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Investing in Mutual Fund in the Philippines: Newbies Welcome!

Are you interested in investing because you finished reading the Investing Quotes already?

(Read: 9 Investing Quotes that Inspire You to Act Now)

Want to invest in mutual funds in the Philippines but you don’t even have any idea of what a mutual fund really is?

You’ve come to the right place!

Investing in Mutual Fund in the Philippines
Investing is like putting your money in a nest & waiting for it to grow.

In this blog post, we won’t be talking about complicated finance jargon or confusing points of references. We’ll keep this simple, sweet and semi-short – I know you’re busy people, right?

Let’s start.

What is a Mutual Fund?

Mutual – same
Fund – collection of money

A mutual fund is a type of investment that collects & combines money from different investors with the same investment goals.

These collected money are handled by a professional fund manager who invests according to the investors’ compatibility – whether in stocks, money market, bonds and other securities.

Investing in Mutual Fund in the Philippines
Yes, mutual fund investing CAN make you a millionaire – in time.

How can you earn money by investing in mutual funds?

– When your capital (the money you initially invested) increases in value by investing in solid and strong companies.

– When the company you invested in gives you dividends.

– When the bond you invested in gives you interest income.

Do you need a lot of money to start investing in mutual funds?

No – and this is great! Because this means that even if you’re not a millionaire yet, you can be one, by choosing to invest now.
If you choose to invest in a mutual fund exclusively, the initial deposit that you can start with is P5,000. You can then choose to invest P1,000 monthly.

If you choose to invest in a variable unit-linked life insurance, you can have an investment + insurance (income protection) account for around P1,500 monthly or P18,000 yearly, assuming you’re a 20-something.

What are the types of mutual funds that you can invest in?

The magic number is 4. There are four types of mutual fund investments in the Philippines that you can put your money in:

1. Money Market Funds – Super Short-term (one year or less)
– invest in fixed-income securities
– very liquid so you can tap into them as needed
– growth of your investment is conservative
– low-risk

2. Bond Funds – Short-term (1-5 years)
– invest in fixed-income securities like government bonds or corporate papers issued by solid Philippines companies
– it’s like you’re lending money to the government or to the solid companies and they promise to pay you a guaranteed (low) interest rate
growth of your investment is conservative
– low-risk

3. Balanced Funds – Medium-term (6-9 years)
– combination of bond funds & equity funds
– moderately aggressive
– higher growth potential than bonds but lower growth potential than equity funds

4. Stocks/Equity Funds – Long-term (10 years or more)
– your money is invested by buying shares of “ownership” of reputable Philippines companies listed in the Philippine Stock Exchange
– you become a part-owner of the company you bought shares from
– high risk because if the company you invested in is awesome, you get awesome returns; if it’s not that great, you get not that great returns as well
– highest possibility of growth


Want to get started managing your money/budgeting/investing? Contact me, your trusted financial advisor, through the following:

Twitter: @MsLianneLaroya
Mobile: 0916 737 8741

And we can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works.

If you find this post helpful, please SHARE it to your friends. Who knows, you might help them by educating them. 🙂 Thank you, wonderful people!

Live wisely,

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Money in Nest image by renjith krishnan/
Millionaire Businessman image by koratmember/

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