Benefits of Mutual Fund Investing

Hello, fellow investors! 

Hubby and I are now reconsidering mutual funds as our next initial steps towards financial freedom and stability. I got an e-mail from Colayco Foundation for Education Inc and I am now sharing it all to you. You may also visit their page and subscribe to their newsletters or news feeds. I could guarantee you that it is a good thing and would be of your own great advantage - very helpful, useful and oh so inspiring.

Please visit their page now. Here's the LINK.

For your information and guidance. Build your wealth today, see you at the stardom.  :-)

Thanks,

Mommy Mai

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Benefits of Mutual Fund Investing

Mutual Funds are the best growth instrument for ordinary income earners for these 3 very simple reasons:

1. AFFORDABLE

For a minimum of Php5000 initial investment (and a minimum of Php1000 every additional investment) mutual funds can be the primary growth vehicle for your hard earned savings. It is possible to invest this low because mutual fund managers pool the money of many investors to make a big fund which can be used to purchase stocks and bonds which as an individual you may not be able to purchase on your own.

2. PROFESSIONAL FUND MANAGEMENT

For ordinary people to effectively invest in the stock market and debt market directly, one would need to invest in education, time and amass a bigger capital to prudently manage the risks and gains of these individual investment instruments. Mutual funds are managed by professional fund managers - people who have spent their lives honing the craft of growing your money through the equities and debt markets! They live, eat and breath the financial markets thus they are able to effectively grow the funds under management as well as preserve the fund in times of economic decline. Mutual funds are also highly regulated by the Securities and Exchange Commisison. They follow very strict procedures in managing the fund as required by the SEC.

3. LIQUIDITY

A mutual fund company is required to buy back your investment at any time. This means that unlike the stock investing where you have to wait till the system matches your volume-price sell offer with that of a buyer - in mutual funds, there is always a ready buyer - the mutual fund company. There are no maturity periods though if you redeem your investment before six (6 months) a minimal exit fee is charged. Over all, you can get the cash when you need it. This is very important as you may have future unforeseen financial obligations or opportunities wherein you need money.