mutual fund

**d'flash** · December 12th, 2012 02:29 PM

Originally Posted by yebo

ako meron. mutual funds are 3 types. there is the equity fund where the funds are invested purely in stocks. bond funds are invested in bonds and government securities. balanced funds are invested both in stocks and bonds. also depending on your preference the fund manager can invest your funds in either high risk (emerging markets) or low risk (blue chips) stocks. i have both the balanced fund and equity fund with sunlife.

historically sunlife has returned as high as 60% per year on their balanced fund. the top performer last year among the big players was bpi mutual, which returned 65%. there is also philam mutual which i think was the top performer 3 years ago, returning as high as 67% if my memory serves me right. there are other smaller mutual fund companies in the philippines that have had higher returns, but the risks are greater.

startting investment for most funds is P10,000, and minimum additional is P5,000. you can add as many times as you want. another thing you need to consider is if you will keep your money invested there for a long time or short time only. since you are only 24 years old you might elect to keep your money there for a long time, and therefore i suggest you have a "back-ended" account. a back-ended account will have the management fees taken out when you withdraw from the fund. most have will have decreasing management fees, with the fees going to zero after 5 years. for a front-ended account the fees are charged when you invest the money. the percentage is less but then you pay up front, whereas on the back-ended account you don't pay anything if you keep it for 5 years or so.

you can withdraw your money anytime. it takes them about 3 working days to deposit it in your bank account.

are there any credit checking to my work? when im going to apply for this? will my tenure on our company can affect this? so far, are you encountering any problem with sunlife? AFAIK sunlife were one of the biggest player here in terms on investment. please dont get me wrong, may i know how's your income for MFs?

**d'flash** · December 12th, 2012 02:34 PM

Originally Posted by yebo

for those funds with insurance, i used to have one of those before (sun solution 5). you are actually paying for insurance premiums and investing in mutual funds at the same time. THE YIELDS ARE SMALLER BECAUSE YOU ARE ALSO PAYING FOR INSURANCE PREMIUMS! if you are single and do not need insurance then stay away from this. even if you have already paid all the premiums you will still be earning less since the insurance eats up most of the yields of your investment. these funds (example, sunlife and manu life insurance) only yield around 8-13% per year, compared to the 60+% that a mutual fund with Sunlife, BPI or Philam will yield.

remember that insurance is only for those who need it. if you do not need insurance then why pay?

strongly agree, 60+% PA that's really great, im still single. my choices are Sunlife mutual fund, BPI equity value fund or PNB high dividend fund,

**yebo** · December 12th, 2012 02:49 PM

they do not need to check your work. you just need to fill up a form and also to fill up this questionaire to see what kind of investor and what type of risk you can afford. then they do advice you if you are investing correctly or not according to your answers to the questionaire.

as per your tenure in work, it does not matter as it does not affect your investment. as i said earlier the minimum entry amount is P10k. after that you can add to your fund with a minimum additional of P5k each time.

no problems so far. i was able to withdraw money when i needed it, transfer from 1 fund to another (mutual to bonds) when the stocks were low and the bonds were high (but with the back-end fees being charged of course since my investment was less than 5 years old at that time), then converted them to equity when the stock market was recovering. yields for me is an average of 35-40% over the 8 years that i have had the fund, and that is with the stock market going up and down.

3 years ago the navps was only 1.5 or something (stocks were down). now the navps is 3.40 for the balanced and 3.56 for the equity. do the math, (3.4-1.5)/3 years = 63.33% average per year for the balanced fund for the last 3 years. or 126% increase from 2009 to 2012, more than double in just 3 years.

**d'flash** · December 12th, 2012 03:00 PM

thank you mga boss, yebo qwerty and 1d4LV

**d'flash** · December 12th, 2012 03:01 PM

BPI EQUITY VALUE FUND

im currently inquiring with BPI.

