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Mindset Is Important

Having the right mindset is important. I bet you’ve read and heard about that many times in your life when you read blogs about investment, attend seminars, and finish money-related books. Mindset is too important because this is the first thing that drives an individual to be different from the rest of the population. Having the mindset of an entrepreneur or an investor is an essential attribute if you’re thinking to start your own business or invest in stocks, bonds, and other funds. However, before you can acquire this proper mindset we’re talking about, there is a rough road ahead. Switching from different thinking to another is a process and everyone goes through that procedure step by step. If you’re wondering how you can do this, here’s what you need to do to start changing your money mindset.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

Stock Smarts Manila —  June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

Forget What They Told You About Money

The first thing you need to do to correct your money mindset is to forget about what they told you about money when you were still a child. There are a lot of myths and theories about money, really. Some of us have been told that for you to have a big load of cash, you need to finish your study and work hard afterward. This is what Filipino culture has been since the beginning. Only a few were told to become financially educated and become a businessman or investor right after. If you’re the former, leave it in the past. Think the other way around. Educate yourself to become not just a regular employee. Think about financial freedom and retiring young.

CHINKEE TAN: HOW CAN YOU BE RICH? - YouTube

Be Thankful 

Practice gratitude. That’s the next thing you need to practice. You can’t live with money without being thankful for it. Observe anyone who was once rich and lost his money because he failed to appreciate the value of it. See what happens to a person who doesn’t appreciate money as a blessing? Most of the times, investors and businessmen lose direction because they lack the practice of gratitude. You can change the way you think by starting to thank for blessing you with such abundance. Money is powerful and valuable regardless of the amount. You can get rich by starting small, you can get wealthy by starting big. Be grateful with what you have, that’s one of the steps to change your money mindset.

Dream Big

It’s not bad to dream big. Setting huge goals actually helps. If you want to be financially free in the near future, you should set your objectives higher than anyone else. After setting your goals, act upon it with gratitude and perseverance. I met a lot of successful people who dreamt big and never stopped reaching their dreams. Again, it’s not about the amount of money you have. It’s all about how you think and how you imagine. If you start imagining limitless, that’s the time you will attract positive forces that can help you become confident when investing, trading, or doing business. Never stop dreaming!

WHY I INVESTED EARLY - YouTube

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post HOW TO CHANGE YOUR MONEY MINDSET appeared first on Marvin Germo.

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Practical Ways To Appreciate Your Money

It’s normal for people to get excited when money comes. Who wouldn’t want that? Even big companies and rich people put smiles on their faces when incoming cash flows increase. For a normal young professional with an average income, 20,000 PHP or less is already something to keep. So, if you are reading this and you have 20,000 PHP in your wallet, where will you spend it? Will you use it to buy a phone for an upgrade, a laptop, or shoes?

Practically speaking, there are a lot of ways where you can use your hard earned money to increase your 20,000 even more rather than spending it on something that will soon depreciate. To give you an idea, here’s my list of investment ideas to appreciate your cash.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Investing Insights (Dubai) – March 1, 2019
Stock Smarts Manila —  March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu —  April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore —  May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stok Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

Unit Investment Trust Funds

UITF are the top options for conservative investors. With your 20,000 PHP, you can get an affordable investment through these funds with a bonus of a fund manager who’s in charge to take care of your money. These are pooled investments like mutual funds but are cheaper. And in case you need to get them for emergencies, they are liquid, which means you can withdraw them right away.

Mutual Funds

Another type of pooled investments is mutual fund. I have shared in my previous post how this fund works and you can check that out if you’re interested. It is definitely an option for someone who has 20,000 PHP or lesser because it’s like you and other individual and corporate investors are collecting your money altogether so the fund manager can invest it in high-yielding investments.

WHY RANDELL LIKES MUTUAL FUNDS THE MOST - YouTube

Investment-type Insurances

Today, you get to encounter a lot of financial advisors offering several types of insurance. I shared some of the information of investment-like insurances in my video below. Technically, this type of investments will require you to put a certain amount of money in your insurance every month. After 5-10 years, you can get the fund you investment with promising returns.

