List of Mutual Funds to Buy

by Gily Tenorio on May 6, 2010

in Mutual Funds

In the Philippines, a mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment instruments like stocks, bonds, money market instruments, other mutual funds and commodities like gold and silver.

The mutual fund is managed by a fund manager  that buys and sells the fund’s investments in accordance with the fund’s investment objective.  In the Philippines, you can buy mutual funds in a mutual fund company. which is regulated by Securities and Exchange Commission (SEC). Mutual fund has many types depending on where the fund will be invested. The list below summarizes various types of mutual funds in the Philippines you can buy.

1. Stock/Equity Fund

Stock or equity mutual fund is the most common type of mutual fund which is a fund invested purely on equities or stocks. The fund manager selects stocks that he determined to be profitable to invest in. This type of mutual fund is the riskiest among mutual fund since the performance of this fund depends on the stock market but will give you the highest return. When you buy equity mutual fund, it is just like investing in stock market indirectly.

2. Balanced Fund

Balanced mutual fund is a type of mutual fund invested in stocks and bonds which has less risk compared to equity fund. Balanced fund will give  you an average return of investment.

3. Fixed-Income Fund

Fixed income mutual fund is invested in any instruments that yield fixed regular income. This type of fund has the least risk of losing your money because this is not dependent on the stock market but will give you lesser  return then equity or balanced-fund.

4. Money Market Fund

Money market fund is a type of mutual fund invested in short term debt securities. Money market fund limits loss of investment that may be cause by market, credit and liquidity.

Depending on your investment goals, you can buy several types of mutual funds. Normally, in the Philippines when you apply for a mutual fund account in a mutual fund company, they will give you a set of questionnaires so that they can determine which mutual fund is best for you.

In my case, I bought Equity and Balanced mutual fund in First Metro Asset Management, Inc. (FAMI), a reputable mutual fund company in the Philippines. If you want your money to be at the safest mutual fund, you can choose the fixed income fund, however,  it will give you very minimal return.

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{ 8 comments… read them below or add one }

Blaisenjc_1217 October 16, 2011 at 12:54

Hi
i would like to ask if mutual funds & other investment instruments are covered by PDIC & how much they can cover?

Reply

sally collins June 18, 2011 at 23:27

please give me some useful tips about investing on bonds or mutual funds. which one is better. thanks a lot.

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Sally collins September 16, 2011 at 23:40

thanks a lot for the tips about investing , can you please tell me how much do i need to invest, is it okay to buy or invest every month depending on the amount of money you have .how do i buy the shares or bonds from abroad? thanks.

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Jenalin May 12, 2011 at 10:58

Hi,

you say fixed income fund is less risky. Can you give a range of how much percentage we can get from it – just an idea of how much is minimal rate here. Can you say it’s lesser than investing in bonds?

Reply

Gil May 14, 2011 at 06:39

Hi,

Normally the rate is around 8-10% (FAMI mutual funds).
Fixed-income MF is also invested in bonds.

Reply

Lianne April 13, 2011 at 12:17

Hi. Thanks for this site. I have a few questions, though.
1. How do I start investing in a fixed income mutual fund company? Do you have any list of legitimate companies to choose from here in the Philippines?
2. How much is the initial investment fee?
3. How much is the regular fee? Is it monthly or anually?

I’m sorry as I’m very new to this. I want to start young. Thanks in advance.

Reply

Gil April 13, 2011 at 22:55
Ruth December 7, 2010 at 04:19

these information are very useful to me. 🙂
thank you so much.
may be soon i can manage to invest some to mutual funds.

thank you for your help!

cheers!

ruth

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