How to Pick the Best Mutual Fund
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by: GilbertTenorio
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Mutual fund investing is getting popular in the Philippines recently because many Filipinos now are learning financial coaching. We can notice it in many trainings and seminars that are being conducted 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 learn many sides of investing in mutual funds. Actually, some of the financial teachers and advisers recommend to invest several part of your money in mutual funds by reason of it is professionally supervised by experienced investors in stocks, bonds and commodities.
In comparison to investing in stocks directly by yourself, investing 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 inadequate expertise about the stocks you will buy and you don't know what price you should buy it or sell.
One typical difficulty of newbie investor is selecting the right mutual fund in the market. It is also my problem when I begun to buy mutual fund last January of this year. I don't have relatives or friends that I can ask on how to pick the right mutual fund since no one of them have the experience in investing in mutual funds.
Anyhow, before I bought my mutual funds, I make it clear that I carefully comprehend what I am dealing with after all it is my money involved. I learned various kinds of mutual funds that you can purchase in the Philippines. In my research and study, I learned how the procedures and benefits of investing in mutual funds.
Some of the suggestions you need to know in choosing the best mutual fund are the following:
1. Record of Competent Performance
You can learn the accomplishment of mutual funds in the Philippines by visiting ICAP website. It is the association of all mutual fund companies in the Philippines.
2. Managed by Experienced 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 managing the money of your fund.
3. No or Low Sales Load and Retrieval Fee
Every time you purchase or invest in mutual funds, you will be charged a sales load normally 0.5 to 2% of the money you will invest. However, some mutual fund companies waived this cost 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 important since I am employed abroad. Every time I want to buy or beef up my mutual fund investment, I just can carry it online using my Metrobank Direct Access. In the bills payment, I can buy more shares by selecting my mutual fund just like paying utility bills.
5. Great Support and Customer Service
A customer-oriented corporation is quick in responding to its clients request and queries, they are accommodating and helpful to their needs.
Selecting the right mutual funds suited for you is not easy thing to do. You need an enough facts to decide where to invest your money. In order to pick the best mutual funds available in your location, you can remember my advice above. It can help you determine which funds to choose from.
About the Author
Gil Tenorio is a personal finance blogger who likes writing on financial management, saving, investments, stocks, mutual funds and earn money online. To get 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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