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. They are subject to full disclosure and issuance of reports to SEC and also required to submit regular reports to their shareholders like you.

Affordability

For as low as P1,000, you can start investing in mutual funds and a minimum of P500 for additional investment. Opening a regular bank account is much way expensive than opening a mutual fund account. Students or newbies can even avail since they don't have that big savings yet, they can invest with their allowance.

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. Especially if you are a regular employee or OFW and cannot monitor what's happening in the market.

Liquidity

Mutual funds are highly liquid investments. You can decide to buy or sell your shares immediately. Usually it takes 3 to 5 business days before you can claim your investment.

Convenience

You can open your own mutual fund account by approaching a financial educator like me and I can provide personal service. You can easily invest in various mutual funds that match your financial goal—whether it’s for retirement, your child’s education fund, travel goals fund or any investment objective. It is very convenient, no need for long bank lines or meticulous signing of paperwork! You can also invest subsequent investments - online or automatic debit deduction through auto-investment system.

Good and Safe Diversification

Mutual funds in the Philippines are designed to manage risks by holding several investment types or companies. By law, mutual fund should invest in various securities.

Why hold only JFC (Jollibee Food Corp.) shares when you can invest in JFC, BDO, AYALA Corp. etc. in mutual funds. When you put money in the bank, it means you are allowing the bank to borrow money from you. Your money will not stay in the bank, it will be reinvested in almost the same way as mutual funds. The only difference is, they won't give you back the earnings they acquire. Why lend money to banks only where you can put your money on a mutual fund investment that earns higher than them.