[wealth4me]

SIP or in other words Systematic Investment Plan is a very good method to invest in different mutual funds with little money on regular basis. You can also visit my blog post for more details
http://www.wealth4me.in/mutual-fund-systematic-investment-plan

[vgal0579]

Good news to MF investors.... =)

Investments in mutual funds surge in first semester

MORE FILIPINOS have invested in mutual funds, attracted by the strong performance of the stock market, fund managers said.

The mutual fund industry’s net assets under management, according to data from the Philippine Investment Funds Association, Inc. (PIFA), rose by 21.45% to P124.60 billion as of June.

Net assets is the difference between assets, or money placed by investors in either bond, stock, balanced or money market funds, and liabilities, which include administrative fees and charges levied on investors.

PIFA, formerly known as the Investment Company Association of the Philippines, groups the country’s fund managers. Its report covers the performance of 47 mutual funds.

Though bulk of net assets were in bond funds (P70.66 billion as of June, up by 22.60% from last year), fund managers noted the significant growth in the net assets in stock funds.

Net assets in stock funds rose by 35.40% to P28.42 billion in the first six months of the year.

In contrast, net assets in balanced funds, which are invested in both bonds and stocks, inched up by 4.86% to P24.17 billion.

Money market funds, which are invested in fixed-income securities with tenors of one year or less, notched a 46.24% rise in net assets but these total only P1.35 billion.

“It is remarkable that the industry’s net assets are growing on the equities side. This is due to the country’s strong fundamentals, the positive economic outlook and the strong performance of the stock market,” said Hector C. de Leon, First Metro Asset Management, Inc. executive vice president and chief operating officer, in a phone interview.

In the first semester, the Philippine Stock Exchange index climbed by 22.26% or 955.20 points to 5,246.31 from 4,291.21 in the same period last year.

“Equities are spearheading the mutual fund industry’s growth this year given the low interest rate environment. And nothing in the horizon shows that rates will rise anytime soon,” Mr. de Leon noted.

Investors, he said, have become more “creative,” ditching fixed-income investments with their low returns in favor of equities.

Interest rates on fixed-income securities are expected to further fall after the Bangko Sentral ng Pilipinas yesterday slashed its key rates by 25 basis points, bringing its overnight borrowing and lending rates to record-lows of 3.75% and 5.75%, respectively.

In a separate phone interview, Deanno J. Basas, ATR KimEng Asset Management fixed-income investment director, said: “Investors... are generally risky now given the low returns from bonds.”

“There is also an increasing number of individuals who are availing of mutual funds, who see these as vehicle for achieving their medium- to long-term investment goals,” he added.

The number of mutual fund accounts increased by nearly 23% to 143,913 as of June from 117,022 a year ago, PIFA data showed.

Messrs. Basas and de Leon said the growth of the mutual fund industry is also due to various literacy programs being conducted by financial institutions.

“Financial literacy has helped a lot. We notice an increasing number of young individuals attending our seminars and that is a good sign that they are learning about the importance of saving and investing,” Mr. de Leon said. - A Gregorio

[allanmm13]

MORE FILIPINOS have invested in mutual funds, attracted by the strong performance of the stock market, fund managers said.

The overall data below shows most Pinoys are in bond market not on equity (stock market)

Though bulk of net assets were in bond funds (P70.66 billion as of June, up by 22.60% from last year), fund managers noted the significant growth in the net assets in stock funds.

Net assets in stock funds rose by 35.40% to P28.42 billion in the first six months of the year.

In contrast, net assets in balanced funds, which are invested in both bonds and stocks, inched up by 4.86% to P24.17 billion.

Very constrasting figures, approx. >2/3 of total ng MF funds asa bond fund (with is not the stock market). 70.66B + half of 24.17B(from balance fund)

This shows na very conservative pa rin mindset ng MF Pinoy investors.

The number of mutual fund accounts increased by nearly 23% to 143,913 as of June from 117,022 a year ago, PIFA data showed.

Konti pa lang pala tayo as MF investors, vs. 90M Pinoys.


There's another data about registered active trading participants sa PSE. 505,054 accounts as of 2011. Of the those total accounts, 157,535 or 31.2% were considered active. Active accounts are defined as accounts that have traded at least once during the year.

Wala pa sa 1% of Pinoys are using MF or direct stock trading base on above.
Long way to go for many fellow Pinoys to discover the above as an alternative investment vehicle aside from Bank Deposits

Report says, P 5 Trillion - Savings, Checking & Time Deposits while P 1.5 Trillion - Special Deposit Accounts (SDA)

[jenxent]

pero atleat my increase at marami ng gustong mag.invest...

[vbignacio]

bago lang sa akin itong MF, sorry. napanood ko lang accidentally ang show na PISOBILITIES hosted by Francisco J. Colayco.

itanong ko lang kung pwede magdagdag sa mutual fund as you go? kunwari 5k muna tapos dagdag na lang ng dagdag pag nagkapera? allowed po ba yun?

ano bang company ang maire-recommend nyo? salamat...

