Saturday, September 12, 2009

my investment in mutual funds

Let me start with one investment I have, a mutual fund account. I have always associated investing with people who have tons of money but as you will know, people can invest as little as 5000 pesos. Think about it, if you earn 15000 pesos a month and follow the 10% rule on saving, you will have 6000 pesos in 4 months for your initial investment. In the Philippines, we now have several options. I would recommend you visit the link on the right for a list of mutual funds. Basically, mutual funds pool the investments of small investors like us, hire a professional manager and have access to investments that used to be for corporations or high net worth individuals only. So for as little as 5000 pesos, we now have the option of investing in stocks, bonds or the money markets through mutual funds. I first purchased mutual fund shares last 2004 for 1.12 pesos per share and today it is worth 1.78 pesos per share or a return of 12% a year and to think we are in a global financial crisis!. I chose Sun Life Philippine Equity Fund which invests in stocks of Philippine corporations. You certainly will not get 12% per year on a bank deposit account.

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