Tuesday, October 22, 2013

How to open a Mutual Fund account?

A lot of my friends ask me how could they invest in the Mutual Fund. How do we put our money in the Mutual Fund?

Quite frankly, I had these questions too! I was so excited but I thought that "Hey, with all these stocks and what not, I m pretty sure that investing is going to be difficult." WRONG!

Mutual fund investing is as simple as ABC. Here are some steps to help you open a mutual fund account:

1. Just like opening any savings account in the bank, you fill up forms and show some identification plus the cash. It is the same with opening a mutual fund account. All you need to do is fill up so forms, show some identification and VOILA, you're good to go!

2. Just like opening any savings account as well, there is an initial deposit. When you open a mutual fund account, all you need is 5000 Pesos and with that, you're off buying your first few shares! Please note that most mutual fund companies offer 5000 Pesos as initial investment.

3. When adding additional investments, the minimum amount is 1000 Pesos. All you need to do is fill up some forms still. :)

Since the mutual fund takes away the stress from the investor by letting experts manage it, there is a little, teeny weeny fee every time you invest in a form of percentage. It often ranges from 2% - 3.5%. Consider it as a fee for your funds being managed by experts.

Well, there you go. Simple and easy, isn't it? So are you ready to invest in the mutual funds?

God bless you!

Have a successful journey!

Picture is not mine, it belongs to EndlessSecrets from http://www.deviantart.com/art/Questions-268221719