Information on Time Deposit

[bishop__]

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This is a nice thread, can anyone elaborate further about Mutual Funds? What's the minimum amount that we can invest in mutual funds? What are these other investment vehicles? Do banks offer this Mutual Fund deposits/investment?

thanks

[darkcrux]

@bishop_,

here are some details...

What's the minimum amount we can invest?
- To start, minimum of Php. 5000. then you can add more investments later at a minimum of Php. 1000

What are these other investment vehicles?
- Different kinds of mutual funds, stocks trading, businesses, real estate, etc.. all kinds of asset accumulation.. these are investment vehicles.

Do banks offer Mutual Funds?
- Rarely. They emphasize mostly on their time deposit since they themselves invest part of your money saved in mutual funds and other vehicles.

hope this helps.

[bishop__]

What are the risk involved on investing in Mutual Funds?

[the Messenger]

Mutual funds are not PDIC insured? I'm no expert but this is what I heard.

[666satan]

I think nice ang Mutual fund...pero risk gyd siya..adto lang sa mga trusted financial institution...like sa ayala..

[brownprose]

Mutual funds are not PDIC insured? I'm no expert but this is what I heard.

Nope they are not insured. Mutual funds are investments by nature unlike deposits. Mutual funds are better than time deposits for their yield or what they call NAV (net asset value) or per-share value that is prorated against the amount of money you invested. They are determined everyday and a report is generated everyday by the mutual fund company for investors to know the worth of their investment on a daily basis.

Basically, a mutual fund is "pooled money." Meaning you and others that invest in it share the risks and the returns of whatever you invested. Murag joint venture but formally referred to as "collective investments." The pooled sum is usually invested in money instruments (both long and short terms) like bonds and securities, etc.

But is it safe? MFs are generally safe (although not 100% safe like any investment) because fund managers make it a point to spread the investment in both low and medium risk instruments. So in an MF investment, you don't get burned overnight. You can also pull out anytime if you think you're not earning enough.

Generally, MF is one of the best and safest investments that you can get to than purely deposit alone. However, don't forget that rule of thumb to "never put all your eggs in one basket."

[reachingout]

pwede ra baya me maka setdown ninyo over over tha table discussion regarding mutual fund..kay para gyud masabtan sa uban na wala pa kaayo Idea...ang ako or ang amo puepose is just to inform na bisan gamay ato money pwede nato mabutang ug higher interest...pm lang willing kaayo ko

[honey2723]

I think nice ang Mutual fund...pero risk gyd siya..adto lang sa mga trusted financial institution...like sa ayala..

risk is associated with lack of information. pero if you learn more about a certain concept, in this case mutual fund, (i.e. you check out how it works, what are involved when investing in mutual funds, unsay purpose sa fund managers, UNSAY PURPOSE NIMO AS AN INVESTOR, whether you're in it for the long-run or short-term lang, naa ba kay goal for putting your money there, etc.) then the risk can be slowly taken out of the picture.

@666satan, i'm not totally directing my message to you, ha... this is for everybody...

what everyone has to remember is that all endeavors have their "risk". let's say, mag-put up ka ug business, kay matud pa sa uban, they would rather loose their money their way than invest it in "risky" investments, then you are also putting up your money at risk, kay mostly sa mag-start up ug business, out of passion magtukod ug business, mostly dili nila studyhan ang idea. so, in the end, nawala gihapon ang money. same goes for those who got burned in "investing" their money in things that they didn't study at all. Ni-diretso ra ug invest without knowing the ins-and-outs of the investment vehicle...

Going back to mutual fund, the advantage over it is that fund managers supposedly knows what they need to do with the investors pooled money (this is one reason why you have to do your part, check the background of the people involved, the track record. the longer track record, the better.) Compared to start-up "would-be" businessmen, if dili mag-himo ug study, then risky lang gihapon ang gibuhat...

I'm not saying nga dli nalang jud ta mag-start-up ug business, what I'm saying is to DIVERSIFY your investments, kung mag-business ka, learn to invest pud in other investment vehicles wherein dili naka mag-hago ug trabaho.. You're money is working for you na. And after several years, you can check out which of your investments are giving you higher returns based on your investment.

So mga kapwa Pinoy and specifically istoryans, let us learn to open our minds to different investment vehicles in the market. Let us educate ourselves coz education is one powerful tool in alleviating ourselves from poverty. A word of caution though, opening our minds doesn't mean nga pataka nalang pud ta ug dasmag or sud sa mga different investments... We must do our part, study them and make an educated decision.


Happy learning...

[darkcrux]

What brownprose & honey2723 said are true. a MF is one of the safest investment vehicles today but not totally risk free. Gotta educate ourselves. In mutual funds, it's less risky if you know what it is and know how to invest in it "PROPERLY".

[the Messenger]

Thanks for the info.

I have more questions:

1. Which specific mutual funds firms do you recommend in Cebu?
2. What documents are normally required upon application?

A representative from MAA Mutual Life once gave me her calling card, but I lost it. Although I can easily view MAA's website, I want to hear what Istoryans have to say/ recommend.