Mutual Funds of The Financial Institutions in The Philippines

Mutual Funds of the Financial
Institutions in the Philippines

GROUP 7
What is mutual fund?
 A mutual fund is an investment vehicle made up of a

pool of money collected from many investors for the
purpose of investing in securities such as stocks, bonds,
money market instruments and other assets.
 Mutual funds are operated by professional money

managers, who allocate the fund's investments and
attempt to produce capital gains and/or income for the
fund's investors.
What is mutual fund?
 Mutual funds give small or individual investors access

to professionally managed portfolios of equities, bonds
and other securities. Each shareholder, therefore,
participates proportionally in the gains or losses of the
fund.
 Mutual funds invest in a wide amount of securities, and
performance is usually tracked as the change in the total
market cap of the fund, derived by aggregating
performance of the underlying investments.
An article about ...
“Mutual Funds Investing for Beginners in the

Philippines”
August 28, 2018 | by Venus Zoleta

What are Mutual Funds and How Do They Work?
When you invest in mutual funds, you entrust your money to a
professional fund manager who can grow it for you. By pooling your
funds with those of other investors, a larger capital is created for
investing in assets such as bonds, stocks, and money market
instruments.
Mutual funds work like unit investment trust funds (UITFs).

Insurance providers and brokerage companies manage mutual
funds, while banks handle UITFs. The Securities and Exchange
Commission (SEC) regulates mutual funds companies in the
Philippines. For UITFs, the regulatory body is the Bangko Sentral ng
Pilipinas (BSP).
What are the Types of Mutual Funds in the Philippines?
• Investors can choose to put their money in one or a

combination of four basic types of mutual funds:
1. Bond funds
2. Equity funds
3. Balanced funds
4. Money market funds
How Can You Earn from Mutual Funds Investing?
Asset Appreciation
- 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.
Interest and Dividends

- Another way to earn income through mutual funds
investing is from the annual payment of interest on bonds
and dividends on stocks to the fund. You may choose to
either receive the payment via check or reinvest the profit to
buy more shares.
Why Invest in Mutual Funds?
1. Convenience
- Over the internet, you can easily invest in various
mutual funds that match your financial goal—whether it’s for
retirement, your child’s education fund, or any investment
objective.
2. Ability to Invest Without Blowing Your Budget

- Typically, mutual funds in the Philippines require at least
a PHP 5,000 initial investment and succeeding investments
of at least PHP 1,000. This makes mutual funds investing
affordable for newbies who don’t have much money to
invest.
3. Professional Money Management

- Mutual funds investors benefit from the expertise and full-
time service of professional fund managers who make
investment strategies and decisions on their behalf.
4. High Liquidity
- Mutual funds are highly liquid investments, meaning you
can buy or sell your shares immediately, usually within a
business day.
5. Good Diversification
- With mutual funds, your money is invested in a broad
variety of assets. Through this diversification, you minimize
the risk of losing your investments.
6. Safe Way to Invest

- Regulated by the SEC, they’re required to comply with
the Investment Company Act (Republic Act 2629). They’re
also banned from investing in certain assets and getting
involved in certain transactions. All these things protect
Filipino investors against illegal and unfair investment
practices.
Where to invest mutual funds?
Steps to Open a Mutual Fund Account
1. Visit the website of your chosen mutual funds company

or investment broker.
2. Proceed with your mutual fund registration.
3. Download the necessary documents and forms.
- Make sure to fill out all the forms completely.
4. Submit all requirements.
5. Fund your mutual fund account.
- atleast 5,000 pesos
Final thoughts ...
- Rather than keep all your money on your hands,

consider investing a part of it. Mutual funds are a great
starting point for anyone with little to zero investment
experience. Once you’ve decided that mutual funds
investing is the right option for you, then go for it!
-August 28, 2018 by Venus Zoleta

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Mutual Funds of the Financial

Institutions in the Philippines

 A mutual fund is an investment vehicle made up of a

 Mutual funds are operated by professional money

 Mutual funds give small or individual investors access

“Mutual Funds Investing for Beginners in the

August 28, 2018 | by Venus Zoleta

Mutual funds work like unit investment trust funds (UITFs).

• Investors can choose to put their money in one or a

Interest and Dividends

2. Ability to Invest Without Blowing Your Budget

3. Professional Money Management

6. Safe Way to Invest

1. Visit the website of your chosen mutual funds company

- Rather than keep all your money on your hands,

-August 28, 2018 by Venus Zoleta

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