Mutual Funds Talk

[makie]

Mga boss, another question, unsaon pag claim sa imohang mf if ever, knock on wood, you will depart from this planet... makuha na imohang hinagoan nga mf sa imohang mga loved ones or tabla nana sya?

That, kinahanglan na nimo iapproach ang MF companies. As long as you have the statements or proofs nga naa kay investment ana nga company, di na matabla but there are requirements to be complied.
For married people, it is highly advisable nga mag open ug joint account for that purposes.

[lodyl]

That, kinahanglan na nimo iapproach ang MF companies. As long as you have the statements or proofs nga naa kay investment ana nga company, di na matabla but there are requirements to be complied.
For married people, it is highly advisable nga mag open ug joint account for that purposes.

Thanks boss makie... for married people bai, what if pananglitan kay si boy naa na mf before the marriage while si girl wala, then inig kasal nila, pwede ra mag joint account? so, pwede ra to ma karga ang amount sa mf ni boy didto sa joint account or kailangan i withdraw ug create a new one para sa joint account?

or let's say both of them have mf accounts before the marraige, pwede na i merge lang ilahang mf accounts before marriage into a new joint account?

[makie]

Thanks boss makie... for married people bai, what if pananglitan kay si boy naa na mf before the marriage while si girl wala, then inig kasal nila, pwede ra mag joint account? so, pwede ra to ma karga ang amount sa mf ni boy didto sa joint account or kailangan i withdraw ug create a new one para sa joint account?

or let's say both of them have mf accounts before the marraige, pwede na i merge lang ilahang mf accounts before marriage into a new joint account?

What I did, I redeemed all my MF accounts when I got married and opened a new one. Para mas makabarato, I timed it when the market was down. Redeem sa taas, then open a joint account if moubos ang NAVPS.

[Aphiemi]

is it too late for me to invest in MF? mga late 30's naman ko.

[makie]

is it too late for me to invest in MF? mga late 30's naman ko.

No. You still have a lot of time to let your investments grow. You can give your investments at least 10 years to grow to start enjoying its growth. If you have kids, you can also start an MF on their behalf.

[Aphiemi]

No. You still have a lot of time to let your investments grow. You can give your investments at least 10 years to grow to start enjoying its growth. If you have kids, you can also start an MF on their behalf.

can you give me an idea of the interest growth I will be earning after 10years?

[makie]

can you give me an idea of the interest growth I will be earning after 10years?

To be honest, I really don't give growth projections. There are things that you can affect the growth of your investment such as:

[1] Economic conditions
[2] Type of mutual fund
[3] Your investment approach

Let me expound on these things

First, economic conditions. Mutual funds are directly affected by the economy, especially the equity or stock funds. If the market conditions or economy is good, mutual funds will do good but if it does bad, the growth of mutual funds are so so as well. Mutual funds is recommended for long term for the sole reason that despite the ups and downs that the market will experience, its overall direction in the long run will always be up. Below is the chart of the Philippine Stock Exchange index during the last 10 years

As we can see, though the market is very volatile, it still ended up on top. During the economic crisis in 2008, it dropped significantly but bounced back up and after several years, it even ended up higher.

We can never tell what will happen within the next 10 years thus we really can't predict the growth of mutual funds.

Second, type of mutual funds. There are generally three types of mutual funds: stock/equity funds, bond funds, balanced funds. If you invest in stock funds, your money will go straight to funds. The risk reward ratio on this one is quite high because it is prone to the volatility of the market. Bond funds on the other hand gives a relatively fixed rate of return but relative to stock/equity funds, if the market does so well, they are being normally left behind. Balanced funds on the other hand is a mix of stock and bond funds and normally, 50% of your investment goes to stocks and the remaining 50% goes to bonds.

So which one is better? It will all depend on your risk tolerance or appetite. If you are looking for huge growth, go for stock funds. Stock/equity funds are ideal for growth. If you are the conservative type and is just looking for capital preservation, go for either bond or balanced fund. Bond funds are ideal for people who are looking for recurring income because bond funds give relatively fixed returns.

The kind of mutual fund that you'll pick will also matter in your return. In stock funds, you face a higher growth potential provided you invest long term and in bond funds, you're certain that your capital is safe. Bond funds are ideal for people who are nearing retirement while stock/equity funds are ideal for young people who may still look at at least 10 years before retiring.

Third, your investment approach. Though this is just a minor consideration, this could still affect your returns. Will you invest monthly? Quarterly? Or on a specific period of time? Or will you time the market (when it goes down) in adding more funds? If you invest regularly on a specific period of time, you may miss out the huge opportunities such as when the market drops. Many people make a lot of money during corrections or when the economy is bad. Corrections are temporary price pullbacks and they affect mutual funds as well. After a correction, the price goes back up.

In 2008, many people invested huge chunks of their money and right now, they are enjoying the benefits. FAMI's price per share mid 2008 was around P1.7 per share and now, it is at P4.35 per share or 155% in more or less 4 years.

Just for price projection's sake, PhilEquity's (stock fund) NAVPS (price per share) in 2002 was only P3.95. Right now, PhilEquity's NAVPS is P25.5. In roughly 10 years, that is a growth of 546%.

If you invested P1M in 2002 at P3.95/share, your P1M is already P6.45M.

**That price projection though doesn't guarantee that PhilEquity will have the same kind of growth in the next 10 years.

I hope this helps.

[cebudoneforyou]

is it too late for me to invest in MF? mga late 30's naman ko.

If you want to earn millions when you retire bro, you need to know the computation pud. how to compute sa future value sa imo money at a given rate of returns. Pero yaw na liboga imo mind invest lang ka karon gud.. if 30 karon u still have 30+ years to invest. dako na na maabot imo money kon sugdan na nimo karon.. If sugod ka karon ari ka sa Equity fund pag invest..

[Aphiemi]

Salamat mga bai(sir makie and sir cebudoneforyou), i will talk to my wife about this later.

[sherieshez]

Mutual funds can be said to be the gem in today's world of investments. This is because it is easy to start investing with one, given its cost and future gains.


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