Pls help!!! I want to KNOW and LEARN about MUTUAL FUNDS

[rescyth]

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This is actually true for shortterm investments but for long term, mutual funds are far better.

Explanation:
Before you invest consider your motive, is it short term or long term.

Short term: don't invest in mutual funds, banks are ok

long term: consider inflation and taxes, inflation is 7%, withholding tax is 20% of your interest.
Mutual funds average 8% to 12% longer than 5years

Key lesson
You must take a little risk so that you can outpace inflation

by the way, pdic now insures up to 500k

Pila ang e insure sa PDIC if $ account? 500k pesos ra ghapon? naay kbaw?

Salamat!

[Metz]

Originally Posted by kizj
malimot ko kon unsa tawag ana nila bro uy, sorry dugay na man gud ka naka invest sa MF pero mura gihapon na sila ug salesperson sa MF hehehe..depende na sa kana nga person nga maka assist nimo bro..naa man say daghan nga buotan ug sultihan jud ka sa tanan apil na ang risk, advantage ug disadvantage..etc..naa say uban nga pulos nindot ra ang isulti ug sales ra nila ang ila giapas (sorry sa wordings hihihi)..pero mas maayo jud bro kon mag study ka before ka makigsulti nila para naa ka knowledge daan bisag basic lang. pangutana jud sa tanan nimong pangutana nga mahuna-hunaan para makahibaw ka ug unsa imo sudlan...kon naa ka mga pangutana ask lang diri daghan man sad diri mga master na sa MF...

this is very bad practice. amo jud tudluan unsa ang risks and how to manage it. di sad ko pataka ug convince nya pag ma down ang market ako dayon basulon.

Pila ang e insure sa PDIC if $ account? 500k pesos ra ghapon? naay kbaw?

Salamat!

If they will, Im sure limited ra gihapon to 500k pesos.

[makie]

Investing brings along risk. The higher the risk, the higher the possible return. When it comes to mutual funds, the risk is higher compared to banks but logically, money doesn't grow in banks as much as in mutual funds. So why mutual funds?

1.) Mutual funds are diversified. If you invest in mutual funds, your investment will be invested not just in one company but in several companies. Diversification reduces risk since seldom or maybe never will it happen that all the companies that the fund managers invested in will all go down.

2.) Mutual funds are convenient. If you have some spare money, put it in mutual funds and you could forget about it. How? On the investors behalf, fund managers will do the investing. They are focusing on the market 24/7 and study the trend of the market.

Mutual funds is just like investing in the stock market only that in stock market, the investor does the work. Growth rates in investing directly in stocks might be higher than the performance of mutual funds but investing in stocks is only good for professionals or for people who have gained significant knowledge and experience in stock trading and investing.

3.) Mutual funds is easy. The process of investing in mutual funds is basically just the same as opening a savings account in a bank. You leave your money to the mutual fund company and let it grow. You don't need a knowledge about the stock market in order to let your money grow.

However, one should understand the basics in order to keep track of the investment. The fund performance is transparent and it could be tracked online on a daily, weekly, monthly, and yearly basis.

Before investing in mutual funds, do a research about different mutual funds companies and compare their performances for the past years or even decades. Mutual funds offers a good growth but you want to get the best growth right?

A good tip would be to further diversify by investing in more than one mutual fund company. the market is unpredictable and one company might perform better than the others. Another tip is to invest long term. The performance might go up or down and the risk is high if the time being is short. Past performances show that in time, it goes up.

[Metz]

Investing brings along risk. The higher the risk, the higher the possible return. When it comes to mutual funds, the risk is higher compared to banks but logically, money doesn't grow in banks as much as in mutual funds. So why mutual funds?

1.) Mutual funds are diversified. If you invest in mutual funds, your investment will be invested not just in one company but in several companies. Diversification reduces risk since seldom or maybe never will it happen that all the companies that the fund managers invested in will all go down.

2.) Mutual funds are convenient. If you have some spare money, put it in mutual funds and you could forget about it. How? On the investors behalf, fund managers will do the investing. They are focusing on the market 24/7 and study the trend of the market.

Mutual funds is just like investing in the stock market only that in stock market, the investor does the work. Growth rates in investing directly in stocks might be higher than the performance of mutual funds but investing in stocks is only good for professionals or for people who have gained significant knowledge and experience in stock trading and investing.

3.) Mutual funds is easy. The process of investing in mutual funds is basically just the same as opening a savings account in a bank. You leave your money to the mutual fund company and let it grow. You don't need a knowledge about the stock market in order to let your money grow.

However, one should understand the basics in order to keep track of the investment. The fund performance is transparent and it could be tracked online on a daily, weekly, monthly, and yearly basis.

Before investing in mutual funds, do a research about different mutual funds companies and compare their performances for the past years or even decades. Mutual funds offers a good growth but you want to get the best growth right?

A good tip would be to further diversify by investing in more than one mutual fund company. the market is unpredictable and one company might perform better than the others. Another tip is to invest long term. The performance might go up or down and the risk is high if the time being is short. Past performances show that in time, it goes up.

