Latest Report/Update of Mutual Funds.

[makie]

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mga bro i just read from pinoymoneytalk forums about MF.marami kang matutunan talaga dun.

your money will not grow in compounding way....the very important figures are your no. of shares and the navps. kahit ilang % pa ang tinaas per year your no. of shares will always be the same.but if your investing evry month offcourse addition share yun. to see how much profit you have, you only need to multiply

no. of shares x current navps

so after 5 yrs at tuloy2x na 30% ang taas ng navps. bonga2x ang pera mo when you redeem it. same with the figures above.

pero kung yung navps hinde nagbago after 5 yrs.hehe!...just be patient invest long term.

paki correct me kung merong mali sa aking pagkakaintinde sa mf....

Actually, you are right, investing in mutual funds are all about the price of shares and the number of shares, the more shares you have and at a cheaper price you get, the better the possible returns.

The illustration that I gave was to give a clear and simple picture about how mutual funds work.

In an ideal scenario, your money will grow in a compounding way provided that you will not redeem sooner or later. However, in reality, it doesn't work that way because of the fluctuations, the NAVPS could either go all the way up or down anytime but for illustration's sake (keeping the NAVPS and rate of return fixed to make it simple), we could compute it in a compounding way.

A much more realistic approach in computing returns (but still isn't that accurate) is to compute the growth/loss every month based on the rate of return. It's still isn't accurate because mutual funds are cost averaged, meaning the return will be based on the average of the gains and losses over a period of time.

The simplest way to compute for the gain is to invest and not add any amount. In that way, you could simply multiply the amount invested with the rate of return over a period of time and add the initial investment and the rate of return. It basically follows the simple interest formula. But since in reality people are investing either in a fixed interval or anytime and the rate of returns fluctuates, it makes calculations complicated if we will base it on the rate of return.

The simplest way to compute for the growth is to multiply the number of shares to the current NAVPS and subtract the total investment (initial investment + additional investments).

[lorenzoleo]

mga bro i just read from pinoymoneytalk forums about MF.marami kang matutunan talaga dun.

your money will not grow in compounding way....the very important figures are your no. of shares and the navps. kahit ilang % pa ang tinaas per year your no. of shares will always be the same.but if your investing evry month offcourse addition share yun. to see how much profit you have, you only need to multiply

no. of shares x current navps

so after 5 yrs at tuloy2x na 30% ang taas ng navps. bonga2x ang pera mo when you redeem it. same with the figures above.

pero kung yung navps hinde nagbago after 5 yrs.hehe!...just be patient invest long term.

paki correct me kung merong mali sa aking pagkakaintinde sa mf....

Tama ang sinabi, moh, pero yung compouding effect hindi kagaya nasa bank, ang compouding effect niya ang yung sa value ng navps, investing in MF is CAPITAL GAINS, not LENDING business. Example PhilEquity 1995 Php1/share, ngayon, ay Php 20/share na, di ba 20 times yun ang na invest mo kung nag invest ka noong 1995, pwdi mu makuha yung compouding interest rate niya using these formula

F=P(i+1)^n

where F = Future Amount
P = Principal Amount
n= number of years
i = compouding interest/year

So unknown variable mo ai, yung i, find for i. Known values ai, F,P, and n. Happy Algebra. T_T!

[wizard_jamex]

Latest update of Mutual Funds as of November 24, 2010 (Wednesday)



Source : Investment Company Association of the Philippines

[lorenzoleo]

So how will the average growth % impact to my money (example I invested 3 yrs or 5 yrs. ago)?

How about if I invested 10,000 then every month added 2,000? How will the average growth % give yield to my investment?

Appreciate if you'll illustrate thru sample figures.

Thanks a lot.

Try to look at this sample, This could answer your questions. T_T!
Know the risk in Mutual Fund Investing. This is a sample for Peso/Dollar Cost Averaging.

[wizard_jamex]

Tax Identification Number (TIN) is one of the requirements when you fill up application form of any Mutual Funds Companies like FAMI, PAMI, United Funds, Philequity,etc in accordance/required by RA 9160 or Anti-Money laundering Act of 2001.

[Metz]

Tax Identification Number (TIN) is one of the requirements when you fill up application form of any Mutual Funds Companies like FAMI, PAMI, United Funds, Philequity,etc in accordance/required by RA 9160 or Anti-Money laundering Act of 2001.

Saon nako pag limpyo sa ako millions ani? :P

[wizard_jamex]

Saon nako pag limpyo sa ako millions ani? :P

Find a way, bro. =)

[wizard_jamex]

Latest update of Mutual Funds as of November 25, 2010 (Thursday)



Source: Investment Company Association of the Philippines

[lorenzoleo]

MF is really very good, no tax upon redemption. This is one vehicles where the wealthy people are hiding their wealth. T_T!
Imagine in the future all your income came from CAPITAL GAINS, Hehehe! MF, no tax, capital gain tax is very minimal. Hehehe!

[lorenzoleo]

Saon nako pag limpyo sa ako millions ani? :P

MF jud bai, para limpyo inig redeem. T_T!!!!!!!!!!!!!!! No tax!!!!





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