Completed the Redemption of FAMI Mutual Funds

by Gily Tenorio on September 16, 2011

in Mutual Funds

Last week, I redeemed my FAMI mutual funds because we need cash to pay for the house we bought. I only redeemed SALEF and SALBF. I still have SALFIF in my account. It took one week to complete the redemption process since I am out of the country but anyhow I was satisfied with the profit I earned from it.

In just 1 year and 8 months, I gained more than 22% in my equity and balanced fund. It is very nice to get that kind of return but I know some people can do more than that. It is much better than investing your money on time deposit which can give you a maximum of 4-5% per year.

In addition, it is far much better than putting your money on savings account which will give you a measly 0.5% per year. It is the reason why I’m encouraging you to start investing in mutual funds. It is one of the best investment for OFW available these days.

The Story of How I Redeemed my FAMI Mutual Funds

First of all, in order to redeem your fund, you should fill up a redemption form and then send it to FAMI office together with the CORs or the Confirmation Official Receipt they sent to your mailing address every time you purchased a mutual fund.

This COR is the reason why I took one week to finish my redemption because one COR I have not receive. So you should keep all the COR for future use. In addition, I need to send the forms via post office from Korea to Philippines but I used EMS to make to make it faster.

A FAMI employee send me an email to get an affidavit stating I didn’t receive the COR in order to redeem corresponding mutual fund. However, I am here in Korea and it is hard to get an affidavit so I told her if there are other ways to redeem that lost COR. In the end, she told me just to write a formal letter to FAMI VP stating that I didn’t receive the COR.

Just a tip, in the redemption form, you need to state the number of shares you want to redeem and the corresponding COR. You should also write the bank account where you want FAMI to deposit the proceeds of redemption. You may also get the check in their office or authorize a representative to get it instead of you.

Final Thoughts

Lastly, maybe if I’m there in the Philippines, it will just take 2 to 3 days to complete the redemption. It will be also easier and faster to redeem the funds if FAMI can accept just scanned copies of redemption forms, the statement of account and valid ID just like CitisecOnline is doing when someone withdraw funds from them.

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{ 7 comments… read them below or add one }

aybi March 25, 2012 at 12:47

hi learnfe, i really admired the site you have here..
and all the post are so inspiring..
and interesting, especially I am planning to begin my mutual fund this week.. and I really admire that you answer all the questions of the people..

Thanks for the wonderful site!

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Gil March 25, 2012 at 13:13

Hi, Thanks for following my blog.

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Sai March 9, 2012 at 01:41

Hi. How will I know the no. of shares that I have? Will it be shown to my account once I subscribed?

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learnfe March 16, 2012 at 13:28

Hi, you will know it through your statement of account. You should request it to FAMI by sending them an email.

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learnfe January 28, 2012 at 06:59

Hi Mahaile,

You could redeem a part or whole of your mutual fund investment. It really depends on you how much you want to redeem. Also, if you will redeem the whole amount, you can start investing again, there’s no problem about that.

Reply

zurine January 25, 2012 at 06:46

Hello! I got a lot of ideas from your blog. Thank you for sharing this with us. I just would like to ask if I can redeem part of my investment only or it must be in full. Just like you, what if 3 years after I need the money but I still want to continue my investment, what will i do? Redeem the whole amount and start a new investment?
 

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learnfe January 28, 2012 at 06:29

Hi zurine,

You can redeem part or whole of your investment. it depends on what you want. You may also redeem the whole amount and then invest again, there’s no problem about that.

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