A mutual fund is an investment company that pools money from different individuals or institution.

It is professionally managed by a fund manager. They invest the pooled assets in many different financial securities & companies in a variety of industries.

As an investor, you own shares in proportion to your investment.

You receive your proportionate share of any earnings on the investment of the funds.

1. PROFESSIONAL MANAGEMENT

May Full-time investment Expert na tumututok sa investments natin. Maliban sa kumain at matulog, trabaho niyang bantayan ang stock market o bond market.

So kahit busy tayo sa ating trabaho, careers, sa ating negosyo, o tayo’y nasa bakasyon, may Peace of Mind tayo na 'di hamak na mas magaling sa atin ang nagbabantay at nag-momonitor ng investments natin.

2. POTENTIALLY HIGHER RETURNS

Ang P1,000 ko, o P100,000 mo ay "naka-angkas" sa bilyong pera ng mutual fund company. Dahil dito, nakaka-access ang pera natin sa mga potentially higher yielding investments na available lang sa mga big-time investors.

Sinisiguro din ng fund manager that the mutual fund generates the best possible returns for the given level of risk of the mutual fund.

3. DIVERSIFICATION

A mutual fund company invests in 20 to 30 different companies in the stock market.

Kung direct stock market ka mag-iinvest, very limited ang mabibili ng P10,000 mo, or even 100,000.

Pero sa mutual fund, ang P1,000 mo ay automatic nakakalat sa iba't ibang kumpanya sa stock market. Malugi man ang dalawa, break-even ang lima, lumipad ang sampu, PANALO ka pa din!

4. LIQUIDITY

You can sell your shares ANYTIME. Within 3 – 7 banking days lang, makukuha mo na as Cash.

5. LOW MINIMUM INVESTMENT REQUIREMENT

For as low as P1,000, you can open a mutual fund account. Ibig sabihin, kahit minimum wage earner ay pwede na maging Investor.

6. SAFETY

Ang mutual funds ay highly regulated ng Securities and Exchange Commission (SEC). They are also regularly audited by an independent auditor. The assets of the mutual fund are held by a third-party custodian bank.