Year 2009 and 2010 was indeed a good year for my mutual fund investment.
Before I start, I have the definition of mutual fund from Wikipedia and Investopedia.
What is Mutual Fund?
A mutual fund is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.
An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money mangers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
It’s been 5 years that I was investing regularly on the Philippine Mutual Fund. I say regularly because, I have made it a habit to invest on every 5th day of the Month. For a minimum amount of 1000php, you can buy a share from a mutual fund company. First, I was investing only 1000php/month for 2 years, after realizing that their gains is better compare to a bank deposit savings account, I have increase it to 2000php/month
Most mutual fund company in the Philippines requires only 5000php as initial investment to open an account and, a minimum amount of 1000php for additional investment. The 2 mutual fund company that I was investing right now have this minimum requirement. So after putting a 5000php for opening an account, you can regularly put 1000php every day, week, month, quarter, or year.
Anyway, here’s the returns of my investment for the year 2009 and 2010.
PEMI Philequity Fund Inc. — 2009 (+64.99%) , 2010 (+54.25%)
FAMI First Metro Save and Learn Balanced Fund — 2009 (+45.36%) , 2010 (+61.97%)
Imagined, if I have 100,000php investment on these 2 funds on Jan.1,2009… Do you know how much would it be on Dec.31,2010?
Here’s the quick math of the amount after Dec.31,2010
For the investment in Philequity Fund Inc. – 254,497php
For the investment in First Metro Save and Learn Balanced Fund – 235439php
In 2 years time your money was doubled..
I was not an employee of these 2 Funds.
I just want to encourage every OFW to invest in the Philippines. The money you invest will grow together with our country.
You can go to this site to know more about the mutual fund companies in the Philipines: