A mutual fund pools money from individual investors in order to buy stocks or other types of investments like cash, bonds, and real estate. The mutual fund company hires money managers to invest the money collected from investors. In buying a share of a mutual fund, you will share the profits and losses of the fund’s investment portfolio proportionately with other investors in the same pool.
By purchasing shares in a mutual fund rather than buying individual stocks, you not only let the fund managers invest your money, but also spread out your investment risk (also known as diversification) since you own shares of hundreds of stocks instead of a single stock.
A mutual fund share is calculated based on the fund’s net asset values (NAV). Fund NAVs are calculated at the end of each business day by adding up the total value of the fund’s investments in stocks and the like and dividing it by the number of fund shares outstanding.
Related articles:
Investment Alternative - Filipinos found a lucrative investment instrument in mutual funds. With interest rates on ordinary savings deposits down to two percent and earnings from Treasury bills not much better, Filipinos with funds set aside for investments are looking for alternatives. Enter mutual funds.
Investing in Mutual Funds - Building for Your Future Money is precious. As they say, it doesn’t grow on trees. But you can make it grow, even in this time of economic hardship. How? Simple. By investing wisely.
Here’s the Directory of Philippine Mutual Funds with the latest data.
Investment Company Association of the Philippines (ICAP)
The top mutual fund companies you can check:
- ATR-Kim Eng Securities, Inc.
- First Metro Investment
- Philam Strategic Fund
- Philippine Equity
- Sun Life Prosperity
Online forum thread about mutual funds - very informative!
Related Posts:
- MoneyBiz
- Mutual Funds: What Are They?
- Frequently Ask Questions (FAQs) on Mutual Fund
- The Benefits of Mutual Fund Investing
- Investing in Mutual Fund
- 11 Ways to Invest Your P100,000 with the Lowest Risk
- What and Why You Should Know About UITF?
Entries (RSS)
March 1st, 2008 at 3:24 am
Ladies and Gentlemen,
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February 26th, 2008 at 3:15 pm
Dear Sirs,
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October 10th, 2007 at 6:15 pm
for this post
Anonymous Says: 3/29/2006 07:25:00 AM
Yup, mutual fund is better earning than bank savings deposits. It’s for those who does not want to learn the ins and outs of stock markets and other investment types..they act as the middleman, the profit you get from mutual funds is net after all the expenses/salaries/etc.etc. of the fund managers are deducted …For those who would like to learn more on Financial investments…educate yourselves esp. the Stock Market and do your own investing, you will get more profit ..but you should understand what you are doing before diving into any investments!
Anonymous Says: 3/29/2006 02:25:00 PM
yeah. way better than banks. I would suggest you invest in the less risk funds. those funds that invest more on government securities. That way mas stable ang kita. Choose companies with good track records and yung financial standing is good.
Anonymous Says: 4/18/2006 06:23:00 AM
I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
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Take a look at Wallstreetwinnersonline.com
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Eu-Leh Says: 4/18/2006 05:23:00 PM
thank you guys for additional infos and for dropping by.
pinoypiper Says: 5/11/2006 09:13:00 AM
Been investing in PhilEquity Mutual fund for 6 years. Happy to say that the value of my shares has doubled. Mutual funds are the best. beats the bank any time. for stability I also invest in PhilEquity’s Money Market fund.
Anonymous Says: 10/29/2006 04:01:00 PM
Are mutual funds the same as UITF offerd by banks??
what company do you recommend for a starter in mutual funds???
Anonymous Says: 5/22/2007 05:13:00 AM
well sometimes it is safer to investment in mutual fund rather putting up your own business and worries of the headache of running a business.
If your return on your investment is more than earning from your business, is it much better just put your money in mutual fund. I get from mutual fund, return of 13% per annum.
Just think about it.