How to Invest in Mutual Funds in the Philippines

by Gily Tenorio on August 7, 2010

in Mutual Funds

Mutual fund is one of the best investments available nowadays. When you invest in mutual funds, you will just wait to make your money grow and until the time you need the money you invested. Usually, people invest their money in mutual fund for several reasons such as for retirement, college expenses and for emergency fund. In this article you will know the procedures on how to invest in mutual fund.

In this article, you will learn how to invest in mutual funds through First Metro Asset Management, Inc. or FAMI and other mutual fund companies. Basically, this procedure can be applied to other companies as well.

It is a subsidiary investment company of Metrobank. Please be reminded that I’m not affiliated or connected with FAMI. This post is only for general information only. If you do have other questions and inquiries, you can check my other articles in this link.

Mutual Fund Investment Procedures

The procedures on investing in mutual funds are given below for you to have an idea on how the process is carried out. It is simple and easy much similar when opening a bank account.

1. Get a copy of prospectus of the mutual fund and study it.

In any kind of investing, you need to study, study and study. So what is a prospectus? In the prospectus, you can learn useful information about the mutual fund and the mutual fund company. You will know who manages the fund and most important, the present and past performance of mutual fund. You can get a prospectus in the website of mutual fund company you want to invest in.

2. Fill out an account opening form  and investment application form of the mutual fund of your choice.

When I invested in mutual fund, I went directly to the office of my mutual fund in Makati. Its very easy, it took only less than an hour to finish. However, even if you’re abroad or in far away places in the Philippines, you can  still invest by sending all requirements via post office or private courier. My friend invested in ALFM even he’s in South Korea.

Philippine Mutual Funds

Philippine Mutual Funds

3. Ready and furnish all application requirements.

a) For individual (personal) accounts, ready photocopies of two (2) valid IDs such as company ID, SSS/GSIS ID, Driver’s License, Passport or any government ID.

b) For corporate accounts, ready a copy of the following:
Articles of Incorporation and by-laws
SEC Certificate of Registration
Secretary’s certificate / Board resolution, authorizing the investment
Secretary’s certificate on the percentage of ownership/capital stock held by non-Filipino shareholders

4. Go to the office of your mutual fund company or send document via registered mail

To pass your requirements and application forms, you can personally go to the office of MF company or you may send it via registers mail of couriers. It will be better if you can call the mutual fund office so that you may know other requirements or procedures. Basically, the procedure listed here is common to all mutual fund companies.

5. Deposit your Initial Investment

Deliver your payment to the mutual company office, or deposit directly to the fund’s account. If you’re paying through checks, it should be made payable to the fund of your choice. When you opened the account directly to their office, you should deposit an initial investment for your account to be approved and active. The minimum initial investment is only P5,000.

6. Issuance of Official Receipt and Statement of Account

The mutual fund company will issue a receipt and statement of account where you can see the number of shares  you bought and its corresponding net asset value per share (NAVPS).

To Wrap Up

Basically, opening or buying a mutual fund involves careful study  and understanding of the fund. Study and research first before you invest. Knowledge and understanding of the investment is the key for a successful investing strategy.

If you have no enough information about mutual funds, you can start following this blog or any blogs that teach financial education, personal finance and investing lessons. There are many information out there particularly in the web. You only need to be patient and diligent.

About the Author:

GilGil Tenorio is a blogger, a husband, a father, and an active Christian. He likes playing guitar, C.S. Lewis, Plants and Zombies and NBA. Follow him at Facebook, Google+, YouTube and Twitter. Thanks!

Reference/ Image Credit: Stockvault