Mutual Funds is one of the many investment vehicles where your hard earned money grow passively. Let me put this way, your money grows while you sleep. Your return of investment will beat the inflation rate (2.2% in April 2015).
Mutual Funds can be an effective way to save for important goals of your life such as retirement or your child college education.
My wife and I are currently investing in mutual funds. Thanks to the Canadian Government (yes, we migrated here in 2013), they offer an Registered Education Savings Plan (RESP) for your kids. Most of the financial institutions here will give you an option to register your child’s RESP to an mutual funds which is the better option because your child’s college fund will grow passively and Canadian Government will also add a certain amount every month as long as you contribute.
What is Mutual Funds? Why Should We Invest In Mutual Funds?
According to wikipedia: A mutual fund is a type of professionally managed investment fund that pools money from many investors to purchase securities. While there is no legal definition of the term “mutual fund”, it is most commonly applied only to those collective investment vehicles that are regulated and sold to the general public. They are sometimes referred to as “investment companies” or “registered investment companies”. Hedge funds are not mutual funds, primarily because they cannot be sold to the general public.
Watch the video below to learn more about Mutual Funds!
You can also watch ANC On The Money: Growing Your Money Via Mutual Funds
Now that you know about Mutual Funds, it’s time for you to decide and act now. Here’s the steps you need to do before you invest in any vehicles, review your finances, Pay your debts (if you have one), save for an emergency funds (3-6 months of your expenses), open a Mutual Funds and invest every month to take advantage the peso-cost-averaging!
You can visit Philequity Management and learn how to open a mutual funds in the Philippines!