Amen.

mao ra jud ni ako giapply. Stocks give higher yields than MF, but the risks are way higher. I will invest in stocks someday once secure na akong goals for my mutual funds. I'm still investing in mutual funds for the education plan of my son, afterwards ako daughter napud. Once humana, I can take riskier investments.

I'm sure dali ra maka kita ug mentor within my team.

[mrx412]

Investing brings along risk. The higher the risk, the higher the possible return. When it comes to mutual funds, the risk is higher compared to banks but logically, money doesn't grow in banks as much as in mutual funds. So why mutual funds?

1.) Mutual funds are diversified. If you invest in mutual funds, your investment will be invested not just in one company but in several companies. Diversification reduces risk since seldom or maybe never will it happen that all the companies that the fund managers invested in will all go down.

2.) Mutual funds are convenient. If you have some spare money, put it in mutual funds and you could forget about it. How? On the investors behalf, fund managers will do the investing. They are focusing on the market 24/7 and study the trend of the market.

Mutual funds is just like investing in the stock market only that in stock market, the investor does the work. Growth rates in investing directly in stocks might be higher than the performance of mutual funds but investing in stocks is only good for professionals or for people who have gained significant knowledge and experience in stock trading and investing.

3.) Mutual funds is easy. The process of investing in mutual funds is basically just the same as opening a savings account in a bank. You leave your money to the mutual fund company and let it grow. You don't need a knowledge about the stock market in order to let your money grow.

However, one should understand the basics in order to keep track of the investment. The fund performance is transparent and it could be tracked online on a daily, weekly, monthly, and yearly basis.

Before investing in mutual funds, do a research about different mutual funds companies and compare their performances for the past years or even decades. Mutual funds offers a good growth but you want to get the best growth right?

A good tip would be to further diversify by investing in more than one mutual fund company. the market is unpredictable and one company might perform better than the others. Another tip is to invest long term. The performance might go up or down and the risk is high if the time being is short. Past performances show that in time, it goes up.

so for a newbie like me mao ni aqng nasabtan
-kung mf dapat long term jd aqng goal pra ma-appreciate nko ang tubo s aqng gi-invest
-naay mo-guide nko once mo-invest kog mf then makaget r cla ug commission if magpamember ko
-ang mo-guide sa aq mao pd ang moreport s aq f naunsa n aqng gi-invest
medyo hayag2x n aqng panan-aw aning mf bah but still on the process of learning ghapon..nahan au jd q makagets bah..thanks mga bro...hehehe

[wizard_jamex]

@mrx412

-kung mf dapat long term jd aqng goal pra ma-appreciate nko ang tubo s aqng gi-invest

correct

naay mo-guide nko once mo-invest kog mf then makaget r cla ug commission if magpamember ko

Yep, naa mo guide nimo but about sa "cla ug commission if magpamember ko". Wala ko ka gets.
Kung imo pasabot kung naa commission ang broker kung makaclosed ug account.

-ang mo-guide sa aq mao pd ang moreport s aq f naunsa n aqng gi-invest

YEP. CORRECT, SILA ANG MO ADVISE WHEN TO REDEEM OR NOT

medyo hayag2x n aqng panan-aw aning mf bah but still on the process of learning ghapon..nahan au jd q makagets bah..thanks mga bro...hehehe

No Problem, we will guide you.

[makie]

so for a newbie like me mao ni aqng nasabtan
-kung mf dapat long term jd aqng goal pra ma-appreciate nko ang tubo s aqng gi-invest
-naay mo-guide nko once mo-invest kog mf then makaget r cla ug commission if magpamember ko
-ang mo-guide sa aq mao pd ang moreport s aq f naunsa n aqng gi-invest
medyo hayag2x n aqng panan-aw aning mf bah but still on the process of learning ghapon..nahan au jd q makagets bah..thanks mga bro...hehehe

1.) Yes, dapat long term imong goals.

2.) If you invest through a broker, yes, the broker gets a commission, 2% lang. However, if you decide to become a broker with IMG, you get the commission. So in the process, it's like you're given a 2% rebate for your investment (kung magbroker ka).

2% in the long run is a good amount. Let me give you an overview:

You invest P5000 to start, you get P100 as a commission. Let's say you invest an additional amount of P1000 every month for a year. After 12 months, you get a total of P240 commission. All in all, that's P340 which you could invest. Assuming you invest P1000 a month consistently for 5 years, that's a total of P1300 worth of commission (P100 from P5000 and P1200 from the P1000 a month for 5 years). Let's just say that your mutual fund's growth rate is 12% and for 10 years, from your P1300 worth of commission adds P5,773.09. What if your mutual fund grows at 20% annually for 10 years? It's an additional P9,581.29 to your investment.

In the long run, being your own broker brings more profit/growth rate. 12% and 20% are just conservative amounts since mutual fund companies performances go as high as 50%. Actually for 2010, the year to date return of FAMI is more than 60% already and for PhilEquity, it is nearly 50%.

3.) Mutual fund companies will give you a financial statement quarterly. You could also check the mutual fund company's performance online through their websites. They regularly update their sites.