[rinopepito]

@ vbignacio pd ka magdagdag anytime para maintindihan mo ang mf backread ka lng gaya ng ginagawa ko dami mong matututunan d2 @ madami rin tutulong @sasagot sa tanong mo.

about colayco oks. sya at mga programs nya basa ka pa about him.

ang mf ko sa FAMI (First Metro Assest Management Inc.) one year na so far happy ako sa performance until 2day @ patatagalin ko ng 2 to 5years max. e2 site nila:

http://fami.com.ph/

[vbignacio]

kanina pa ako nagba-backread. salamat sa reply renopepito.

idagdag ko na lang dito: sa FAMI fixed income may nakalagay na rate na 2%. per annum ba yun na kikitain ng pera mong 1,000 to 99,999 na naka invest sa kanila? bakit pag 2,000,000 or higher e .50% na lang?

[rinopepito]

 

[sphinxz]

@vbignacio

sales load po yung nakita mo. for the case of fami.. ito yung front end load meaning. ito yung ikakaltas sa investment amount (whichever bracket it falls) then ang naiwan yun yung actual amount na iiinvest sa fund. take note lang na hindi fixed ang gain/loss ng isang MF. pwedeng kumita pwede ring malugi depends on the market and kung saan ininvest ng fund manager.
ex. 1000 ang iinvest mo, may sales load na 2% so ang actual na iinvest mo ay 980 na lang. ito ang ididivide sa NAVPS. assuming NAVPS that day is 2.00 so upon investing, meron kang 440 na shares.
fast forward...
assuming after 1 year ang NAVPS naging 3.00, then gusto mo nang  iredeem (for simplicity, wala munang back end sales load) so imumultiply mo ngayon yung 440 shares mo by 3.00 which equals 1320. so after 1 year, basically yung 1000 mo na invested amount ay kumita ng 320 pesos.

upon choosing MFs, take note of the history, types of sales load (front, back or both), percent and holding period. iba iba kasi ang pakulo ng mga companies. choose which best fits your needs.

HTH

[pmtmember]

para sa akin maganda ang fami and they are very aggressive. Sana marami pang mga pinoy ma aware about mutual funds

[vbignacio]

ganun po ba? salamat sa info sphinxz...

[magpapakayamanako]

http://fami.com.ph/

sana pakalbo na lang si sir gus cosio, wala na yung nasa harap. anyways, baka un ang nakikita nyang sexy.

thanks. ganun pala ung sales load. paano ung backend load? kung may frontend load.

[sphinxz]

backend load - ito yung fee na ikakaltas sa investment mo upon redeeming. marami ring variations to. merong fixed and meron ding based sa duration of investment. example after 1 year 2%, 2 yrs 1.5%, then after 5 years 0% or wala na. inaapply ito ng financial service company to encourage investors to invest long term.

advantage of FE load, fixed to based sa amount. lahat ng kikitain mo (if meron ) after X amount of time sayo na. advantage of BE load, full amount ang maiinvest sa start pa lang and may possibility na wala pang fee kapag matagal mong iiinvest. disadvantage lang, kapag malaki ang kita eventually, malaki din ang fee na ikakaltas if di ka umabot sa minimum duration na wala nang BE load.

may MFs na FE lang, BE lang, and merong ding both FE and BE.. O_O. pili ka na lang.

one key difference. FE load is based on the amount invested and at the beginning of the investment while BE load is based on the duration and date the investment will be redeemed.

[BatmanBeyond]

backend load - ito yung fee na ikakaltas sa investment mo upon redeeming. marami ring variations to. merong fixed and meron ding based sa duration of investment. example after 1 year 2%, 2 yrs 1.5%, then after 5 years 0% or wala na. inaapply ito ng financial service company to encourage investors to invest long term.

advantage of FE load, fixed to based sa amount. lahat ng kikitain mo (if meron ) after X amount of time sayo na. advantage of BE load, full amount ang maiinvest sa start pa lang and may possibility na wala pang fee kapag matagal mong iiinvest. disadvantage lang, kapag malaki ang kita eventually, malaki din ang fee na ikakaltas if di ka umabot sa minimum duration na wala nang BE load.

may MFs na FE lang, BE lang, and merong ding both FE and BE.. O_O. pili ka na lang.

one key difference. FE load is based on the amount invested and at the beginning of the investment while BE load is based on the duration and date the investment will be redeemed.

I agree with sphinxz. If your plan is not to get it for a certain period of time, then you must put it to a mutual fund company that does not charge back-end load for that time frame. But of course, you will maximize your returns if you're investing it for a long-term.

[subzero]

Hello po! Question lang if for example mag iinvest ako bukas sa mutual fund ng metrobank particularly dun sa SAVE & LEARN FIXED INCOME FUND (SALFIF) nila pwede lang ba ako agad pumunta sa kahit anong branch ng metrobank? Di ba parang nakakahiya yun kung maliit lang yung pera ko halimbawa 10 thousand lang at wala din akong savings accnt sa bank na yun? Sana may sumagot thanks in advance