Comments on: Looking for a good investment? Try mutual funds http://loqal.ph/business-and-finance/2010/04/12/looking-for-a-good-investment-try-mutual-funds/ Sat, 21 Apr 2012 05:55:40 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Sphinx http://loqal.ph/business-and-finance/2010/04/12/looking-for-a-good-investment-try-mutual-funds/comment-page-1/#comment-52 Sphinx Sun, 20 Jun 2010 13:51:50 +0000 http://loqal.ph/business-and-finance/?p=486#comment-52 WHY INVEST? To Beat Inflation & Achieve Financial Goals WHERE TO INVEST? Depend on your Investment Goals Short term goal -invest in short term instrument. Long term goal -invest in long term instrument! The RISK-RETURN Trade-off: Low Risk=Low Return; High Risk=High Return. KNOW THE RISK! ROR is dependent on the amount of risk you assume. RISK WHEN CALCULATED BECOMES NO RISK… RISK BECOMES OPPORTUNITY… increase your Intelligence such that it lowers the Risk INVESTMENT GOALS: House, Kid’s Education, Retirement, Car …all long-term, but why most of your investments are in short term instruments? Earn->Spend? or Earn->Save…Save…Save->Spend? Spend kid’s education & retirement today to midnight sale, party, travel, gadgets? BANK SAVING IS NOT INVESTING… money that you can easily withdraw in “small excuse” or false emergencies – gimmick, partying, sale, outing? INVESTING IS A LONG-TERM COMMITMENT TO YOUR GOAL! Investing is not one-time… it’s a habit, a long-term process of put & put, not put & take. - A commitment that you will not touch that money for other purpose! - A commitment to continuously invest… until you get what you want! There are many ways to invest: mutual funds, stocks, bonds, UITF, long-term healthcare, investment in insurance, savings & time deposits, real estate, etc. You name it, & someone will sell it to you. Be careful. When you get into the area of more “sophisticated” investment, you may need some advice & direction in order to make good investment choices. There are basic rules you must consider. Rule #1: If your investment goes into “loanership investments” (savings, time deposits, cash values), your return will be low (1-4%). Rule #2: If your investment go into “ownership investments” (mutual funds, stocks, equities), your return may be as high as 12% or more. There are no guarantees. If you want to maximize your return on investment, you have to accept some risk. If you invest directly in stock market, -You need to gain extensive knowledge in the stock market. You need the time & expertise to select, combine & monitor the stocks in your portfolio. - Know how to analyze which stocks are “good” & which are “bad.” Do you have capability & resources to get the right information before it makes the news? If you get your news from other people or newspaper… you may “buy” or “sale” too late. Managing a stock portfolio is a complex process that is best left to professional fund managers… Utilize a concept of investment that provides professional money management, an investment concept called mutual funds. • Mutual funds are among the most popular financial planning vehicles in the USA. More than 80% of Americans own mutual funds. There are more than 7,300 mutual funds today with a total net asset of more than $7 trillion. • Mutual funds industry in the Philippines is still very small. Very few Filipinos own mutual funds. There are only about 30 mutual funds in the Phils. Mutual fund is an investment company that combines money from individuals & invests in a diversified portfolio of securities. Each investor is a shareholder who buys shares of the fund. Each share represents a proportion of ownership in the fund’s assets. Because hundreds of its shareholders have chosen to pool their money in a given mutual fund, the fund can easily diversify its investments among the stocks & bonds of many companies. MUTUAL FUNDS ARE USUALLY CLASSIFIED INTO: 1. BOND FUND - funds that invest in government securities. 2. STOCKS/EQUITY - funds that invest in a variety of stocks & equities. Aggressive in capital growth –deals with equity investments that are generally blue chips or growth stocks listed & traded on the Philippine Stock Exchange. 3. BALANCED - combines profitability of equity investments & the stability of fixed-income instruments. MUTUAL FUNDS PROVIDE THE FOLLOWING BENEFITS: 1. PROFESSIONAL MANAGEMENT - the most important advantage! • Mutual funds take the stress away from small investors who want to invest in the financial markets. This is because the mutual funds are handled by competent professional fund managers who choose the right investment for them. Investing directly in the stock market is risky. • The sales charge (entry fee) you’ll pay when you first invest is a small price for the security of having team of professionals actively & constantly monitoring the stocks & make the investment decisions. 2. ACCESSIBLE & AFFORDABLE… Easy to buy… Offer wide variety of services to meet shareholders’ need — variety of investment minimums allowing participation at affordable amount. 3. LIQUIDITY… Your money is always available. No need to find a buyer. The fund is always ready to buy back its shares from you. Mutual fund shares can be redeemed and collected within 7 days at the prevailing Net Asset Value per Share (NAVPS). 4. NET OF TAX… Harness the power of tax advantages! 5. DIVERSIFICATION… To help reduce the risks inherent in any investment, a mutual fund carefully selects a diversified portfolio. A diversified investment portfolio that contains a number of different types of investments tends to have a lower level of risk than a portfolio with more similar types of investments. 6. ASSET ALLOCATION… The process of developing a diversified portfolio by mixing different asset classes –such as stocks, bonds, & cash equivalents –in varying proportions to help reduce risk & maximize potential return. 7. MONEY COST AVERAGING… Money cost averaging advocates the investment of a constant money amount, regardless of the price of the investment. Over a period of time, this generally results in a lower purchase price per investment than if the total purchase was made at one time. For more info, attend our Free Wealth Academy series at: IMG-ILOILO WEALTH MANAGEMENT ACADEMY. CLICK THIS LINK FOR OUR SCHEDULES: http://www.img-wealthacademy.com/location/iloilo/ WHY INVEST? To Beat Inflation & Achieve Financial Goals
WHERE TO INVEST? Depend on your Investment Goals
Short term goal -invest in short term instrument. Long term goal -invest in long term instrument!
The RISK-RETURN Trade-off: Low Risk=Low Return; High Risk=High Return.
KNOW THE RISK! ROR is dependent on the amount of risk you assume.
RISK WHEN CALCULATED BECOMES NO RISK…
RISK BECOMES OPPORTUNITY… increase your Intelligence such that it lowers the Risk
INVESTMENT GOALS: House, Kid’s Education, Retirement, Car
…all long-term, but why most of your investments are in short term instruments?
Earn->Spend? or Earn->Save…Save…Save->Spend?
Spend kid’s education & retirement today to midnight sale, party, travel, gadgets?
BANK SAVING IS NOT INVESTING… money that you can easily withdraw in “small excuse” or false emergencies – gimmick, partying, sale, outing?
INVESTING IS A LONG-TERM COMMITMENT TO YOUR GOAL!
Investing is not one-time… it’s a habit, a long-term process of put & put, not put & take.
- A commitment that you will not touch that money for other purpose!
- A commitment to continuously invest… until you get what you want!
There are many ways to invest: mutual funds, stocks, bonds, UITF, long-term healthcare, investment in insurance, savings & time deposits, real estate, etc. You name it, & someone will sell it to you.
Be careful. When you get into the area of more “sophisticated” investment, you may need some advice & direction in order to make good investment choices. There are basic rules you must consider.
Rule #1: If your investment goes into “loanership investments” (savings, time deposits, cash values), your return will be low (1-4%).
Rule #2: If your investment go into “ownership investments” (mutual funds, stocks, equities), your return may be as high as 12% or more. There are no guarantees. If you want to maximize your return on investment, you have to accept some risk.
If you invest directly in stock market,
-You need to gain extensive knowledge in the stock market. You need the time & expertise to select, combine & monitor the stocks in your portfolio.
- Know how to analyze which stocks are “good” & which are “bad.”
Do you have capability & resources to get the right information before it makes the news? If you get your news from other people or newspaper… you may “buy” or “sale” too late.
Managing a stock portfolio is a complex process that is best left to professional fund managers… Utilize a concept of investment that provides professional money management, an investment concept called mutual funds.
• Mutual funds are among the most popular financial planning vehicles in the USA. More than 80% of Americans own mutual funds. There are more than 7,300 mutual funds today with a total net asset of more than $7 trillion.
• Mutual funds industry in the Philippines is still very small. Very few Filipinos own mutual funds. There are only about 30 mutual funds in the Phils.
Mutual fund is an investment company that combines money from individuals & invests in a diversified portfolio of securities.
Each investor is a shareholder who buys shares of the fund.
Each share represents a proportion of ownership in the fund’s assets.
Because hundreds of its shareholders have chosen to pool their money in a given mutual fund, the fund can easily diversify its investments among the stocks & bonds of many companies.
MUTUAL FUNDS ARE USUALLY CLASSIFIED INTO:
1. BOND FUND – funds that invest in government securities.
2. STOCKS/EQUITY – funds that invest in a variety of stocks & equities. Aggressive in capital growth –deals with equity investments that are generally blue chips or growth stocks listed & traded on the Philippine Stock Exchange.
3. BALANCED – combines profitability of equity investments & the stability of fixed-income instruments.

