How to Pick the Right Mutual Fund
Mutual fund investing is becoming popular in the Philippines recently because many Filipinos now are gaining financial education. We can notice it in many coachings and seminars that are being organized all over the country involving financial literacy, 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. In fact, some of the financial teachers and advisers recommend to invest several 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, investment in mutual funds has smaller risk of losing money because the money you put in mutual funds are managed by professional investors. If you invest directly in stocks, you may have limited knowledge about the stocks you will buy and you don’t know what price you should buy it or sell.
One common difficulty of newbie investor is selecting the right mutual fund in the market. It is also my problem when I started to buy mutual fund last January of this year. I don’t have relatives or friends that I can question on how to pick the right mutual fund after all no one of them have the experience in investing in mutual funds.
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However, before I purchased my mutual funds, I make it sure that I thoroughly comprehend what I am dealing with after all it is my money involved. I learned different 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 suggestions you need to know in selecting the best mutual fund are the following:
1. History of Good Performance
You can determine the performance of mutual funds in the Philippines by visiting ICAP website. It is the association of all mutual fund companies in the Philippines.
2. Supervised by Knowledgeable Fund Managers
In the mutual fund prospectus which you can download from their website, you will know who are the fund managers and their competencies in administering the money of your pool.
3. No or Low Sales Load and Retrieval Charge
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. Nevertheless, several mutual fund companies waived this fee so it will be free to buy mutual funds. Most of the companies do not charge redemption cost after six months period.
4. Ease of Adding Funds
For me this is very valuable since I am employed abroad. Every time I want to purchase or beef up my mutual fund investment, I just can carry it online using my Metrobank Direct Access. In the bills payment, I can purchase more shares by choosing my mutual fund just like paying off utility bills.
5. Good Support and Customer Service
A customer-oriented company is quick in responding to its clients petition and queries, they are accommodating and considerate to their needs.
Choosing the right mutual funds suited for you is not easy thing to do. You need an enough facts to determine where to invest your money. In order to select the best mutual funds ready for use in your area, you can remember my suggestion above. It can help you decide which funds to select from.
Bert Tenorio is a personal finance blogger who likes writing on financial management, saving, investing, stocks, mutual funds and make money online. For more informations on Mutual Fund Philippines, you should go Financial Management blog for helpful articles on financial planning, saving, investing and online money making.
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