Mutual Funds Talk

[makie]

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We already have threads about investing and trading in the stock market and I think it would just be appropriate to start a mutual funds thread.

By definition, mutual funds is an investment vehicle that is made up of pool of different investor's money or funds with the purpose of investing it to stocks, bonds, money market instruments, and other assets. It is being managed and operated by professional and experienced fund managers who invest the funds with the purpose of seeking capital gains and income in behalf of the investors.

Mutual funds is more ideal, convenient, and practical compared to stock market investing and trading because of the following reasons:

[1] A professional fund manager manages and does the investing in behalf of the investors. People with little or no knowledge and background about investing can start a mutual fund account and still earn significant gains

[2] Diversification. If you invest in mutual funds, your money will be automatically be diversified into different securities as managed by the fund manager. Diversification minimizes the risk of losing the value of your investment.

[3] Affordable. For as low as P5000, you can already start your mutual fund investment. Some companies don't even require a minimum amount to start.

[4] Liquidity. Mutual funds are very liquid. You can buy shares or redeem your investments anytime. Most companies have holding periods though and they charge a fee if you redeem within the holding period.

However, mutual funds may have disadvantages compared to other investments as well, particularly stocks.

First, some traders and investors, especially those knowledgeable and experienced ones can do more than a mutual fund company.

Second, since the fund manager does the diversification, it may keep you from buying stocks and investments that you like. In addition to that, the fund manager has the connection to the different securities, not you the investor.

Third, mutual funds aren't PDIC insured because they are investments, not deposits. Their returns aren't fixed as well because they depend on the health of the economy or market.

However, the advantages of mutual funds outweigh its disadvantages. Long term, mutual funds can be very profitable and outdo interest rates in banks such as savings accounts and time deposits. Mutual funds also generally do better than the inflation rate which guarantees profit or growth.

Some of the better performing mutual fund companies in the Philippines are:

First Metro Asset Management (FAMI): FAMI's performance last 2011 was 8.18%, almost twice as PSE Index's performance which was around 4%. FAMI's net asset value per share (NAVPS) or price per share is currently at P3.8966 and for 2012, it already gained 3.26%.

First Metro's website: First Metro Asset Management Inc
FAMI also has an office here in Cebu located at Ground Floor, Metrobank Plaza, Osmeña Boulevard, Cebu City

PhilEquity (PEMI): One of the oldest mutual fund companies in the Philippines. PhilEquity started in January 1995 with P1.1 per share. Last December 3, 2010, PEMI's NAVPS or price per share has reach more than P20. That's 2000% in just 15 years time. As of this moment, PEMI's price per share is 22.8112. It has already gained 6.44% in 2012.

PhilEquity's website: www.philequity.net/

Philam Asset Management (PAMI): Philam Asset Management is the investment arm of Philam Life. It is also one of the better performing mutual fund companies in the Philippines. For 2012, Philam Strategic Growth Fund has gone up 7.8% and its price per share is currently P418.59. In 2011, PAMI mutual funds has hit P18.6B worth of total assets.

Philam Asset Management's website: Philam Asset Management Inc.

Sunlife Funds: The Sunlife Prosperity Equity Funds is one of Sunlife's better performing mutual funds. For 2012, Sunlife Prosperity Equity Fund already gained 6.65% and has a NAVPS of 2.8519.

Sunlife Funds's website: Sun Life Financial Philippines: financial services, financial planning, disability, health insurance, and life insurance company

**Those figures are derived from those company's equity/stock funds. Mutual funds have different types such as bond funds, balanced funds, and money market funds. Each type generally differ in the type of securities that the fund manager invest the money in and the risk-reward ratio.

Those companies are just a few of the many mutual fund companies in the Philippines. Learn how mutual funds work, invest in it, and make your money grow on a faster rate and keep it from losing its value because of inflation.

[arclops]

In addition to the above post, here is a complete list of Mutual funds in the country....

Investment Company Association of the Philippines

Additional information about Mutual fund can be found here...

Investment Company Association of the Philippines

[MK]

Add ta ni for those people who prefers a charted performance of Mutual Funds and UITF's in the Philippines.
Mas maayo man gyud na naa visual aid dba
Pwede sad nimo ma-compare ang mga funds by charting them together.

http://www.monitormyfunds.com/

Here is a sample:
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For "First Metro Save and Learn Equity Fund" Year-To-Date (YTD) performance:
(You can adjust the time frame using the appropriate button in the encircled part of the drawing below or manually dragging the slider that I marked with arrows)

[Nick Raquel]

In monitoring your funds, Bloomberg Portfolio Tracker is also an option.. You can also observe a visual chart representation, although I think NAVPS updating is quite delayed.

Monitormyfunds.com may it simpler.. Sobrang madami din kasing kung ano ano sa bloomberg kaya minsan nkakaoverwhelm, lalo na sa super novice like me

It may also be worth to mention how to start investing in mutual funds

This could be a great starting point Steps in Mutual Fund Investing | Mutual Fund Philippines

[MK]

The most important thing to do with Mutual Fund to optimize your return is by doing Cost-Averaging...meaning, regular contribution to your MFund. Just make it a habit doing monthly or quarterly contribution...before you know it, your Mutual Fund return may be even higher than the publish performance

If ganahan gyud ka mo invest sa mutual fund, ayaw na hulat nga naa ka dako money...start small and do regular contribution. Sometimes mas maayo na compared to one-time labi na if ni-tank ang market.

[Nick Raquel]

Yes, that's true.

The market can give you an emotional roller coaster. But if you have a goal, and if you've setup the strategy on attaining that goal, market swings should not affect you. Well, actually better said than done. Mahirap na hindi makaramdam ng greed and fear, but the most important thing is, no matter what you feel, believe in your strategy. Don't withdraw

[perla_puti]

ana diay nah

[makie]

Guys, keep in mind that mutual funds are long term financial tools. They are not some sort of magic wand that can give you instant and quick profits/gains. They may not work short term considering the market conditions. Mutual funds are investments and time is an ingredient in investments.

[MK]

Guys, keep in mind that mutual funds are long term financial tools. They are not some sort of magic wand that can give you instant and quick profits/gains. They may not work short term considering the market conditions. Mutual funds are investments and time is an ingredient in investments.

This is one of the most important of all...just think of it as your retirement fund if you can.
In my case, I pulled out all my equity and balance fund after 10 years since I manage my own fund now...but my fixed income fund still there for parking short-term investment (not advisable if its small amount kay kaunon ra sa mga front-end/back-end charges)
Ang fund managers man gud sa fixed-income funds has greater leverage compared to small investors when it comes to long term bonds and fixed income securities...need millions to be able to compete with return.

[Nick Raquel]

This is one of the most important of all...just think of it as your retirement fund if you can.
In my case, I pulled out all my equity and balance fund after 10 years since I manage my own fund now...but my fixed income fund still there for parking short-term investment (not advisable if its small amount kay kaunon ra sa mga front-end/back-end charges)
Ang fund managers man gud sa fixed-income funds has greater leverage compared to small investors when it comes to long term bonds and fixed income securities...need millions to be able to compete with return.

Wow! If given the opportunity, and resources, I would want to manage my own funds. But for now, I'll let my fund manager diversify my small investments.