Stocks

Don’t forget stocks as an option where you can spend your money on. There are available platforms where you can start learning and investing in stocks. One of the trusted online platforms here in the Philippines is COL Financial, which will give you direct access to market data and analysis. COL lets you start with 1,000 PHP. You can get far beyond what you imagine with your 20,000 PHP if you invest it in stock market.

INSURANCE THAT ACTS LIKE A PROPERTY INVESTMENT - YouTube

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post Investment Ideas For P20,000 Or Less appeared first on Marvin Germo.

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You need to increase your cashflow

Sometimes it’s not just about budgeting, making ends meet and saving as much as you can. If cashflow is tight per month, the next thing that you could do is try to find ways on how you can make your money grow and make it come in on a regular basis.

For this blog post I am sharing a video interview with Randell Tiongson on how you can increase your cashflow and as we tackle other significant items in personal finance such as financial planning, life insurance and investing.

Investing Insights Japan 2019 (quick plug)

Catch me and super rich CEO at 22 Sean Si as we give you principles on how you can Make Money and Grow Money via business and investments.

Investing Insights Japan – April 13, 2019

Also in this article I also I posted snippets of his post Understanding Cashflow

1. Make more money

The most straightforward way to have more money is, well, to make more money. So invest in your best asset — yourself! Read books, widen your knowledge, improve your skills to expand the range of income streams you can have. For me, it was reading books that improved me; I became a better writer and teacher through reading, and I also learned a lot of things directly or indirectly related to my profession. Having more marketable skills will increase your earning power and positively influence your cash flow.

HOW DO YOU INCREASE YOUR INCOME? - YouTube

2. Invest in learning

Invest in learning. This is a part of investing in yourself. The more you know, the more ways you can find to make money. Whether that’s by improving yourself in your current company or learning ways you can start your own business or sidelines, learning is an investment that will never go to waste.

3. Be enterprising

I’ll admit that I don’t think entrepreneurship is for everyone. However, I still think that more Filipinos can go into entrepreneurship. But it’s important that you go into it armed with knowledge — among others, you should read about the business you want to get into, observe the market, make sure your business plan is solid, and have an exit plan. It would also help to start small, such as basic buy and sell or commission selling. There are many opportunities for the beginning businessman (or woman); these 9 businesses you can start for less than P50,000 is a good jumping-off point. The number of SMEs in the country is increasing, and it’s always heartening to hear success stories. If you prepare correctly, and with God’s grace, you could be one of them. A successful business or sideline will do wonders for your cash flow.

4. Spend less money

. Making more money takes time and effort. It may take months for you to get that pay raise, or even longer for your business to start raking in profits. You know what takes less effort and has immediate effects? Spending less money! I’ve said it so many times that you might feel like I’m a broken record, but it’s still true — the way to wealth is spending less than what you earn and investing the difference. If you do this for the long term, you’re sure to meet your goals.

While it may take objectively less effort to spend less than to make more, it also feels a lot more painful. We Filipinos have a culture of spending. How many times have we promised ourselves that we’d be more diligent about spending, only to go out and make unnecessary purchases?

The thing we must remember is spending on things we want, as pleasurable as it might be, is only temporary. This doesn’t mean that you should never spend money on “unnecessary” things, but you should never let it affect your financial well-being. Track your spending, identify where you can cut back, and control your spending — don’t let it control you.

New book and other books on Investing, Business and Finance.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.

For more details and to order my other books: Marvin Germo Book Orders

The post INCREASE YOUR CASHFLOW appeared first on Marvin Germo.

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Where should you invest this 2018?

With so many investment options available where should you invest? With so many changes in the economic landscape, which investment will do well this 2018 and which will come out flat? Check out this video interview with Randell Tiongson as we give you a snippet of what we plan to discuss this May 26, 2018 in ICON 2018!

ICON 2018!

