Mutual Funds: Higher Yielding Investments than Time Deposits

[makie]

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Philam Asset Management, Inc. (PAMI) offers a wide variety of investments that gives higher yields than time deposits. Such kind of investments are called mutual funds.

A mutual fund is a pool of investors money that is being handled by a group of professional fund managers. Just like time deposits, mutual funds are hassle free investments because in behalf of the investors, the professional fund managers does the management of the funds.

Time deposits give an average yield of 3% to 3.5% a year which is even less than the inflation rate which is at 3.8% resulting to a net yield of -0.3%. Though there is no such thing as negative interest, the net yield only shows that money isn't really growing in time deposits or when the inflation rate is higher than the investment rate.

This year alone, from January until Sept. 10 (today), PAMI has already gone up by 20.42% in its stock funds, 18.65% in its balanced funds, and 4.71% in its bond fund far beating time deposits and the inflation rate.

Historical data shows that mutual funds (stock funds) go up by an average of 12% per year.

In 2012, Philam Asset Management, Inc. (PAMI) is by far one of the best performing mutual fund company in the Philippines. The performance of PAMI (as well as other mutual fund companies) can be checked in this site: //pifa.com.ph/factsfignavps.asp

For the different kinds of funds that PAMI offers, please refer to this link: //www.philamfunds.com.ph/products1.php

Philam Managed Income Fund, Inc., Philam Bond Fund, Philam Dollar Bond Fund, and PAMI Global Bond Fund, Inc. are advised for investments of at least a year to not more than 3 years. Bond funds are also highly advised for people nearing retirement and are looking for a steady flow of income.

NCN Mutual Fund of the Philippines, Inc., Philam Fund, and GSIS Mutual Fund are advised for investments that span from at least 3 years but not exceeding 5 years.

Philam Strategic Growth Fund is advised for investments that have spans of at least 5 years. This kind of fund is highly advised for young people who are still looking at at least 10 years before retiring.

Bond funds are invested in fixed securities such as government and corporate bonds while equity/stock funds (such as Philam Strategic Growth Fund) is invested in stocks. Balanced funds is a mix of bonds and stocks/equities.

Aside from the better rates compared to time deposits and giving higher yields and beating inflation, what other benefits does mutual funds provide?

*Mutual funds provide instant diversification because the fund managers will not invest on a single stock or bond alone. Diversification is one very effective way in mitigating investment risks because it offsets those investments that aren't doing well.

*Mutual funds are relatively safe. The government pays the yield of government bonds, companies pay dividends of stocks. The mutual fund company is simply a means to have access to these investments. Mutual funds are also being regulated by the securities and exchange commission (SEC).

*For people with very limited or no knowledge and experience in investing, mutual funds provides the perfect avenue because a professional fund manager handles all the investments. It basically works like time deposits wherein the depositor can leave the money in the bank and expect a gain after a year. In mutual funds, gains can be realized within days.

For those who are interested to know more about mutual funds and what Philam Asset Management, Inc. has to offer or those who are interested to start their investment/savings, you can reach me at either of these numbers: 09328592360 and/or 09264809304.

Statistics show that around P6 trillion worth of money are in time deposits while only around P500 billion are in mutual funds. Considering the inflation rate of 3.8%, a lot of people's money are not growing technically and are being eaten up by inflation. Make and get the most out from your money by investing/saving in mutual funds.

**Philam Asset Management, Inc. (PAMI) is a sister company of Philam Life which is considered as one of the leading life insurer in the Philippines. As of now, PAMIis handling around P27B worth of funds.

Be on the better way towards financial freedom, invest in mutual funds now!

[makie]

Invest in mutual funds and make your money grow faster than the usual savings and time deposit accounts.

[makie]

Comparison of mutual funds and time deposits

Similarities: Mutual funds and time deposits are similar in a sense that both are very liquid. In fact, mutual funds are more liquid than time deposits because your money can immediately earn an interest a day after investing it while in time deposits, it will take a year for it to earn an interest.

Differences: Mutual funds and time deposits have lots of differences. First, mutual funds are investments while time deposits are deposits. In mutual funds, your money will be invested in higher yielding securities such as stocks/equities, financial papers, and bonds. In time deposits, your money will be lent to somebody else or to businesses at a higher rate. Time deposits normally give interest rates of around 3% to 3.5% per year while interest rates on loans vary from at least 5% to as high as 8%. Banks earn a lot in time deposits through spreads (the difference between the interest rate of the loan from the deposit). Second, since mutual funds are investments, its returns vary. It can go up to as high as 50% (or even higher) in a year. Time deposits are fixed and are very low. Third, mutual funds are tax free while time deposits are subjected to tax while pulls the net interest rates even lower.

So for basically the same features but with much better benefits/returns, invest in mutual funds now. Time deposits are things of the past and are never considered as investments because it can't beat inflation.

Invest in mutual funds now. Contact me at either of these numbers for details: 09328592360 and/or 09264809304.

[makie]

Thought of the day:

More than P6B of people's money are being deposited in time deposit accounts while a lot more in savings accounts. Only around P500B are being invested in mutual funds which shows that majority of the people's monies are not really growing significantly. The inflation rate, which is the rate of increase of prices of commodities, is at 3% while time deposits have an average interest rate of 3.5% resulting to a net increase of 0.5% a year (still not considering the taxes). In mutual funds, money can grow by as much as or even more than 10% in a year which normally outdoes time deposits. Considering the inflation rate, mutual funds beat inflation rate by a mile which means money is really growing in mutual funds.

Time deposits are things of the past because interest rates are normally high decades before while inflation rates are lower. These days, inflation rates are higher and TD interest rates are lower or decreased resulting to net losses. Mutual funds are the solutions to the new situation. Most people are stuck and are applying the old solution to the new problem or applying an old and the not applicable solution to the problem.

Invest in mutual funds now and make your money grow faster.

[makie]

Up for today. Get the most from your money by investing it in higher yielding securities. Invest in mutual funds now. Invest in PAMI, one of the most trusted and leading mutual fund companies in the Philippines with 20 years of history of stability.

[makie]

A total of roughly P6B are deposited in time deposits that give a yield of around 3% to 3.5% a year while only around P500M are being invested in mutual funds which gives an average of 10% to 12% a year (on general). Inflation rate is at 3% a year which means time deposits only give 0.5% interest rate the most as net and that doesn't include charges and taxes yet.

Bottom line, money doesn't grow in bank deposits. Invest in mutual funds now to get the most out from your money.

[makie]

Invest in any of Philam Asset Management, Inc's (PAMI) mutual funds and enjoy a high yielding investment conveniently. Below are the YTD* yields of each of PAMI's mutual funds (as of Sept. 17, 2012):

Philam Bond Fund +4.56%
Philam Dollar Bond Fund +9.04%
Philam Managed Income Fund +2%
Philam Fund +21.64%
GSIS Mutual Fund +21.97%
Philam Strategic Growth Fund +23.55%
PAMI Global Bond Fund, Inc. +2.88%
NCN Mutual Fund of the Philippines, Inc. +18.51%
PAMI Asia Balanced Fund, Inc. 9.42%

Curious about how to invest in these high yielding investments? Contact me now!

*YTD (year-to-date) is the total return of the year (from January 1, 2012 to the latest date)

[makie]

Up for today.. Philam Strategic Growth Fund has already gone up by 24.02% already this year. Don't miss this great opportunity to make your money grow faster.

[makie]

Up for today..

[makie]

Up for today.
The stock market may once again go back up anytime next week.
Take advantage of the temporary drop and buy shares cheap.