money you need to start opening a mutual fund? What are the best mutual fund
companies to invest with? Is your fund insured in the PDIC just like savings account?
Those are just some of the questions we are going to answer here so read on.
What you need before investing in a Mutual Fund
Knowledge youre lucky because you learn the basic knowledge and concept of Mutual
Fund 101 here aside from getting to know your Fund so continue reading.
Time every investor must have his/her target time or goal for the funds life
Money of course you must have the fund in order to earn some more
-it is a type of investment wherein you join other investors and corporations to
form a massive fund which will be handled by an expert/professional who is
called fund manager for diversified portfolios of stocks, bonds, securities, money
markets and other mutual funds.
Things
are
mutual just like a budding love and relationship. Are you familiar with MU (a.k.a.
Mutual Understanding?) After you get to know each other and fell in love with MF,
you still need to get to know MF and trust MF. Since you have a mutual bond,
when the fund incurred loss, you incur loss too and when it incurred profit, you
incur profit. Either way, you still invest.
and obviously you just let him drive till you both reached the destination. Like a Mutual
Fund, you let the Fund Manager drive his way and execute strategies to make your fund
grow and maximize earning potential until you reap profit on your target period.
Thats not all you need to know yet. You need to know which way youre goingKnow
the types of MF.
CC BY Alan O Rourke
Apparently, the higher the risk, the higher the return or profit.
Your Risk tolerance are you an aggressive or conservative type of investor? How
would you take the risk, to what extent and level in order to reach your earning potential?
Remember, theres always risk attached to investing and theres no guarantee youll gain
or lose.
Your Financial goal why and how are you investing? Are you investing half of your
regular salary or investing a million pesos you have made recently? Are you expecting
capital preservation or youre expecting money growth for future retirement? How long
would you like to maintain it and when is your target time to redeem the fund.
Your Time How long would you like to put your fund? This is simply about your time
horizon in investing until redeeming. If you have a target profit, you also have a target
time.
I also recommend checking the past performances of the mutual funds so you know
which one performs better. You can ask your mutual fund adviser for a copy or just
check them at Bloomberg.com or the MF companys website. You must know the name
of the Fund before you can check it online.
NAVPS
Amount (P)
Income or Loss
June 2013
1.00
100,000
n/a
June 2014
0.80
80,000
-20,000
June 2015
1.30
130,000
30,000
June 2016
2.00
200,000
100,000
Are you deducted for taxes when you withdraw your mutual fund?
If you earned gains at the redemption, usually theres no need for withholding tax since the
amounts are net (net asset value) already. Now that is good news.
Want to know about these strategies and stats of your fund? Check or view your mutual
fund performance reports.
Why rich and smart people have mutual funds and why you too should open one?
Mutual funds are not new to wealthy people as they have many and different financial
wheels that drive their money wagon. If you are smart and wise, you too must have one
or some already. Im not gonna discuss about rich and smart people here as Im just a
commoner. And thats no excuse to have a mutual fund too. I decided to have some
mutual funds to diversify my money.
I mean, wouldnt it be amazing if you let your money work for you instead of you
working for more money?
Think about it. If you just rely on savings and your SSS or GSIS, it wont be that much.
Why cant you settle a special amount every month for another money wheel so at some
time or point in your life, you have 10 million or more. Time is ticking and time is money.
Start your investment now. Start by knowing the best mutual fund companies in the
Philippines this 2014.
To know more, read about Mutual Funds vs UITF and their Similarities, Differences,
Advantages and Disadvantages.
My own quote for today:
Wouldnt it be amazing if you let your money work for you instead of you
working for more money? Fehl Dungo
Now, share you investment strategies and insights in the comments below. See you
soon and thanks for reading!