Where should you invest this 2018?  To register: www.bit.ly/ICON_2018

Here’s a breakdown of some ideas discussed in the video:

1. Bitcoin
2. Taxes
3. Stocks
4. Bonds
5. MutualFunds
6. Insurance
7. Renting vs #Buying
8. What Business to Start
9. Stewardship
10. Agriculture
11. Entrepreneurship
12. Scams
13. Economics
14. Valuations
15. Blockchain
16. RealEstate

Enjoy the video!

WHAT INVESTMENTS WILL DO WELL IN 2018? - YouTube

New book and other books on Investing, Business and Finance.
I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post WHAT INVESTMENTS WILL DO WELL IN 2018? appeared first on Marvin Germo.

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In spite of the volatility over the past few months the Philippine Stock Exchange index (PSEi) is up nearly 300% from its 2008 lows and the property markets in Bonifacio Global City (BGC) and Makati have already more than doubled. The stable and reliable government and corporate bonds, though not moving as much, remain a steady source of passive income that still outperform any bank deposits out there.

While all of these investments have been moving upward, our consumption-driven economy has also been skyrocketing and moving up parallel to those investments, hitting and maintaining a 5–7% GDP growth range over the past few years. This is in the midst of lackluster performances by other economies in the world. Our inflation (increase in the price of goods) and interest rates continue to be low, while our BPO Industry and OFW remittances continue to rock and change the dynamics of the business landscape in the Philippines.

We are living in exciting times, my friends! However, in spite of this amazing growth, less than 1% of the population is investing in the stock market and as of this writing we only have 244,787 mutual fund accounts and 3.9 Million life insurance policies in force for a population of almost 100 Million.

There seems to be a disconnect between our amazing growth story and the number of Filipinos who are investing. I always say in my talks that, in a growing economy, the rich will always get richer. Which is why I believe it is time for every Filipino to take part in this change. It is no longer a question of whether the economy will get better or not but it is rather a question of what you are going to do to take advantage of the growing economy.

 The reason I am so passionate about writing and talking about investing is that I believe our country is bound for greater things: That we will see a new breed of Filipinos starting their own businesses, and that there will be a new generation of market shakers who will massively invest and make their money work hard for them. I believe that we Filipinos can do this, and I will do everything I can in my sphere of influence to transform consumers into investors. Are you with me?

In my numerous talks in the Philippines and abroad, and in the TV and radio interviews that I have had the opportunity to do, I have repeatedly heard this one pressing question: Where should I invest?

That question, if not answered correctly, could lead Filipinos to take part in investments that do not fit them. One bad example I have seen far too often is that during downturns, new investors will panic and sell at a loss. Another incorrect answer I’ve seen is our kababayans placing their bonuses and savings in scams and get-rich-quick schemes.

Over the past 3 years, I have written books primarily on stocks and stock market investing. However, I have realized that a guide or a lifeline as to where Filipinos can invest their hard-earned money is sorely needed. I have also realized that most books about investing strategies and risks were written specifically for western audiences and those that are written by Filipinos for Filipinos are so few in number.

That’s why this book is quite different from what you are used to if you are an avid follower of my Stock Smarts series. This book aims to take your learning a step higher. It will give you a better perspective on the different investments that are out there, along with the strategies and phases in which investments will work or not.

 I dream of a day when multitudes of Filipinos are not just debt-free and have ample savings but also have their own businesses or massive investments. I dream of a day when walking across Ayala Avenue and Paseo De Roxas, I will see more people stop and check what is happening to their stocks. I dream of a day when people riding our MRTs would check out the latest investment and business news instead of the latest gossip.

 If you are hungry to know more about where to invest, I believe this book is for you.

 This book is for you…

  • If you are just starting out and do not know how to start building wealth
  • If you are on your own and don’t have a trust fund to rely on
  • If you are in debt or have a hard time saving money
  • If you think you should quit your job and start your own business
  • If you do not know where to invest first, whether it be real estate, stocks, bonds, or even starting a business
  • If you have no idea how to create cash
  • If you have read the Stock Smarts book series and want deeper understanding on business, financial planning, and other investments
  • If you just want to make your money work hard for you

 My deepest desire is that this book helps you build a strong foundation in the different aspects in your investing life and that it becomes a one-stop shop for everything you need to know about business, finance, and investing. I want you to be so confident that, after reading this book, you venture out and pursue the God-given desires that have been placed in your heart. I believe the reason you are reading this book is because there is already an inkling, a desire, a yearning that you want more than the usual. It can be done! You can be financially free. I believe in you! I am excited to start, are you?

