Investing through Mutual Funds

Ano ba itong mutual funds at paano mag-invest dito? I will share with you one of the investment vehicle na kung saan pwede mo iinvest ang iyong pera to make it grow at ito ang mutual fund. Kung gusto mo maginvest sa stock market pero wala ka time to study at pagaralan maginvest directly sa stock market, don't worry you can still invest sa stock market through Mutual Fund.

What is a Mutual Fund?

Mutual Fund ay yung pinagsamasama na pera from the different investor like us and invest in the different types of mutual funds such as bonds, equity or stock market, balanced funds & money market funds. The money you invest in the mutual funds is managed by a professional fund manager. You entrust your money to the fund manager to keep it safe & make it grow.

Types of Mutual Funds 

Here are some types of mutual funds to give you an idea, but there are other types not mentioned because it depends on the mutual fund company.

•  Equity or Stock Funds

These funds invest primarily in the shares of publicly-listed corporations. The fund objective is capital appreciation or long-term capital growth. Ito ay isang type of mutual funds kung saan makakapaginvest ka sa stock market at yung pera na iinvest mo dito ay pangmatagalan, kaya yun ilalagay mo na pera dito ay yun pera na hinde mo gagamitin 5 years or more from now.

•  Bond Funds

Bond funds invest primarily in fixed-income securities issued by the government or large corporations. Examples of fixed-income securities include bonds, Treasury bills, and Treasury notes. The objective of the fund is to provide current income that is consistent with preservation of capital and liquidity. Ang pera na iinvest mo dito ay ipapautang sa gobyerno o kumpanya kung saan tutubo ito ng fixed interest for a defined period of time.  

• Balanced Funds

Balanced funds invest in a mixture of equities and fixed-income securities. The goal is to provide total return consisting of a high level of income that is consistent with preservation of capital, liquidity and long-term capital appreciation. Yung pera na iinvest mo dito ay ilalagay ng fund manager sa iba-ibang type katulad ng equity funds, bond funds at money market funds hinde lang sa iisang types of fund. 

•  Money Market Funds

Among the four types of mutual funds in the country, money market funds provide the least amount of risk. Its goal is to provide current income by investing in short-term securities with portfolio duration of one year or less. These may include short-term government securities, special deposit arrangements, and time deposits, among others. Kung ayaw mo ng matagal na paghihintay at kelangan mo yun pera makuha kagad, ito ang pwede sayo pero mas maliit ang kita mo dito compare sa ibang types of fund.

How you will earn in Mutual Funds?

You will earn money through price appreciation in value of the assets owned by the fund, the dividends and interest it receives from the securities held. These incomes are then passed on to the investor less fees and fund expenses. Investing in a mutual fund, you are buying shares of the particular types of fund based on its NAVPS or Net Asset Value per Share. Kikita kapag tumaas ang NAPVS and you will loss kapag bumaba ang NAPVS but you will only lose if you sell it when the price of NAVPS depreciates.

How much is the required minimum initial investments?

You can start investing in a Mutual Fund with a minimum initial investment of Php 5,000.00.

What are the different Mutual Fund Company?

There are many mutual fund companies in the Philippines that offer the different types of mutual funds. To know more about the company and their performance visit the website of Philippine Investment Funds Association www.pifa.com.ph. In terms of regulation, mutual funds are governed by Republic Act No. 2629 (RA 2629), also known as the "Investment Company Act" and are regulated by the Securities and Exchange Commission (SEC). 


As a summary, investing in a mutual funds is like riding in a passenger jeep, kung saan pupunta ka sa terminal (mutual fund company) na meron iba ibang ruta (types of mutual funds) at sasakay ka papunta sa destinasyon na gusto mo either malapit lang na biyahe o malayong biyahe ito. Makakasama mo sa loob ng jeep ang katulad mo ang pupuntahan (investor) at dadalahin kayo ng driver (fund manager) sa inyong destinasyon. At katulad din ng passenger jeep kelangan mo magbayad sa driver (fund manager).

A Disclaimer: I'm not a professional financial adviser, I'm just sharing what I learned. To know more about Mutual Fund you can ask or seek a professional financial adviser to further discuss with you regarding the topic.

So hope you learn something about Mutual Fund here in my blog, thanks for reading and God bless to you. See you in my next post.. 

Read Also:

Why we should Invest?
How Inflation Affects Us?
Investing in the Philippine Stock Market
Question & Answer About Stock Market
How to Start Saving?
Money Saving Tips

P.S.1 Subscribe to my blog to receive my latest post directly to your email Inbox it's free>>Subscribe to My Personal thoughts About Life ..

P.S.2 Do you want to gain Financial wealth & Spiritual abundance at the same time? Join us at the Truly Rich Club now! founded by Bo. Sanchez, its purpose is to "help good people become rich". Because of the guidance I get from the Club, I’m now investing in the Stock Market! I’m inviting you to join the Club too. If you’re interested, click the link here → Truly Rich Club.