But of course, you could also consult your broker. Brokers keep track of the fund performances.

Going back to our example. I'll give some hypothetical figures at 12% and 20%.

Initial investment: P5000
Additional investment every month: P1000

Amount after 10 years (at 12%): P251,384.24
Amount after 10 years (at 20%): P404,763.70

What if you decide to become your own broker?

Amount after 10 years (at 12%): P251,384.24 + P5,773.09 = P257,157.33
Amount after 10 years (at 20%): P404,763.70 + P9,581.29 = P414,344.99

**The 12% and 20% growth rate are just approximations. Mutual fund performances actually does more than that. The good thing is that, it is being compounded, meaning, after your initial amount gained interest, the interest is added to your initial amount and also gained interest.

[Dako Ang Imo...]

1.) Yes, dapat long term imong goals.

2.) If you invest through a broker, yes, the broker gets a commission, 2% lang. However, if you decide to become a broker with IMG, you get the commission. So in the process, it's like you're given a 2% rebate for your investment (kung magbroker ka).

2% in the long run is a good amount. Let me give you an overview:

You invest P5000 to start, you get P100 as a commission. Let's say you invest an additional amount of P1000 every month for a year. After 12 months, you get a total of P120 commission. All in all, that's P220 which you could invest. Assuming you invest P1000 a month consistently for 5 years, that's a total of P700 worth of commission (P100 from P5000 and P600 from the P1000 a month for 5 years). Let's just say that your mutual fund's growth rate is 12% and for 10 years, from your P700 worth of commission adds P2,669.13. What if your mutual fund grows at 20% annually for 10 years? It's an additional P4,357.22 to your investment.

In the long run, being your own broker brings more profit/growth rate. 12% and 20% are just conservative amounts since mutual fund companies performances go as high as 50%. Actually for 2010, the year to date return of FAMI is more than 60% already and for PhilEquity, it is nearly 50%.

3.) Mutual fund companies will give you a financial statement quarterly. You could also check the mutual fund company's performance online through their websites. They regularly update their sites.

But of course, you could also consult your broker. Brokers keep track of the fund performances.

Going back to our example. I'll give you some figures at 12% and 20%.

Initial investment: P5000
Additional investment every month: P1000

Amount after 10 years (at 12%): P251,384.24
Amount after 10 years (at 20%): P404,763.70

What if you decide to become your own broker?

Amount after 10 years (at 12%): P251,384.24 + 2,669.13 = P254,053.37
Amount after 10 years (at 20%): P404,763.70 + 4,357.22 = P409,120.92

**The 12% and 20% growth rate are just approximations. Mutual fund performances actually does more than that. The good thing is that, it is being compounded, meaning, after your initial amount gained interest, the interest is added to your initial amount and also gained interest.

It's so nice....wow...I'm amazed.

[makie]

It's so nice....wow...I'm amazed.

**The calculations were corrected.

[wizard_jamex]

1.) Yes, dapat long term imong goals.

2.) If you invest through a broker, yes, the broker gets a commission, 2% lang. However, if you decide to become a broker with IMG, you get the commission. So in the process, it's like you're given a 2% rebate for your investment (kung magbroker ka).

2% in the long run is a good amount. Let me give you an overview:

You invest P5000 to start, you get P100 as a commission. Let's say you invest an additional amount of P1000 every month for a year. After 12 months, you get a total of P240 commission. All in all, that's P340 which you could invest. Assuming you invest P1000 a month consistently for 5 years, that's a total of P1300 worth of commission (P100 from P5000 and P1200 from the P1000 a month for 5 years). Let's just say that your mutual fund's growth rate is 12% and for 10 years, from your P1300 worth of commission adds P5,773.09. What if your mutual fund grows at 20% annually for 10 years? It's an additional P9,581.29 to your investment.

In the long run, being your own broker brings more profit/growth rate. 12% and 20% are just conservative amounts since mutual fund companies performances go as high as 50%. Actually for 2010, the year to date return of FAMI is more than 60% already and for PhilEquity, it is nearly 50%.

3.) Mutual fund companies will give you a financial statement quarterly. You could also check the mutual fund company's performance online through their websites. They regularly update their sites.

But of course, you could also consult your broker. Brokers keep track of the fund performances.

Going back to our example. I'll give some hypothetical figures at 12% and 20%.

Initial investment: P5000
Additional investment every month: P1000

Amount after 10 years (at 12%): P251,384.24
Amount after 10 years (at 20%): P404,763.70

What if you decide to become your own broker?

Amount after 10 years (at 12%): P251,384.24 + P5,773.09 = P257,157.33
Amount after 10 years (at 20%): P404,763.70 + P9,581.29 = P414,344.99

**The 12% and 20% growth rate are just approximations. Mutual fund performances actually does more than that. The good thing is that, it is being compounded, meaning, after your initial amount gained interest, the interest is added to your initial amount and also gained interest.

Grabeh nimo mo calculate bro! Accurate man. Saludo ko nimo bro. Gitagsa tagsa jud nimo. Ni gamit ko ug Excel para ma hibalo sad ko. Kapoy man calculator gud.