Investing in Mutual Funds: an OFW Investment

by Gily Tenorio on July 7, 2010

in Mutual Funds

When I returned to Philippines from South Korea last January 2010, I made it sure that I can open a mutual fund account as one of my investment for working abroad. I want my money to work for me just what financial guru is teaching like Robert Kiyosaki and Francisco Colayco. Actually, before I went on vacation at that time and several months before, I’m studying which mutual fund I will buy. I think mutual fund is one of the best investment for OFW.

So I researched in the Internet about the performance of mutual funds in the Philippines. I read blogs frequently dealing with mutual funds so I will have enough knowledge and strategy in investing in it. I became interested to First Metro Assets Management, Inc. (FAMI) and chose it because it is backed by Metrobank which I think has a good management; it has low NAVPS (net asset value per share) and good return based on their previous performance in the past 4 years.

How I Opened My Mutual Fund Account?

When I opened my account in FAMI, I went to their office in PSBank building along Paseo de Roxas Avenue in Makati. I brought all the requirements which I got from their website. It took only less than 30 minutes for the application to be processed and approved. There are no hassles and the customer agent was really nice. She helped me to choose which type of mutual fund suited for my investment goals.

Actually, when you applied for FAMI mutual fund account, you will be given a set of questionnaires and based on your answers, the customer agent will determine your score with corresponding type of mutual fund suited for you. You can also apply mutual fund in FAMI even if you’re abroad, just visit their website for more information: fami.com.ph

I only invested P10, 000 pesos in January 2010 and so far as of this writing, the return is at 15% or equivalent to P1, 500. I didn’t do anything just open a mutual fund account and invest my money on it and now there’s a P1,500 pure profit after 6 months. Think about it, supposed I invested P100, 000, how much is my current profit at 15% return rate. It’s P15, 000. That’s better profit than savings account or time deposit.

The nice thing about investing in mutual funds is that you invest once and you’ll just wait for it to increase its NAVPS. You can’t control it since only the mutual fund manager has the access to your funds. He’s the one that will buy or sell shares of stocks, bonds or other securities. Investing in mutual fund specifically on equity fund is just like investing in stock market indirectly.

A word of advice: study first before you invest in mutual fund, and money invested in mutual fund is NOT covered by insurance from PDIC.

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{ 17 comments… read them below or add one }

Liza March 24, 2012 at 03:29

hi, just want to check how can i invest in the stocks of URC.

thanks.
Liza

Reply

jeng March 4, 2012 at 16:42

Hi, very nice article…  just want to ask if you already tried to open or add additional investment on FAMI mutual funds through online? I am an ofw and i just have some concerns if FAMI would really open me a mutual fund account if I apply online since I can’t go to their office personally.

Tnx in advance

Reply

learnfe March 7, 2012 at 12:04

Hi, you can open an account even you’re in abroad, y, you just need to send the forms and requirements to FAMI. You can go to their website to learn more:
fami.com.ph

Reply

Toni August 5, 2011 at 09:46

Hi. Tnx for the info, very helpfull indeed.
Is it advisable to hold on to a mutual fund for
an extended period ( say 10 years or more) under
a monthly subscription plan?

Tnx ver much

Reply

Anonymous August 6, 2011 at 02:38

Hi Toni,

It is better to buy mutual funds in a regular interval, say monthly or quarterly, if you can. It is better to do cost averaging than one-time investment unless you bought the MF for a very low price.

Reply

Acsayson August 6, 2011 at 11:09

Thank you for the reply.

I really appreciate your articles.

Reply

Kris July 21, 2011 at 08:43

Hi, can you please tell me what cost averaging means? How do you maximize your earnings from a mutual funds? strategy etc.. tnx!!

Reply

vee June 15, 2011 at 16:03

hi! im grateful to come acros your blog. i just want to know what are the risks of mutual funds being “NOT covered by insurance from PDIC?” thanks

Reply

wynbol April 13, 2011 at 11:48

Hi Gil,

Good day! I have been working here in Singapore for the past three years. I happened to open the book of R. Kiyosaki and FJ Colayco which have inspired me to plan my retirement asap. I dont’ have any idea about mutual funds but i’m interested to invest. Is there any website(s) or tips that you can give me so i can easily understand and study mutual fund investment in an easiest way possible. Thak you…

Reply

Gil April 13, 2011 at 22:54
NORMAN March 25, 2011 at 11:55

im an ofw here in the uae, please help me to invest in mutual funds while here, where or how can i open an account in FAMI. Looking forward for your help, thanks

Reply

Gil March 27, 2011 at 22:43

Hi Norman,

Thanks for the visit. Before you invest in Mutual funds, you can study it first here in my posts: http://learnfinancialeducation.com/category/mutual-funds/
If you have any questions, just email me.

Reply

ruaninvestor March 16, 2011 at 03:57

Thanks for sharing ideas. planning to invest as well next year and with your blogs, im inspired to do it next year.

Reply

rhey November 25, 2010 at 03:11

i was able to start investing in FAMI mutual fund eventhough I’m here in HongKong. There is a legitimate coop which facilitates the investment as they signed partnership with FAMI. I will do cost averaging every month. the members of the coop can uy shares for as low as 1000 every month. The coop is an investment vehicle that gives opportunity to its members to invest in Equity mutual funds of FAMI, to co-own or co-partnership with the businesses they opened like chowking franchise and a bank. many of their OFW members are co-owners of the chowking and the bank. the bank has a special interest rate exclusive only for its member. like the time deposit interest rates from 5-6%. i’m going to take advantage of it also since its higher than other commercial banks and PDIC insured as well. this is a good news for ofws who cannot go home to personally buy shares in mutual funds. i was so thankful that i met them. this is a registered coop and managed by reliableand credible people… if you want to know this coop and great opportunities just email rhenzymalcobz@yahoo.com..

Reply

rhey November 6, 2010 at 15:39

good for you and thanks for sharing ideas. planning to invest as well next year and with your blogs, im inspired to do it next year. im still studying mutuals funds and blogs are really helpful…

Reply

Gil November 7, 2010 at 01:06

hi rhey,
thanks for dropping by. You can subscribe to my blog by entering your email and everytime I make an article, it will send directly to your email.

Reply

master October 25, 2010 at 13:52

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