{"id":5182,"date":"2022-02-23T16:11:06","date_gmt":"2022-02-23T08:11:06","guid":{"rendered":"https:\/\/www.investagrams.com\/daily\/?p=5182"},"modified":"2022-02-24T16:15:05","modified_gmt":"2022-02-24T08:15:05","slug":"earn-mutual-funds","status":"publish","type":"post","link":"https:\/\/www.investagrams.com\/daily\/2022\/02\/earn-mutual-funds\/","title":{"rendered":"How To Earn in Mutual Funds"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A<\/span><b> Mutual Fund <\/b><span style=\"font-weight: 400;\">is a type of investment where a pool of cash is<\/span> <span style=\"font-weight: 400;\">collected from many investors and is invested in different tradable assets such as a pool of stocks, bonds, money market, and the like.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mutual Funds are one of the most diversified forms of investment, as funds have no limits when it comes to allocating their assets. More than local companies or Blue Chips stocks we know funds invest in, funds can go as broad as to investing in government securities, bonds, fixed income instruments, money market instruments, and even on global companies across the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the Philippine setting, mutual funds can be invested in the top 30 companies that are listed in the Philippine Stock Exchange. These companies are Jollibee, Meralco, Ayala Land, Inc. and more. Other mutual funds also offer different investment opportunities in bonds, money market, and real estate <\/span><span style=\"font-weight: 400;\">to maximize returns and minimize drawdowns<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, the performance of the said fund will heavily depend on the performance of the overall markets and the fund manager itself.<\/span><\/p>\n<h1><b>How does it work &#8211; What are the benefits of investing in a mutual fund?<\/b><\/h1>\n<p><span style=\"font-weight: 400;\">First of all, investors always have the option to invest in securities by themselves. What sets Mutual Funds more preferable among other investors are the <\/span><i><span style=\"font-weight: 400;\">convenience<\/span><\/i><span style=\"font-weight: 400;\">, <\/span><i><span style=\"font-weight: 400;\">diversification<\/span><\/i><span style=\"font-weight: 400;\">, and <\/span><i><span style=\"font-weight: 400;\">affordability<\/span><\/i><span style=\"font-weight: 400;\"> especially if you don\u2019t plan on actively trading your investment funds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mutual funds are professionally managed by <\/span><b>professional fund managers<\/b><span style=\"font-weight: 400;\"> working to capitalize on market opportunities and generate income for investors. In layman&#8217;s terms, you allow professionals to conduct the necessary in-depth research and fund allocation for your investments.\u00a0<\/span><\/p>\n<h1><i><span style=\"font-weight: 400;\">Pros\u00a0<\/span><\/i><\/h1>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Affordable &#8211; You can invest in Mutual Funds for as low as 50 pesos using the Investa app <\/span><a href=\"https:\/\/www.investa.ph\/\"><span style=\"font-weight: 400;\">https:\/\/www.investa.ph\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Liquidity &#8211; Easy and quick withdrawal of funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Risk &#8211; Although you should never expect a 100% guaranteed return, investing in mutual funds is<\/span><b> less risky<\/b><span style=\"font-weight: 400;\"> than investing in individual stocks due to the diversification of your portfolio.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professionally Managed &#8211; Professionals will manage your portfolio to maximize returns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Less Time Consumption &#8211; Fund managers will perform all the necessary research provided for you.<\/span><\/li>\n<\/ul>\n<h1><i><span style=\"font-weight: 400;\">Cons<\/span><\/i><\/h1>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fees &#8211; Take account the commission fees, interest, and related fees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holding Period &#8211; Holding your funds at a longer period of time will maximize revenue and minimize costs of withdrawal. Withdrawing funds too early may incur larger fees.