Mutual Fund Investment
By Delta_V
@Delta_V (14)
Philippines
July 16, 2012 11:01am CST
Hi guys,
I am planning to risk my P10,000 for mutual fund investment.
But I have little knowledge about it.
Someone says I can invest if for Metrobank MFI, but how??
Thanks! =D
7 responses
@elguardian (353)
• Malaysia
16 Jul 12
Mutual fund investment is a good way to invest your money. Of course, it is a little low risk and manage by profesionals. I will assume that your fund provider is from a bank or some kind. Mutual fund that i know are guaranteed or covered by the government so there's no worries about scamming here. All you have to do is go to the bank and ask their representative to advice you with you financial needs. You're low risk, medium risk or high risk investor. From there they will introduce to you with some of the funds available offered by the bank. Your money will be managed by fund managers. Interest will be earn on a yearly basis or per annum. In my country, depending on what funds you get to earn around 8% to 12% and the higher risk ones could also give you around 17%.
@elguardian (353)
• Malaysia
16 Jul 12
Mutual fund managers will do the investing for you. Your money and thousands other investors will be compounded and the banks or managers will decide where to invest, be it in property, oil, money market or some other stuff. You would be able to see all these information in a book called prospektus (if i am not mistaken). I can't really say how much will you earn because it really depends on the kind of funds that you decide to take and the kind of performance that the fund will give out. From what i know P10,000 x 8% (well just for example). That's the average return per annum a fund will get. Mutual funds is not a short term investment funds. It is long term. 5 years minimum and maybe 10 to 20 years maximum. There's no way you'll be tied by that amount of time of course. It is all decided by your discussion with the CFP (certified financial planner) who will take your information (names, age, profesion etc) and submit to the fund managers.
@elguardian (353)
• Malaysia
16 Jul 12
Ah i forgot to mention, mutual funds are compounded money used to invest in securities. The ones i told you about is actually unit trust but both work almost the same. The only difference is where the funds goes to.
@usemyname (640)
• Philippines
16 Jul 12
Mutual funds from banks give the lowest returns. I would highly suggest that you invest your money in insurance companies instead, the likes of Philam, Sunlife, Pru Life UK, etc. I once worked as an financial advisor for a certain insurance company and there's a significant difference from the returns from the banks and insurance companies.
@usemyname (640)
• Philippines
16 Jul 12
Yes they do and banks are having a hard time catching up.
By the way, if you want to have higher return from your investment, just follow this simple rule of investing: The higher the risk, the higher the returns. If there's no risk, chances are its a scam or fraud. This not only applies to mutual funds and other money market instruments, but also in business.
Good luck in finding the right investment that will cater to your risk appetite!
By the way, if you want to have higher return from your investment, just follow this simple rule of investing: The higher the risk, the higher the returns. If there's no risk, chances are its a scam or fraud. This not only applies to mutual funds and other money market instruments, but also in business.
Good luck in finding the right investment that will cater to your risk appetite!@elguardian (353)
• Malaysia
16 Jul 12
Agreed. No wonder insurance companies are making more money than banks in terms of investment and if i'm not mistaken, insurance companies offer more benefits and ways to earn in terms of investment compared to mutual funds.
@natliegleb (5175)
• India
16 Jul 12
ya go for it since its a big gamble and at the same time ,its a awesome investment to go with for sure.but the important thing here is you have to be very patient as it will take so much time to progress and multiply so henceforth.atleast gain some knowledge by reading about these investments as they are done in small quantity and i advise you to invest 100 shares in metrobank mfi as its a small share and it will depend on the company value and share trade stock market index.so be patient and wait for the best to happen.
Go through some finest trading firms to gain some good and quantitative knowledge about these indexes.it will help you
@pringu (151)
• India
19 Jul 12
Hi delta, mutual funds are great means to invest money. The basic reason being, mutual funds are generally managed by experienced professionals in financial management and also the regulators of the financial markets in a country looks after on a regular basis, the funds that are managed by mutual funds. So more often than not you would be gaining by investing your money in such schemes.
However, it would be very much advisable to do some research on the internet regarding the mutual fund you have given above. Mainly check for the past performances of the fund manager, the time period for which the mutual fund have been in existence, user reviews of the returns they have been getting on previously said basis etc.
@shahamed (92)
• Singapore
17 Jul 12
Its okay to have little knowledge. Mutual fund investment are for people who have no time or do not wish to put in much effort to go through research and technical analysis.
So when you put your funds into a mutual fund, professional traders use the pool of money ot invest or trade in securities that they think will give a good yield. I would suggest you put your funds in Mutual funds that have good track record and closely follow the indices
Happy investing...
@magnel (2263)
• India
16 Jul 12
In mutual funds, companies use 100% of our money to trade in stock market.
Here is how I understood it, 100% our money, 100% our risk, when losses happens we loose money (happened with my friend). If profits happen more than 50-80% of the profits are taken by the banks/companies and rest is given to us. Thats the reason they say to read the offer document carefully before investing in mutual funds.
As for my investments, I have planned not to go it.