If you are, then get ready and buckle up—it’s time to know Where Should You Invest.

If you want to pre-order the book you may order by clicking this link or join us for the book launch at the Financial Fitness Forum this March 12, 2016 at the SMX Aura.

Here’s what other people say about the book:

Miriam Quiambao-Roberto
TV Host, Entrepreneur, Inspirational Speaker, Author

“Marvin has a gift of breaking down complex ideas into simpler terms. This book will help you determine the step by step process of investing wisely and effectively. Whether you are a low income earner considering to begin investing or a sophisticated investor, you will surely learn much from this book to maximize income and be a blessing to many.”

Diwa Guinigundo
Deputy Governor, Bangko Sentral ng Pilipinas

“This book connects the dots of wealth creation, multiplication and preservation…. Marvin rightly concludes that creating wealth has a purpose.”

Valerie N. Pama
President, Sun Life Asset Management Company Inc. 

“I am grateful that Marvin has written this book to save our fellow Filipinos from being misled to invest their hard-earned money in get-rich-quick schemes. Now attaining a per capita of $3000, our countrymen have money to invest but need guidance and tips on what investments and strategies are appropriate for their needs. I believe Marvin’s book will educate and simplify these concepts to the ordinary Filipino and build our culture from merely spending but to investing as well.”

Ferdinand Berba
President and CEO, Philam Asset Mangegement Inc.

“The road to Financial Wellness is often times difficult because people get indigestion with information overload and advice from so many experts! Marvin has walked the path and has a rare gift of simplifying theories and integrating his experiences to make it understandable even to grade school kids! His new book is a must read and should give the reader the insights necessary to ensure anyone can take the Financial Wellness journey and achieve his or her “wealth” goals and dreams.”

Rex Mendoza
Managing Director and Founder, Rampver Financials

“There are many advocates of personal finance and investing, and their effectiveness can be highly variable. Marvin is one of the highly successful ones because of two important reasons – he knows how to simplify and he connects and leads his readers directly to execution. The key issues facing people who want to change their financial track are understanding and action, and Marvin certainly addresses these with ease and conviction.”

 

The post Where Should You Invest? appeared first on Marvin Germo.

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Mutual Funds anyone?

Sharing a previous post by a good friend Edmond Lao. For those wanting to know more about

Mutual funds have been one of the better alternatives to just saving money in the bank. Gone are the days when time deposits were as high as 22% per annum. Nowadays, banks are good only for safekeeping your hard-earned money. Growing your money through the bank to reach your goals is next to impossible.

Investing in mutual funds does not guarantee a return. Past performance can be a gauge but can never guarantee future return. Past performance will allow us to see how well the fund managers made our money grow.

Investing requires one to align it to his goals, risk profile and the timeline to his goals. He has to carefully determine the future value he needs so that he can project how much to invest regularly.

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

1.  Time constraints.

There are people who are too busy with their work that they do not have the time to study how the other instruments can work for them. Without knowledge and expertise, a lack of conviction can be seen in their investments and it can be prone to investing mistakaes. It would be better for them to have a professional manage their money so they can focus on their daily routine. Leaving it to an expert is a form of leverage where the investors use other people’s effort to grow their money.

2. Inflation.

Unless the growth of money is higher than inflation, it is definite that the investor will need more money to buy the same item that he needs. He needs to work harder and longer just to be able to earn more. By investing at a higher return, he needs less effort to make more as it is his money that will be working to make more.

3.  Economy of scale.

An ordinary investor who wishes to invest in instruments such as bonds  may not have that much money to get in. He will lose the opportunity as he only has a small purchasing power. By joining a mutual fund, he is joined to a big pool of funds that is exposed to an investment instrument previously inaccessible to him. This is similar to the saying “united we stand, divided we fall”.

