MUTUAL FUND INVESTING
HOW MUTUAL FUND WORKS
Mutual funds are professionally managed pooled funds from different investors. It is allocated to purchase variety of investment options like bonds, stocks, and other investment products. When you invest in mutual funds, you entrust your money to a professional fund manager who can grow it for you. By pooling our funds with those of other investors, it creates a larger capital to invest.
The Securities and Exchange Commission (SEC) regulates mutual funds companies in the Philippines. In terms of regulation, Mutual Fund is considered to be better because they are subject to full disclosure and issuance of reports.
BUILD YOUR WEALTH THROUGH MUTUAL FUND INVESTING
3 STAGES OF OUR LIFE
MAN AT WORK, MAN AND MONEY AT WORK, MONEY AT WORK!
TYPES OF MUTUAL FUNDS
Bond Fund
Funds are invested in fixed-income, long-term securities such as Philippine treasury notes and other government bonds and corporate bonds. Ideal for low-risk investors or investors that are already on their senior years who want to protect their savings against inflation while earning higher profits than time deposits and money market investments.
HOW DOES A MUTUAL FUND MAKE US MONEY?
Asset/Capital Appreciation
Capital appreciation is an increase in the price or value of assets. It may refer to appreciation of company stocks or bonds held by an investor.
Over time, when the fund you’re investing in sells securities that have increased in value, that fund has a capital gain, which is passed on and distributed to the fund’s investors. Whatever the mutual fund company is earning, it would be the same as the investors.
Dividends
Another possible way to earn in a mutual fund investment is through a dividend. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders. You may receive the payment in check or reinvest the profit to buy more shares.
6 WELL-KNOWN ADVANTAGES OF MUTUAL FUND INVESTING
Accountability & Safety
Mutual funds are highly regulated by the Securities and Exchange Commission (SEC) under Investment Company Act and its Implementing Rules and Regulations.
Affordability
For as low as P1,000, you can start investing in mutual funds and a minimum of P500 for additional investment.
Professional Money Management
Mutual fund investors benefit from the expertise and full-time service of professional fund managers who make investment strategies and decisions on their behalf.
Liquidity
Mutual funds are highly liquid investments. You can decide to buy or sell your shares immediately.
Convenience
You can open your own mutual fund account by approaching a financial educator.
Good and Safe Diversification
Mutual funds in the Philippines are designed to manage risks by holding several investment types or companies.
mutual fund companies
Soldivo Funds, PhilEquity Management Inc., Philam Asset Management Inc., Sun Life Asset Management and ATRAM Assest Management are the Mutual Fund Partners of IMG with Rampver Financials. When you directly invest in these companies or any mutual fund company, your money will have a deduction for an entry fee or the so-called "sales load" and it ranges from 1.5% to 5% every time you invest money to them. But, if you are an IMG member, you no longer need to pay the sales load because it is part of the benefits of being an IMG member.
See IMG Members Benefits.
HOW CAN SAVING NOW SUSTAIN YOUR RETIREMENT?
Make the rest of your life, the best of your life.
While we are young and able, let us learn how to let money work for us. Sooner or later we get old, tired and unable, but money never gets tired, never sleeps and complains. We should be the master and make money our slave, not the other way around.
The main goal of retirement is to enjoy the fruits we planted while we were working and for us not to become a burden to our family when we get old. Everybody deserves to enjoy their retirement years especially for people who have worked so hard during their productive years. The sad truth is, there are a lot of poor retirees in our country. These people did not plan to fail, they just failed to plan.
We need to change our money mind-set, but we have to understand first how money works.
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Successful investing takes time, discipline and patience. No matter how great the talent and effort, some things just take time. You can't produce a baby in one month by getting nine women pregnant.
Warren Buffet
CEO - Berkshire Hathaway
Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking of individual stocks.
Ron Chernow
American Journalist
FATIMA ALVAREZ-CUIZON
Financial Educator - International Marketing Group
Associate Financial Planner - RFP
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