**1D4LV** · December 12th, 2012 03:40 PM

Originally Posted by yebo

for those funds with insurance, i used to have one of those before (sun solution 5). you are actually paying for insurance premiums and investing in mutual funds at the same time. THE YIELDS ARE SMALLER BECAUSE YOU ARE ALSO PAYING FOR INSURANCE PREMIUMS! if you are single and do not need insurance then stay away from this. even if you have already paid all the premiums you will still be earning less since the insurance eats up most of the yields of your investment. these funds (example, sunlife and manu life insurance) only yield around 8-13% per year, compared to the 60+% that a mutual fund with Sunlife, BPI or Philam will yield.

remember that insurance is only for those who need it. if you do not need insurance then why pay?

bro yebo, i may have to disagree politely on the opinion that if you are single, you do not need life insurance.
life insurance is also for the protection of your income that you may lose if you get incapacitated or prematurely die. the latter is specially true if you are the breadwinner.

sorry dude... just voicing out my opinion.... not to flame.

i've seen young single people who just went to their insurance coverage when they got sick and had families whose single working child died.

**CVT** · December 12th, 2012 07:37 PM

For those who'd like to go into this,- in one of my 'limited' engagements with mutual funds,- between Philamfund and Sunlife,- mas malaki ang return ng equity fund ng Philamfund, at mas malaki ang return ng balanced fund ng Sunlife...

Now, if the market slips,- then you are with it... No surprises here, please.

17.6K:santa:

**d'flash** · December 12th, 2012 07:59 PM

Originally Posted by CVT

For those who'd like to go into this,- in one of my 'limited' engagements with mutual funds,- between Philamfund and Sunlife,- mas malaki ang return ng equity fund ng Philamfund, at mas malaki ang return ng balanced fund ng Sunlife...

Now, if the market slips,- then you are with it... No surprises here, please.

17.6K:santa:

currently i'm choosing between PNB and BPI equity value fund. i'll consider philamfund also, how will i know if the fund manager is good?

and i will start at 40k, and if it turns well, ill add 10 after 2 months.

**yebo** · December 12th, 2012 09:13 PM

Originally Posted by CVT

Now, if the market slips,- then you are with it... No surprises here, please.

17.6K:santa:

that is why you also have to monitor the stocks and bonds market. don't just rely on the fund managers as they can not park your money in another fund type even if they wanted to. if you need to move it, or even cash it in and park it in a time deposit account, you will need to do it yourself.

i lost close to $40k in 2009 from my US mutual fund, just because i forgot my damned PIN and it took me a month to get a new one. kaya local na lang ako ngayon kahit na tumaas pa ang US stocks market. at least e madali lang puntahan mag-withdraw in case sh!t happens again.

**av8or5** · December 12th, 2012 10:04 PM

Originally Posted by 1D4LV

bro yebo, i may have to disagree politely on the opinion that if you are single, you do not need life insurance.
life insurance is also for the protection of your income that you may lose if you get incapacitated or prematurely die. the latter is specially true if you are the breadwinner.

sorry dude... just voicing out my opinion.... not to flame.

i've seen young single people who just went to their insurance coverage when they got sick and had families whose single working child died.

IMO: i have to side Mr. Yebo...sabi nga ninya..if your young and dont need insurance..then stay away from MF with insurance..kasi its true...the return won't be as high kasi nga you pay for the premium of the insurance.

for the Thread starter...he will get into MF because he wants to grow his extra money..so...ang goal is to increase his capital/net worth...at a young age...and be it MF is for his extra funds...go for MF without insurance..i bet naman his regular work covers life insurance.....

This was also taught sa business school I went to..why invest in life insurance at a young age when you dont have dependents....its a waste of money..use that money to invest in other ways to increase net worth...for me..if single ka...life insurance will just be given to your..lets say parents..if okay naman parents mo financially...then..no need for that..just use the money wisely and invest it where you have a potential for more growth..

if you did well with your investments..then buy a separate insurance.

again..its my opinion lang.