000 which is really affordable and a good starting investment for students.
* You may message me at 0933.863.7865. I recommend that you attend the basic financial seminar first so you’ll have an idea how to start. Send us your city or province so we could refer you to our offices, or we can just let you watch our webinars at a time convenient to you.
* Mutual funds’ net asset value per share (NAVPS) is computed daily (available on numerous websites like http://www.pifa.com.ph or see our mutual fund icon below this page) so you will have an idea on the earnings of your money.
I hope this answers your inquiry. Thank you also and hope to hear from you soon.
Thank you for sharing superb informations. Your website is very cool. I am impressed by the details that you?¦ve on this web site. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my pal, ROCK! I found simply the information I already searched all over the place and just couldn’t come across. What a great web-site.
Hi, Ethan!
My gratitude knows no bound. Thank you for appreciating our simple work. It inspires us to keep going!
We’re a group of volunteers and opening a new scheme in our community. Your site provided us with valuable information to work on. You have done a formidable job and our whole community will be grateful to you.
Hi, Louise! You are most welcome! Know that volunteer groups are close to our hearts.
https://waterfallmagazine.com
Wow, fantastic blog layout! How long have you been blogging for?
you made blogging look easy. The overall look of your website is magnificent, let alone the content!
Hello there!
Been blogging for 3 years now. Thank you! Your feedback means a lot!