What is Mutual Funds

by Gily Tenorio on October 1, 2011

in Mutual Funds

I have posted many articles in this blog about mutual funds and how to invest in it but this time I want to focus more on what mutual fund is and how it can be a good investment for you. Basically, a mutual fund is a collection or pool of money or funds from individual investors and companies. It is mutual since each investor agree and cooperate to have a single, large fund instead of small individual funds then invest it in stocks, bonds, securities or other commodities.

It is managed by an investment company or a mutual fund company headed by a fund manager that makes the decision where to invest the fund depending on the goal or objective of the fund. All of the information you may need to know about the MF can be seen in their prospectus which can be downloaded at the MF’s website. To give you some idea about MF’s common terms, you can visit this link: Common Terms in Mutual Fund Investing

To know more about the different types of mutual funds in the Philippines which you can invest in, you can go to this link to know more:  List of Mutual Funds to Buy

In addition, may be you are wondering why mutual fund can be a good investment or you are asking to your self why should I start investing in mutual funds. Actually, there are many investments that you can enter to aside from mutual funds. In the Philippines, you can also invest in stocks, UITF, retail treasury bonds, real estate and many other ventures that is legal and beneficial for the investor.

If you want to know the primary reasons in investing in mutual funds and the benefits you can get from it, you can visit this post to give you an idea: 6 Primary Reasons to Invest in Mutual Funds

In the Philippines, there are many mutual fund companies doing this kind of investment. Here in this article you can see the complete list of top mutual fund companies in the country today: List of Top Mutual Funds in the Philippines

Maybe you are an OFW working abroad for two years or for indefinite time and you’re looking for ways to invest your hard-earned money. You are studying and researching in the Internet or asking your friends and relatives which investment is good for you or much applicable for you. I can say it is mutual fund that is very applicable for OFWs. You may see the reasons below why I said this: Investing in Mutual Funds: an OFW Investment

One good thing about mutual funds is you can invest in it easily with just a small capital or first initial deposit of your account. You can start with just an initial money of P5,000. If you want to start investing in mutual funds, you can read this article: How to Invest in Mutual Fund: Learn Mutual Fund Investing

To see all the list of our mutual funds articles, please visit this link. Take note that mutual fund is not guaranteed by anyone that you will make profit. However, if you are disciplined and patient, you can absolutely gain a good profit from it. Make sure you have a long-term goal of investing, if possible, you should not withdraw your funds at least two years.

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