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Investment Basics


Know Yourself.

Here's a market mantra that every investor can profit from: Know Yourself. Before you start investing, you should first know what type of investing personality you have. Do you like to speculate? Do you take time to consider the facts? Do you like playing it safe? Each person falls under 1 of the 3 types of investors: The Risk Taker, the Risk Neutral, and the Risk Averse, with each having its own level of risk tolerance. Realizing which category you belong to is the first step to making wise investments.

 

Know Your Options.

As each person is unique, so are mutual funds. A Fixed Income Fund is a secure, long-term investment that preserves your capital the best. An Equity Fund is more rewarding than a Fixed Income Fund but it also carries more risk. A Balanced Fund is a cross between equity and fixed funds. For investing beginners, a balanced fund is a good place to start. If you need assistance in recognizing your investing personality and which mutual fund is right for you, MFMCP is here to help.

 

Knowing the Market

At the Mutual Fund Management Company of the Philippines, we know that it's all about knowing when to invest and what to invest in. That's why we have people with various specializations in the finance industry dedicated to research to bring you up-to-the-minute market information to help you make the right informed decisions.

 

FAQ's


A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or bonds to buy). By pooling money together in a mutual fund, investors can purchase stocks with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification. BACK TO TOP

2.What are the benefits of investing in a mutual fund?

For the average investor, mutual funds are a convenient and affordable way of gaining access to investments that would otherwise be available only to large institutions or the wealthy. These investments are selected by experienced professionals who devote themselves exclusively to tracking the markets, analyzing investments, and implementing a consistent investment strategy.

  • Diversification - Diversification is the idea of spreading out your money across many different types of investments. When one investment is down another might be up. Choosing to diversify your investment holdings reduces your risk tremendously.
  • Professionally managed - For the individual investor, mutual funds provide the benefit of having someone else manage your investments, take care of recordkeeping for your account, and diversify your pesos over many different stocks that may not be available or affordable to you otherwise.
  • Low investment amount - Today, minimum investment requirements on many funds are low enough that even the smallest investor can get started in mutual funds.
  • Easy access to your funds  - You can liquidate your investment anytime you want to. However you will need to be aware of the value of your investment at the time you liquidate in order to know whether the value increased or decreased. BACK TO TOP

3. What are the different types of mutual funds

  • Equity Funds invest shares in common stock
  • Fixed Income Funds invest in government or corporate securities which offered fixed rates of return
  • Balanced Funds invest in a combination of both stocks and bonds BACK TO TOP

4. Are mutual fund guaranteed?

  • Since mutual funds qualify as securities and not deposits, they are not guaranteed, their values change frequently and past performance may not be repeated.
  • However, fund managers and the funds themselves operate under strict securities regulations. For example, mutual funds are owned by the shareholders and are separate legal entities from the companies that operate them. BACK TO TOP

5. What is the right fund for me?

Once you've identified your goals and the types of funds available to help you reach them, it's time to identify specific funds that might be suitable for you and learn more about them before you make your investment.

  • Visit the Fund Selector to review funds by investment category and compare their objectives, performance, and expenses. Also review the fund's minimum investment requirement to determine if you can meet the initial requirement needed to open an account.
  • Read the prospectus carefully before you invest. It's important that you understand how the fund operates and how its policies, fees or philosophies might affect your investment over time. BACK TO TOP

6. Are there any fees or charges when investing in any of MFMCP's funds?

Kabuhayan Mutual Fund and ATR Kim Eng Equity Opportunity Fund

Entry or Sales Fee

Exit or Redemption Fee

2.24% of  amounts ranging from P5,000-P50,000

2.24% of Investment Amount to be withdrawn for shares held  less than a year

1.68% of  amounts over P50,000-P100,000

1.12% of Investment Amount to be withdrawn for shares held  more than a year but less than two years

1.12% of amounts over P100,000

 

 

ATR Kim Eng Fixed Income Fund

Entry or Sales Fee

Exit or Redemption Fee

1.12% of any investment amount

0.5% of Investment Amount to be withdrawn for shares held less than a year

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7. How can I track the performance of the fund? What is a NAV?

Treat a mutual fund's net asset value as its price per share. If you see a fund NAV as P100, then you can expect to buy the fund for P100 or sell it for P100. Since mutual funds hold a number of stocks, the net asset value must be calculated at the end of the day on a daily basis.

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is calculated as follows:

NAV=Market value of the fund's investments+Receivables+Accrued Income- Liabilities-Accrued Expenses/Number of Outstanding Shares BACK TO TOP

8. Can I withdraw my money anytime?

Yes, investors have immediate access to their money by selling shares at the fund's net asset value, which is determined at the end of each trading day. BACK TO TOP

9. Who can I call about my account?

  • Investors Relations Officers can be reached on Mondays to Fridays, 9 am tp 5 pm at telephone numbers +632-896-3734, 896-3750, 890-3827 and 848-1381. IRD can also be reached outside of working hours and on weekends via SMS at mobile number +63-917-525-2558 and via e-mail at ird@mutualfund.com.ph
  • The IRD can also assist in providing practical analysis of the current political and economic situation in addition to the fundamentals of various investments of the fund; quality basic advice and timing on investment; efficient and precise and speedy confirmation and documentation of investment or redemption; efficient settlement and reporting of accounts and lastly, to ensure the confidentiality of all investor accounts and dealings with MFMCP.
  • Click below to view to location maps of our offices

 

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