4.  Business.

When one invests in a mutual fund, he is already a business owner. A lot of people dream of having their business. Unknown to them, for only Php 1,000, they become part owner of a mutual fund (which is a corporation). They become business owners where board of directors, fund managers, and staff work for them and make their money grow. This is the same as a traditional business owner who has people working to make money for him. Imagine, investors are stockholders and they receive annual reports from the mutual fund company.

5.  Economic growth.

Not all may know this. As we invest in mutual funds, we help companies grow via bonds and IPOs. Companies need money to expand and they either use bonds or stocks to generate the needed funds. In effect, mutual funds indirectly help companies expand and create jobs and also help government get revenues via tax. Specially in equities, the more we invest, the less we depend on foreign investment to keep continue on its bullish trend.

 Wouldn’t it be great to invest in mutual funds? The more we invest, the more we benefit as individuals and as a country.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
 INVESTING INSIGHTS 2018!

Where should you invest this 2018? To register: www.bit.ly/investinginsights2018

The post TOP 5 REASONS TO INVEST IN MUTUAL FUNDS appeared first on Marvin Germo.

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Ever since the creation of mutual funds, it has become one of the most common and popular investment vehicles for the small investors.  So simple is the concept that even prospective investors with limited knowledge can have the benefit by simply entrusting his excess money to the mutual find company.  This is part 4 of our “Mutual Fund Series.”  Let us now look at some of the advantages a mutual fund can give to the investors.

1. Diversification
One important rule of investing, for both large and small investors, is asset diversification. Diversification is all about the mixing of investments within a portfolio and is used to minimize risk. An example of diversification is buying different stocks from different industries such that the possible loss one can be offset by the gain in the other. As the saying goes, never put all eggs in one basket.  By purchasing mutual funds, you have the  immediate benefit of instant diversification and asset allocation without having to shell out  large amounts of cash needed to buy  individual portfolios.

    

2.Economies of Scale
When we buy items specially in bulk, the price is much lower than by buying in piece. With mutual funds, because of the size of the pooled investors monies, these funds are able to take advantage of their buying and selling size and thereby reduce transaction costs for investors. When you buy a mutual fund, you are able to diversify without the numerous commission charges as charged you buy different stocks. If you want to diversify and had to buy  10-20 stocks, the commission charges alone would eat up a lot from your money. With mutual funds, you have the opportunity to make the same large transaction for less cost.

3. Affordability
When investing in the stock market, most investors don’t have the exact sums of money to buy round lots of securities. Five thousand pesos is usually not enough to buy a lot of a stock. By investing in a mutual fund, investors can purchase mutual funds in smaller amount (minimum one thousand pesos) after opening their account.  This provides investors the ability to make periodic investments through monthly purchase plans while taking advantage of cost averaging . Instead of having to wait until you have enough money to buy high priced securities, you can get in right away with mutual funds.

4. Liquidity
Another advantage of mutual funds is the ability to buy and sell it with great ease. Mutual fund companies can buy back the shares you want to sell back any time you want. However, take note that there are holding periods and if the redemption is within the holding period, there are corresponding charges.  Contrary to  stocks and ETF, which trade any time during market hours, mutual funds transact only once per day after the fund’s NAVPS is calculated (usually at the end of the day).

5. Professional Management
When you buy a mutual fund, you are in effect hiring a fund manager and his job would be to use the money that you invest to buy and sell stocks that he or she has carefully researched. You are leveraging on his expertise, effort and time to grow your money. You can go on with your daily routine and let the fund manager do his part in growing your portfolio.

6. Tax benefits
Investments in mutual funds are not subject to with holding tax anymore. This allows the investor to enjoy all his investment as compared to deposit accounts where the interest is taxed 20%. Money is not taxed is best left to compound to maximize it.

