How to Pick the Right Mutual Fund
Mutual fund investment is getting popular in the Philippines currently because many Filipinos now are gaining financial education. We can notice it in many coachings and seminars that are being conducted around the country involving financial education, business ideas, self-motivation and many more.
I have been investing in mutual funds only this year and I begun to acquire information of many sides of investing in mutual funds. Actually, some of the financial gurus and advisers recommend to invest some part of your money in mutual funds because it is professionally supervised by experienced investors in stocks, bonds and commodities.
In comparison to investing in stocks personally by yourself, investing in mutual funds has less danger of losing money because the money you invest in mutual funds are governed by professional investors. If you invest personally in stocks, you may have inadequate expertise about the stocks you will purchase and you don’t know what price you should buy it or sell.
One common difficulty of newbie investor is selecting the best mutual fund in the market. It is also my problem when I begun to purchase mutual fund last January of this year. I don’t have kin or friends that I can question on how to pick the best mutual fund since no one of them have the knowledge in investing in mutual funds.
Anyhow, before I purchased my mutual funds, I make it sure that I carefully comprehend what I am dealing with after all it is my money involved. I realized various kinds of mutual funds that you can buy in the Philippines. In my research and analysis, I learned how the procedures and benefits of investing in mutual funds.
Some of the pointers you need to know in choosing the best mutual fund are the following:
1. Record of Competent Performance
You can determine the performance of mutual funds in the Philippines by going to ICAP website. It is the alliance of all mutual fund companies in the Philippines.
2. Supervised by Experienced Fund Managers
In the mutual fund prospectus which you can get from their website, you will know who are the fund managers and their competencies in administering the money of your fund.
3. No or Low Sales Load and Redemption Fee
Every time you buy or invest in mutual funds, you will be charged a sales obligation usually 0.5 to 2% of the money you will invest. However, some mutual fund companies waived this fee so it will be free to purchase mutual funds. Most of the companies do not charge redemption cost after six months time.
4. Ease of Adding Funds
For me this is very valuable since I am working abroad. Every time I want to purchase or add my mutual fund investment, I just can carry it online using my Metrobank Direct Access. In the bills payment, I can buy more shares by selecting my mutual fund just like paying utility bills.
5. Good Support and Customer Aid
A customer-oriented corporation is fast in responding to its clientele petition and queries, they are accommodating and helpful to their needs.
Selecting the best mutual funds appropriate for you is not easy thing to do. You ought to have an enough information to determine where to entrust your wealth. In order to select the top mutual funds available in your location, you can remember my suggestion above. It can help you determine which funds to select from.
Gil Tenorio is a personal finance blogger who likes writing on financial management, saving, investments, stocks, mutual funds and make money online. For more details on Mutual Fund Philippines, you may go Financial Management blog for helpful articles on financial management, saving, investments and online money making.
Processing your request, Please wait....
