Mutual Funds


The Colayco Foundation strongly believes in the power of mutual funds to build wealth for the average income earning Filipino and for OFWs. 

 

Source: PIFA

WHAT ARE THEY? :  ”A Mutual Fund is an investment company that pools the funds of many individual and institutional investors to form a massive asset base.   The assets are then entrusted to a full time professional fund manager who develops and maintains a diversified portfolio of security investments.  People who buy shares of a mutual fund are its owners or shareholders.”

Mutual funds are classified into the ff: 

  • Stock fund- 90% of the fund is invested in stocks or equities
  • Balanced fund- 45% invested in stocks and 45% in fixed-income instruments
  • Bond fund- 90% invested in fixed income instruments such as government securities and corporate papers
  • Money market fund- placed in fixed-income short term funds

HOW DO THEY WORK? : Depending on the type of mutual fund, a professional fund manager invests the gathered funds in stocks, government securities, and other financial instruments.  Thus the money of the shareholders is spread across different financial instruments. “A mutual fund can make money from its securities investments in two ways: a security can pay dividends and interest to the fund, or a security  can rise in value.  The fund passes any dividends, interest or profits on the sale of its portfolio securities, less fund expenses, to shareholders in the form of distributions.” These gains are reflected in the NET ASSET VALUE (or price) of each share of the mutual fund.

WHY CHOOSE THEM? :

  • Gives an average annual returns of 8% to 20%. Returns are not guaranteed.
  • Medium Risk – Highly convenient since a professional fund manager takes care of the fund
  • Medium Risk – The fund is diversified
  • Medium Risk – Grants you opportunity to invest in more than one company
  • It’s affordable because you will only pay P5,000 or P10,000 to start investing.
  • Ideal for your medium to long term financial goals.

The complete list of all legitimate (not scams) mutual funds in the country can be found on www.pifa.com.ph . Contact information can be found there. If you are based in the Philippines, get in touch with the company of your choice. Mutual Fund agents are nationwide. If you are an OFW and/or are currently abroad, Philippine and international law prohibit the sale of investments (or opening of accounts) except in the country it is being offered. A relative in the Philippines can make an account under his/her name first and transfer it later when you are in the Philippines. Better yet, consider joining KsK Cooperatives Mutual Fund Regular Saving and Investing Program. KsK Coop was specifically established to help OFWs and Seafarers achieve their wealth goals. For more information visit www.kskcoop.com email joel@colaycofoundation.com or call/SMS 09178537333. (Note: KsK Coop is also open to non-OFWs).

Want to invest? A list of all available mutual funds can be found on www.pifa.com.ph

GOVERNMENT REGULATORY BODY: Securities and Exchange Commission

Other: Philippine Investment Fund Association (PIFA)