7. Anti-inflation
When you buy a mutual fund, you have a potential to get a higher return, and in effect outpace inflation. Inflation is our money’s silent killer. Inflation erodes the value of money.  Bank products nowadays give a yield way below the inflation . Choose a mutual fund with a good track record so that your money will retain its purchasing power over time.                                          

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Edmund Lao is a Registered Financial Planner who has a passion to help Filipinos invest and right way and avoid being scammed.  He is known by many as the “SCAMCROW” loved by investors feared by scammers.  His passion is to save Filipinos from scams and teach them to invest properly in stocks, bonds, and mutual funds.  He owns the website wealth-wonder-boy.blogspot.com

——————————————————————————————————————————

My 2nd book Stock Smarts: Winning Strategies is now out!  Click the Link to Register and Order.  

 If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you.   I’d like to invite you to our upcoming events

For inquiries, registration, and payments email: stocksmartsconsulting@gmail.com

*Photos via google search
*chart via chart nexus

The post Seven Advantages of Mutual Funds appeared first on Marvin Germo.

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This is Part 3 of our Mutual Funds series, where in the past we have discussed the minimum amount needed for mutual fund investing and the risks entailed to invest.  As there are risks in mutual fund investing, there are also rewards as well.  As the saying goes, the higher the risk, the higher the rewards/potential loss.

 Mutual funds investing have gained popularity nowadays , owing to the double-digit gain it has produced every year after the last Global Crisis which was brought about by the sub-prime crisis (due to GREED) in the USA.

Unlike bank products, investing in mutual funds is not guaranteed. Because of this nature, an investor has the potential to have a better, if not the best, return for his money. To avoid a scenario of disaster, it is advisable that only excess money must be invested so that whatever may happen will not have a negative impact on the current financial situation of the investor.

 

What are the potential gains in mutual funds investing?

1. Capital gains. By investing in mutual funds, your money is converted to shares with the corresponding share price.  As you stay invested until you reach your goal, there is a potential for the share price to appreciate. Appreciation of price in mutual funds result to compounding return, meaning your past gain earns more gain for you if you remain invested, most of the time the gain outpaces inflation.

2. Dividend gains. Thers are mutual funds that are focused on companies that give dividends. However, the dividend gained is pooled back into the fund in the form of share price increase, which results to capital gains.

3. Tax-exempt. Mutual fund gains are not anymore subject to withholding tax. Whatever the value of the shares at the time of redemption, the investor gets the full amount. Less taxation will mean more money for the investor. Unlike with deposit accounts where the interest gained is taxed 20%. The tax-exempt feature of mutual funds translate to a gain in the investment. Under PERA, investment in mutual funds (200k for OFW and 100k for non-OFW) will result to a 5% reduction in the income tax.

———————————————————————————————————————————

Edmund Lao is a Registered Financial Planner who has a passion to help Filipinos invest and right way and avoid being scammed.  He is known by many as the “SCAMCROW” loved by investors feared by scammers.  His passion is to save Filipinos from scams and teach them to invest properly in stocks, bonds, and mutual funds.  He owns the website wealth-wonder-boy.blogspot.com

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My 2nd book Stock Smarts: Winning Strategies is now out!  Click the Link to Register and Order.  

 If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you.   I’d like to invite you to our upcoming events

For inquiries, registration, and payments email: stocksmartsconsulting@gmail.com

*Photos via google search

The post What are the potential gains in mutual funds investing? appeared first on Marvin Germo.

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This is part of our Mutual Funds series having the end goal to give you a hollistic understanding of what mutual funds are and how you can take advantage of it.  For this post we would be discussing the Risks of Mutual Funds Investing

Enjoy!

Risk is defined as a probability/threat of damage, injury, liability,  loss, or any other negative occurrence that is caused by external or internal factors , and that may be avoided through preemptive action.

Risk is present everyday and everywhere as long as we are living. We can not avoid risk but we can minimize it. If there are risks in life, there are also risks in investments. There is no such thing as risk-free investments and mutual funds is not immune to risk.

The following major risks associated in mutual funds investing are:

1. Market risk. Mutual funds are marked to market, meaning they are dependent on the fluctuation or volatility of the market. Mostly affected is the equity-laced mutual funds as the stock prices fluctuate daily positively or negatively by a big margin. The only way to ride out the fluctuation is by investing for the long term as historically, stock prices have been proven to be on an upward trend over the long term.