Inspiring Article from Bo.Sanchez (You Have A Choice: Drink Now Or Drink Forever)

Hi! Have a blessed day to you my friend, today another great article I've read from Bo.Sanchez that I want to share with you. The article is about investing, the money you have today even a small amount if you put in a money pump can produce more money for you. But you have a choice you can spend the money you have today or invest it to let it grow so that it will produce more money for you. The choice depends on you as I always said "You are the master of your own money". To know further about it continue to read the article, an excerpt from Bo.Sanchez blog How To Be A Billionaire.  

One day, a man got lost walking in the desert.

       The next day, he was still lost.

After two days under the scorching sun, he was very thirsty. 

       All of a sudden, he saw a little wooden shed.

       He ran to it, thinking of only one thing—Water!

       When he arrived there, he saw an old, rusty water pump sticking from the ground. He gripped the handle and began pumping like a mad man. 

But nothing came out.

       Disappointed, he stepped back how to make it work.

       Looking around, he saw a jug covered with dust.

       When he grabbed it, he saw a piece of paper stuck on it. The message read, “Open this jug and you’ll find water. Don’t drink it. Pour it instead on the pump. And you’ll have all the water you want.”

       He popped the cork. 

True enough, the jug was filled with water. Lovely, thirst-quenching, water.

       Now imagine you’re that thirsty man. 

For two whole days, you haven’t drunk water. Your mouth is so dry, your tongue is sticking to the roof of your mouth. You’re literally dying of thirst. And you’re now holding a jug full of water. But the message says that you should throw it away!

       For a moment, your heart is torn. 

What if the message was a joke? A cruel prank? What if you poured the water on that rusty pump and nothing happened?

       But the man in our story chose to take the risk.

He closed his eyes, took a deep breath, and poured the water.

He held the handle and pumped like crazy.

A few seconds later, torrents of water gushed out. Indeed, he had more water than he could ever need!

He drank to his heart content. He also found water containers to bring with him in his journey and filled them up to the brim.

But before leaving the place, he filled the jug with water.

And underneath the sign attached to it, he scribbled, “I tried it. Believe me, it works.”

You Have A Choice:

Drink Now Or Drink Forever

This is a great picture of why people are poor.

The money that you hold now, no matter how small, is like that jug of water. And you always have a choice: You can drink now or you can drink forever. You can have money now or have money forever. 

How? By investing.

A lot of people don’t invest. 

They spend whatever they have.

I’ve met people who earn P10T a month or 50T a month or P500T a month—and they spend everything.  (Yes, I’ve met a lot of high-income poor people!) That’s why their money pump remains dry. And they’ll remain poor forever. It really doesn’t matter how much people earn. What matters is how much they invest.

Investment is a crazy decision.

It’s as crazy as pouring that last jug of water into the pump.

Friend, you have money now.

It may be small but you have it.

       And you’re standing in front of a money pump.

       Actually, three money pumps:

• Business: Traditional, Franchise, Networking, etc.
• Property: Rental Property, Buy and Sell, etc.
• Paper: Bonds, Mutual Funds, Stock Market, etc. 

But today, I’d like to focus on the “Paper” money pump. 

Not everyone can start a business right away.

Not everyone can buy a property right away.

But almost everyone can invest in Paper Assets.

Friend, you have a choice.

       Will you simply consume your little money?

       Or will you pour it into the money pump—so that it produces more money for you?

I call this sowing in time of famine.

Don’t Wait For Better Times

Before You Invest

       In the Bible, Isaac sowed in time of famine. 

Crazy, right?

Shouldn’t you keep whatever seeds you have to eat?

But because he did that, the Bible says, that year he harvested a hundred times as much as he had sown, because the Lord blessed him. He continued to prosper and became a very rich man.

Wow.

If you want to be rich, you need to sow in time of famine too.

When you have very little money, that’s the time to invest.

       Here’s a promise: The seeds that you sow in time of famine will give you your greatest harvest too.

       Do you want to prosper?

Here’s a Bible passage that will tell you how.

Proverbs 21:20 says, "The wise man saves for the future but the foolish man spends whatever he gets".

So that's it, in our life we have always a choice same as in investing, it doesn't matter the amount of money you have today because this small amount money still have a potential to create more money for you. But you have a choice whether to invest it or spend it. 

I Hope you are inspired & motivated in this great article by Bo.Sanchez, to read the whole article click here.. 

Thank you for visiting my blog and see you in my next post.May god bless you!

Also Read

Plant In The Spring Or Beg In The Fall

Do You Want Success? Stop The Blame!

Truly Rich Club & the Stock Market

Where I Should Put my Investment?
Why We Should Invest?

P.S.1 Subscribe to my blog to receive my latest post directly to your email Inbox it's free>>Subscribe to My Personal thoughts About Life ..

P.S.2 Do you want to gain Financial wealth & Spiritual abundance at the same time? Join us at the Truly Rich Club now! founded by Bo. Sanchez, its purpose is to "help good people become rich". Because of the guidance I get from the Club, I’m now investing in the Stock Market! I’m inviting you to join the Club too. If you’re interested, click the link here → Truly Rich Club.