MUTUAL FUNDS PROVIDE THE FOLLOWING BENEFITS:
1. PROFESSIONAL MANAGEMENT – the most important advantage!
• Mutual funds take the stress away from small investors who want to invest in the financial markets. This is because the mutual funds are handled by competent professional fund managers who choose the right investment for them. Investing directly in the stock market is risky.
• The sales charge (entry fee) you’ll pay when you first invest is a small price for the security of having team of professionals actively & constantly monitoring the stocks & make the investment decisions.
2. ACCESSIBLE & AFFORDABLE… Easy to buy… Offer wide variety of services to meet shareholders’ need — variety of investment minimums allowing participation at affordable amount.
3. LIQUIDITY… Your money is always available. No need to find a buyer. The fund is always ready to buy back its shares from you. Mutual fund shares can be redeemed and collected within 7 days at the prevailing Net Asset Value per Share (NAVPS).
4. NET OF TAX… Harness the power of tax advantages!
5. DIVERSIFICATION… To help reduce the risks inherent in any investment, a mutual fund carefully selects a diversified portfolio. A diversified investment portfolio that contains a number of different types of investments tends to have a lower level of risk than a portfolio with more similar types of investments.
6. ASSET ALLOCATION… The process of developing a diversified portfolio by mixing different asset classes –such as stocks, bonds, & cash equivalents –in varying proportions to help reduce risk & maximize potential return.
7. MONEY COST AVERAGING… Money cost averaging advocates the investment of a constant money amount, regardless of the price of the investment. Over a period of time, this generally results in a lower purchase price per investment than if the total purchase was made at one time.

For more info, attend our Free Wealth Academy series at:

IMG-ILOILO WEALTH MANAGEMENT ACADEMY. CLICK THIS LINK FOR OUR SCHEDULES:

http://www.img-wealthacademy.com/location/iloilo/

]]> By: Tyrone | Millionaire Acts http://loqal.ph/business-and-finance/2010/04/12/looking-for-a-good-investment-try-mutual-funds/comment-page-1/#comment-9 Tyrone | Millionaire Acts Mon, 12 Apr 2010 11:05:49 +0000 http://loqal.ph/business-and-finance/?p=486#comment-9 Thanks for linking to my article. :D Thanks for linking to my article. :D

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