2. Liquidity risk. There are always going to be some stocks in the portfolio which may not be that liquid and also it depends on the nature of fund that you are invested in. For example, if you are invested in a large cap stock there there is no problem of liquidity because all these large cap stocks are quite liquid (easy to sell back and get your money), but if you are invested in a small cap fund the liquidity is going to be an issue.

3. Credit Risk. What is that credit risk? When you invest in a bond mutual fund, the money is ultimately invested in debt securities. Every security is actually rated. Make sure that when you invest in a fund, the fund has invested in higher grade investment securities because the company can default in terms of paying interest or principal or both.

4. Interest rate risk. This kind of risk is inherent in bonds. Bonds and interest rates are inversely proportional. An increase or decrease in interest rate will result to a decrease or increase in bond yield.

5. Inflation risk. This refers to the possibility that the value of an asset will decline due to  inflation which shrinks the value of a currency. Because inflation can cause the purchasing power of cash to decline, investors may want to consider investments that appreciate, such as growth stocks or bonds designed to stay ahead of inflation long-term.

6. Other risks. There are other minor risk such as business risk, currency risk, political risk, geographical risk. Most of all, these risks will be handled by the fund manager. If the fund manager is good, then expect the fund to perform well. Although the choice of a fund manager is also a risk factor, most often than not, there is a research team that will back up the decision of the fund manager in making our money grow.

———————————————————————————————————————————

Edmund Lao is a Registered Financial Planner who has a passion to help Filipinos invest and right way and avoid being scammed.  He is known by many as the “SCAMCROW” loved by investors feared by scammers.  His passion is to save Filipinos from scams and teach them to invest properly in stocks, bonds, and mutual funds.  He owns the website wealth-wonder-boy.blogspot.com

———————————————————————————————————————————

My 2nd book Stock Smarts: Winning Strategies is now out!  Click the Link to Register and Order.  

If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you.   I’d like to invite you to our upcoming events

For inquiries, registration, and payments email: stocksmartsconsulting@gmail.com

*Photos via google search

The post The Risks of Mutual Funds Investing appeared first on Marvin Germo.

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Investing in mutual funds is as easy as 1-2-3, all you have to do is just make a placement, just like in time deposits. You just leave your money with the fund an continue with your daily routine while leveraging on the effort, time, and expertise of the professional fund managers.

Unknown to many, investing in mutual fund does not require a big amount. To open a mutual fund account, an investor is required to place a minimum amount of Php 5,000. There are other types of mutual funds that require a minimum initial amount above Php 5,000. The amount depends on the mutual fund company and the type. As an example, Philam Strategic Growth fund requires Php 20,000. For Philequity, its Dividend Yield Fund needs Php 20,000 and  PSE Index Fund needs Php 200,000  as minimum investment amount.

Php 5,000 is an affordable amount to invest and make your hard-earned money grow. After opening your account, you can do regular top up with a minimum of Php 1,000. Wealth-building is not a one-time process. It takes a lot of sacrifice at the beginning but once you get used to it, you will realize that investing is addictive. It is not the amount but the habit that will help you build your wealth.

——————————————————————————————————————————

Edmund Lao is a Registered Financial Planner who has a passion to help Filipinos invest and right way and avoid being scammed.  He is known by many as the “SCAMCROW” loved by investors feared by scammers.  His passion is to save Filipinos from scams and teach them to invest properly in stocks, bonds, and mutual funds.  He owns the website wealth-wonder-boy.blogspot.com

———————————————————————————————————————————

My 2nd book Stock Smarts: Winning Strategies is now out!  Click the Link to Register and Order.  

If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you.   I’d like to invite you to our upcoming events

For inquiries, registration, and payments email: stocksmartsconsulting@gmail.com

*Photos via google search

The post What is the Minimum Amount to Invest in a Mutual Fund? appeared first on Marvin Germo.

Read Full Article

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