“Gusto kong Maginvest sa Stock Market pero hindi ko alam kung paano?”
“Wala akong time to monitor eh”
“Gusto kong kumita yung pera ko ng mas malaki ang kita kumpara sa bangko kaso ‘di ko alam kung saan”
Kapareho kaba ng mga hinaing ng mga ito? :)
Wag ka magalala dahil sa Blog na’to ay sosolusyunan natin ang mga yan ng sabay-sabay at Hassle-free.
So, Paano nga ba makapaginvest sa Stock Market at maging shareholder ng mga
malalaking company na hindi ko na kailangan pang bantayan (lack of time) at aralin paang mga company bawat isa (lack of knowledge).
Let me Introduce....... MUTUAL FUNDS!
What is Mutual Funds?
Mutual funds is a pooled funds for many individual / investors and invested in
diversified portfolio of investments
.
> Individuals / Investors, Companies and other organizations will pool their money and will entrust it to a Professional Fund manager under a Mutual Fund company.
> Fund managers will invest the money to different Investment Securities
> Securities will generate the Returns.
(There are different types of Securities according to Investment Objectives)
> The return* that will be earned will pass back to the Individuals / Investors,
Companies and other Organizations.
*There is NO guaranteed returns.
TYPES OF MUTUAL FUNDS
Equity / Stock Fund
Where do they Invest: INVEST PRIMARILY IN SHARES OF STOCK
Risk Profile: AGGRESSIVE INVESTORS
Time Horizon: LONG-TERM INVESTORS
Balanced Fund
Where do they Invest: INVEST BOTH EQUITY AND BOND FUND
Risk Profile: MODERATE INVESTORS
Time Horizon: LONG-TERM INVESTORS
Bond Fund
Where do they Invest: INVEST IN LONG TERM DEBT INSTRUMENTS OF CORPORATE / GOVERNMENT
Risk Profile: CONSERVATIVE INVESTORS
Time Horizon: SHORT-TERM INVESTORS
Money Market Fund
Where do they Invest: INVEST IN SHORT TERM DEBT INSTRUMENTS OF CORPORATE / GOVERNMENT (1 year or less)
Risk Profile: CONSERVATIVE INVESTORS
Time Horizon: SHORT-TERM INVESTORS
IS IT THE RIGHT INVESTMENT FOR ME?
Ø KNOWLEDGE
u You don’t have to make a research for Fundamental and Technical Analysis for each Company you are planning to invest in just to maximize the return
l In Mutual funds, the Fund Manager will take care of choosing the best
companies to put your money in.
Ø TIME
u No need to keep an eye of the stock price movement in Stock Market from
9:30am to 3:30pm.
l In Mutual Funds, the Fund Manager will decide when they will buy and
sell those companies in Stock Market.
Ø EMOTION
u Some Stock traders lose their money in Stock Market mostly beginners
because they tend to be emotional especially when they see “red” on their
portfolio.
l In Mutual Funds, we’ll be entrusting our investment to the Professional
Fund Manager who has the expertise to position the investment according to its Risk, Objective and Time Horizon.
ADVANTAGES OF MUTUAL FUNDS
1. Professional Management
Manage by a full-time professional managers whose job is to
analyze the various investment products available in the market.
2. Low Capital Requirement
Most Mutual Funds in the Philippines require a minimum initial investment amount of only Php 5,000.00 and minimum additional investments of
Php 1,000.00
3. Liquidity
While the law provides that redemption proceeds must be given within
seven (7) banking days from the date of the redemption request, most funds are able to pay the redemption proceeds within the next day.
4. Convenience
Mutual Funds can be purchased directly through SEC-Licensed and
CIS only who normally provide personal service.
Also Investment applications can now do with the help of internet and
additional investment can now deposit thru banks internet banking such as Fund Transfer and Bills Payment.
5. Safety
Mutual Funds are highly regulated by the Securities and Exchange
Commission under the Investment Company Act and its Implementing
Rules and Regulations (IRR).
6. Transparency
Mutual fund company provide investors with updated information
pertaining to the fund. All material facts are disclosed to Investors as
required by the SEC.
7. Flexibility
Investors are allowed to modify investment strategies over time by
transferring / moving from one fund to another.
8. Potential Higher Returns
Since it is managed as a single portfolio, it is able to take advantage of
certain economies of scale. Also, very few individual investors can match
the experience and skills of professional fund managers who can select
those investment instrument that would give the best possible returns.
9. Diversification
Investors’ funds are diversified since it is invested in variety of assets.
Here is a saying that goes, “Do not put all your eggs in one basket.”
In Mutual Funds, investors achieve instant diversification because the
fund is required by law to be invested in a wide array of securities.
ARE GAINS IN MUTUAL FUNDS TAXABLE?
NO!
According to Republic Act No.8424 Tax Reform Act of 1997, Section 32 (B) (7) (h)
effective January 1, 1998. Mutual Fund “gains” are exempted from taxes.
This was done to promote long-term savings in the country.
I hope marami kang natutunan sa Blog na'to kung paano kumita ng mas malaki ang perang pinaghirapan mo sa tulong ng Mutual Funds.
Please leave a comment and share it to your friends para sabay-sabay kayong matuto. :)
Your Key-bigan to Success,
Hello Andrea! Thank you for visiting our blog site. God bless!
ReplyDeleteI’m planning to invest in mutual funds as many of my colleagues have also advised me for it. But before I consider an appropriate mutual fund plan, I want to do a proper Risk Profiling to evaluate risks associated and will then proceed accordingly.
ReplyDeleteGreat Information! Its looking Nice.Useful for me to develop my knowledge. Thank you!
ReplyDeleteYou can invest in stocks yourself by buying individual Stocks & Shares or mutual funds,IPOs, or get help investing in stocks by Visit stockinvestor.in
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