Is Mutual Funds Right For You?

What is Mutual Funds?  Mutual Fund is an investment company that pools the funds of many individual and institutional investors.  It is an investment vehicle. These are managed by full time professional fund managers.

Mutual Funds are earning these ways:  Thru 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.

Four Types of Mutual Funds (In the Philippines)

1. Stock or Equity Funds – Investors who wants to maximize growth for a long term and understand the risks of the stock market.

2. Money Market Funds – Fixed income and money market instruments. Money Market Funds are suitable for conservative investors who are looking for higher returns than regular savings and time deposits.

3. Bond Funds – Medium to long-term fixed-income instruments like government securities. Suitable for moderate risk-taking investors who are looking for higher returns.

4. Balanced Funds –  Suitable for those investors who are in between conservative and aggressive are who are looking for more profit in spite of risks.

For better understanding on Mutual Funds you must watch this video by Laurent Dionisio and find out if Mutual funds is really the right investment for you.




Investing your money is a gamble, so you must study very well which investment firm you want to put your money.