·
A mutual fund allows many investors
to pool their money.
·
Professional money managers invest in
a diversified portfolio of securities.
·
They keep funds under constant supervision.
·
They use their knowledge of
securities and changing market conditions.
·
They invest the pooled assets in many
different companies in a variety of industries.
·
As an investor, you own shares in
proportion to your investment.
·
You receive your proportionate share of
earnings on the investment of the funds.
Mutual
Funds are usually classified into:
1.
Bond
Fund (Fixed-income) – funds that invest in government securities.
2.
Stock
/ Equity – funds that invest in a variety of stocks & equities.
3.
Balanced
- Combines profitability of equity investment and the stability of fixed income
instruments.
MUTUAL FUND Concept and Benefits
MUTUAL FUND Concept and Benefits
PROFESSIONAL MANAGEMENT
Many people have neither
the time, the temperament, nor the training to personally manage their
investments. They want the peace of mind that comes from knowing financial and
economic specialists are managing their money.
DIVERSIFICATION
To help reduce the risks
inherent in any investment, a mutual fund carefully selects a diversified
portfolio. This is a fund share represents an interest in a broad range of
securities from various industries.
ASSET ALLOCATION
A process of developing a
diversified portfolio by mixing different asset classes – such as stocks,
bonds, & cash equivalents – in varying proportions to help reduce risk and
maximize potential return.
RISK VS. REWARD
Generally, the greater
the amount of risk assumed by the investor is, the greater the potential
rewards are. Upswings or downturns in market activity impact the value of
investment instruments or account. As a result, investments maybe worth more or
less than their original cost when ultimately redeemed.
INFLATION
Inflation is an increase
of money and credit relative to available goods and services, resulting in a
continuing rise in the general price level. Overtime, inflation reduces the
value & purchasing power of money.
LIQUIDITY
Your money is always
available. No need to find a buyer. The fund is always ready to buy back its
shares from you. Shares can be redeemed and collected within 7days at the
prevailing Net Asset Value Per Share (NAVPS).
MONEY COST AVERAGING
Money-cost averaging
advocates the investment of a constant money amount, regardless of the price of
the investment. Over a period of time, this generally results in a lower
purchase price per investment than if the total purchase was made at one time.
COMPOUNDING
Compounding takes place
when the returns (such as interest, dividends & capital gains) on
investments start earning returns of their own.
REGULATION
Mutual funds are closely regulated by
the Securities and Exchange Commission.
Mutual Fund Money Cost Averaging
Money cost averaging is a strategy to systematically purchase
shares of securities product to offset investment risk in a fluctuating market.
This strategy is very simple. A constant amount is invested
at specific time interval.
As the price of the given product fluctuates, the same money
amount invested will purchase more number of shares when the price is low and
less number of shares when its price is high.
Money cost averaging does not guarantee a profit or prevent
loss in a declining market. It is important to consider your ability to
continue regular purchase through different economic conditions.
TIME, NOT TIMING, IS THE BETTER ALLY TO BUILD
WEALTH FOR YOUR FAMILY.
Be Certain in Uncertain Time
KNOW THE RISK
Let’s do some MATH: Mr. A has P100/month to invest.
In the 3 scenarios, which one ends up doing better?
TIME, NOT TIMING IS THE BETTER ALLY TO HELP BUILD WEALTH FOR
YOUR FAMILY.
BUILDING WEALTH REQUIRES A LOT OF DISCIPLINE AND TIME.
THIS IS NOT A GET-RICH-QUICK-SCHEME
Ask me how..
Contact: Robert C. Nino 09266789548 / rober2.nino@gmail.com
Ask me how..
Contact: Robert C. Nino 09266789548 / rober2.nino@gmail.com
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