Some of the reasons why it's fun with the Mutual Funds

 Picture says it all! Please take note that this is how the Mutual Funds in the Philippines is specially in the TAX FREE area! :)

*Depends on market performance

Time is gold!

Have a successful journey!

God bless you!

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Why invest in the mutual fund?

Investing differs in style, there are people who wants to invest directly in the stock market and by all means, please go ahead, it is also a good way to grow and build wealth!

I want to share my investing style (and mostly of my friends). My investing style is through the mutual fund, let me give you some advantages of the mutual fund and how it works.

See this picture above? Let me explain it a little. Year 1 to 36 shows how long we invest the money. Traditionally, most financial institutions give at least 4% a year in return while the mutual funds, at least 12% a year in return. (Depends on market movements)

Now you have 100, 000, if you invest it on 4% a year, after 36 years, it will grow to 400,000! On the other hand, if your 100, 000 goes to the Mutual Funds earning at least 12% a year, after 36 years, it becomes 6.4 million!

Okay, so there are 2 ways to earn the 6M. First, you can work for it, so if you earn 300, 000 a year, you have to save that for 20 years! That would mean no eating, no taking a bath, no fare, nothing!

The other way to earn the 6 million is either to invest 100k at 12% or invest 1, 000 per month at 12 % and after 36 years, you still get 6 million. This my friends is the power of compounding interest. How would you like to earn the 6 million?

Friends, this is how some of our financial institution works, they take your money as your savings, they give you 1% - 4% a year but they invest your money to somewhere higher. You get 400, 000 and they get 6 million!

Start investing and earning smartly now! How? Invest in somewhere higher, I invite you to invest in the mutual funds, you can start investing with 5000 Pesos and with that, you journey to reaching your financial goals begin!

Have a successful journey!

God bless you!

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What is a Mutual Fund?

What exactly is a mutual fund? Many have heard about this but what exactly is it? I too had this question long ago so let me share what I learned.

A mutual fund, is a pool of funds from different investors. Investor X invest 100,000, investor Y invest 50,000, investor Z invest 5,000. This is combined and now we have a pool of funds otherwise called as the mutual fund.

With this pool of funds, these will be invested. (stock market, bonds, etc.)

Mutual fund investing are done through mutual fund companies and these mutual fund companies have money being invested as well. Individuals can invest in the mutual funds with 5000 Pesos as starting. (This is the usual opening of a mutual fund account.)

So for example, Company X has 1 million pesos being invested in the stock market, now you, a saver and an aspiring investor would like to join in, how, through the mutual fund. You now invest 5000 Pesos with Company X, Company X then will add your money to their 1 million Pesos. So it’s now 1 million and 5 thousand pesos being invested.

If Company X earns 20%, they earn 20% from their 1 million and you will get 20% from your 5000! That’s it!

Whatever they earn, you will earn too! The good thing about this is that you do not need to do anything, in the mutual fund company, there are tons of expert managing your money, so they will do all the complicated things, the result, this turn to passive income for you. In exchange, a little fee is applied when you invest in the mutual fund, this is around 2% to 3.5%. (e.g 5000 Pesos x 2%)

Sounds good? Remember, this is an investment so returns may vary, if the market does good, you will earn good, if market is not good, you will receive the same.

Scary? No, unless you have proper Financial Education.

You can learn more about this through the IMG-Wealth Academy and not only you will learn about mutual funds and investments, you will learn how to manage your money!

Series 1 is absolutely free! If you are in Cebu, you can catch Wealth Academy in 2nd floor, JY Square, Lahug. Every Wednesday and Saturday, 6:30PM.

If you are in Manila, you can catch this at 3rd Floor King's Court 1 Building, Pasong Tamo cor Dela Rosa St. Makati. Every Wednesday and Saturday, 6:30PM.

I hope I have simplified this for you and I hope this will help you in your investing!

Cheers!

Picture is not mine. All credit goes to http://www.topnews.in/files/AUM-MF-Industry.jpg.

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Mutual Funds or buy Stocks directly? Try Financial Education!

It’s not an argument which is best, after all, these 2 instruments will help us increase our wealth. Where does the difference come? Pretty simple, if you are the type of person who have all the time in the world to monitor the stocks movement, that’s from 9am to 3pm, Monday to Friday, have all the experience in the stock market, has the right information which company is good to buy or not, have all the needed skills, then by all means, go right ahead and invest directly in the stock market.

Now you ask yourself, should I invest in the Mutual Fund? If you are the type of person who is busy doing something else like work, has no experience in the stock market and do not have the right information on which company to buy or not, then go with the mutual fund. In the Mutual Fund, there is an expert who handles your money, this expert knows very well what to do with the money, has the right skills and is dedicated to let the money grow.

Simply put it this way, these 2 instruments will help you achieve your financial goal. Think of it as an Airplane. Investing in the stock market directly makes you the pilot of the airplane, you must know how to fly it, you must lift off and safely land to reach your goal, you’re driving it by yourself. Now the Mutual Fund makes you the passenger in the Airplane, you just sit tight and relax until you reach your destination while the pilot flies the plane for you. Still both of you reaches the same destination.

So which is best? Both of them, it really depends on your investing style but the most important thing before investing is being financially educated. I have friends who just invest without knowing how it works, the result, money was not growing, worse, they lost their money.

There are some basic questions that investors should know like,  do you know what to do when the market soars high? What about when the market crashes and charts go red? When is a good time to buy or sell? How long should I keep my investments? These question will arise for sure and it is always good to prepare yourself by looking for a venue where you could be taught this.

There are venues which offers this but please be careful as scams are not far from this. On my end, I learned this in Wealth Academy. Wealth Academy taught me everything that an investor should know, it taught me so much, it made me an Associate Financial Planner. (My certification has just expired, it’s just a matter of renewing it now.)

Wealth Academy is the educational arm of International Marketing Group or IMG and here is a plus, the first series is free!

Just like going to war, you need to be equipped, trained and disciplined. Investing is the same way, with proper training and education, you can’t lose!

Cheers!

All credit goes to LeniProduction for the picture above from http://browse.deviantart.com/art/Question-mark-174773523. I do not own the picture.

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