\u00a0<\/span><\/li>\n<\/ul>\n<h1><b>Factors to Consider in Choosing the Right Mutual Fund for You<\/b><\/h1>\n<p><span style=\"font-weight: 400;\">One of the most common investing principles is to understand your Risk Profile to recognize which fund is right for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note: <\/span><i><span style=\"font-weight: 400;\">Rate of Return<\/span><\/i><span style=\"font-weight: 400;\"> is proportional to <\/span><i><span style=\"font-weight: 400;\">Level of Risk\u00a0<\/span><\/i><\/p>\n<h1><b><i>Conservative Investment (Low risk &#8211; Low Return)<\/i><\/b><\/h1>\n<p><span style=\"font-weight: 400;\">A conservative approach to your mutual fund indicates that the said investment will be focusing more on fixed income securities. These types of securities offer little to no risk, but in return it offers a smaller window of returns in comparison to the Moderate and the Aggressive fund<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h1><b><i>Moderate Risk Investment (Medium Risk &#8211; Medium Return)<\/i><\/b><\/h1>\n<p><span style=\"font-weight: 400;\">A moderate approach to your mutual funds indicates that this said investment will be balanced. It is spread across fixed income securities to high risk assets. The profit factor and the risks involved are in the middle of being steady and erratic, as the name of the fund suggests<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h1><b><i>Aggressive Investment (High Risk &#8211; High Return)<\/i><\/b><\/h1>\n<p><span style=\"font-weight: 400;\">An Aggressive approach to your mutual fund indicates that the said investment will be focusing more on high risk assets. These types of securities offer greater profit potential at the expense of greater risks involved in comparison to the Conservative and the Moderate fund<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h1><b><i>Fund Manager\u00a0<\/i><\/b><\/h1>\n<p><span style=\"font-weight: 400;\">It is necessary to conduct research on the fund manager to fully recognize their investment strategies and outlook on the market. This will help you select a fund that invests in securities that you also believe will bring you attractive returns in the long-term.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For as low as 50 pesos, you can now invest in mutual funds using the new Investa app! Register for free at <\/span><a href=\"https:\/\/www.investa.ph\/\"><span style=\"font-weight: 400;\">https:\/\/www.investa.ph\/<\/span><\/a><\/p>\n<hr \/>\n<p><a href=\"https:\/\/www.investa.ph\/Home\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5189 size-full\" src=\"https:\/\/dailymedia.investagrams.com\/investadaily\/2022\/02\/VTrade-Mobile-copy.jpg\" alt=\"\" width=\"2632\" height=\"1445\" srcset=\"https:\/\/dailymedia.investagrams.com\/investadaily\/2022\/02\/VTrade-Mobile-copy.jpg 2632w, https:\/\/dailymedia.investagrams.com\/investadaily\/2022\/02\/VTrade-Mobile-copy-300x165.jpg 300w, https:\/\/dailymedia.investagrams.com\/investadaily\/2022\/02\/VTrade-Mobile-copy-768x422.jpg 768w, https:\/\/dailymedia.investagrams.com\/investadaily\/2022\/02\/VTrade-Mobile-copy-1024x562.jpg 1024w, https:\/\/dailymedia.investagrams.com\/investadaily\/2022\/02\/VTrade-Mobile-copy-610x335.jpg 610w\" sizes=\"auto, (max-width: 2632px) 100vw, 2632px\" \/><\/a><\/p>\n<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-reaction-buttons\" ><\/div><div style=\"margin-top: 30px; margin-bottom: 50px;\" class=\"sharethis-inline-share-buttons\" ><\/div><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>A Mutual Fund is a type of investment where a pool of cash is collected from many investors and is invested in different tradable assets such as a pool of stocks, bonds, money market, and the like.\u00a0 Mutual Funds are one of the most diversified forms of investment, as funds have no limits when it [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5183,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[36,34],"tags":[],"class_list":["post-5182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to-advice","category-latest-posts"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts\/5182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/comments?post=5182"}],"version-history":[{"count":5,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts\/5182\/revisions"}],"predecessor-version":[{"id":5191,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/posts\/5182\/revisions\/5191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/media\/5183"}],"wp:attachment":[{"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/media?parent=5182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/categories?post=5182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investagrams.com\/daily\/wp-json\/wp\/v2\/tags?post=5182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}