That thing called Mutual Funds
- Miss Investor
- Oct 20, 2016
- 3 min read
“Wait, what? “
Nope we’re not gonna talk about your love life girl. Not a chance. Bcoz, we’re gonna talk about some more exciting and kilig stuff – putting more money into your pocket (so you can shop harder hihi) through MUTUAL FUNDS!
So what the heck is this Mutual Funds?
Well according to Investopedia.com, “a mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. It is operated by money/fund managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.”
I know, I know. You kind of want to reach out for a tissue right now. It does sounds nose bleed and geeky, but in a simpler, sexier definition, Mutual Funds is like an Uber Pool.
Because I know you guys are sosyal, I’ll be using Uber as a metaphor.
Let’s say you’re off to work to BGC and you saw that there’s a sea of people waiting for the BGC Bus to arrive for more than 10 years already, and you kind off not wanting to squeeze yourself there because your #OOTD and Make Up game is so strong, but at the same time, you didn’t want to get a cab or book an Exclusive Uber ride, because you know, you’re saving money for that Personalized Stan Smith sneakers you saw on an online seller in IG.
So what is the option left? Book an UBER POOL.
That way, the cost of riding the car pool is divided to the other riders as well. It’s not only smart and thrifty, but the most important thing is you’ll pretty much arrive at the office FRESH and you’ll remain human (if you know what I mean).
So what does this have to do with your money? Simple.
Mutual Funds allow ordinary people like us to invest on bonds, money market and stocks of companies or huge corporations such as SM Supermalls, Ayala, San Miguel Corporation, Jollibee and many more without needing millions of pesos and without the headache and tediousness of knowing and carefully analyzing where and when we need to invest, because PROFESSIONAL Fund Managers do it for us. Just like in the case of the Uber pool, there’s a vehicle and a professional, well-mannered driver who could help us get to wherever we want to go, in style if I may add.
That is the same thing with Mutual Funds.
We have our:
Investment Target (Destination) +
Fund Manager (Professional Driver) +
Other Investor (other passengers) = MUTUAL FUNDS
Simple right?
So imagine girl, if you have a Paper Asset like a Mutual Fund, you are actually part of the shareholders of the companies you’ve invested on. And what could be sexier than that? Being able to be a part of something big, (even if you are just starting small) is already an item on your bucket list checked for you!
So how do you get a Mutual Fund?
Nope, this is not available in the Department Store.
Kidding.
Well, you can talk to a Certified Investment Solicitor and let him/her know your intentions of investing. The CIS is a licensed (with SEC) and a professional representative of an Investment house. This person will help and guide you in identifying your financial goals, also identify what type of Investor you are, and then match solutions with your target.
So there, if you wanna know what companies offer this check out my other blog: 5 PH Investment Companies you should Check Out!
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Disclaimer: The author of this article is not connected or affiliated with any investment companies and or Financial institutions that offers the investment stated above. All information shared in this blog is based on her knowledge from taking training and seminars in the financial industry.
Photo source: philstar.com
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