Commodity trading typically works in the form of futures, with investors agreeing to purchase a specified amount of a commodity at a specific price. Discover how risky commodities trading can be, and how outside factors make a huge impact, with information from a financial consultant in this free video on investments. Expert: John Pinelli Bio: John Pinelli is a financial representative. Filmmaker: Bing Hugh Series Description: Investing in the stock market is likened to gambling and is not for the faint of heart. Learn about different ways to invest in the stock market with tips from a financial consultant in this free video series on investing.
In the Philippines, a mutual fund is a professionally managed kind of collective investment action that pools money from multitude investors and invests typically in investment vehicles such as stocks, bonds, money market vehicles, other mutual funds and commodities like gold and silver.
The mutual fund is supervised by a fund manager that purchases and sells the fund’s investments in accordance with the fund’s investment objective. In the Philippines, you can buy mutual funds in a mutual fund company. which is monitored by Securities and Exchange Commission (SEC). Mutual fund has many types depending on where the fund will be invested. The list underneath outlines several types of mutual funds in the Philippines you can purchase.
1. Stock/Equity Fund
Stock or equity mutual fund is the most common kind of mutual fund which is a fund invested purely on equities or stocks.
The fund administrator selects stocks that he assured to be advantageous to invest in. This kind of mutual fund is the riskiest out of mutual fund since the performance of this fund rests on the stock exchange but will give you the best earnings. When you purchase equity mutual fund, it is just like investing in stock market secondhand.2. Balanced Fund
Balanced mutual fund is a type of mutual fund invested in stocks and bonds which has less risk in comparison to equity fund. Balanced fund will give you an average earnings of investment.
3. Fixed-Income Fund
Fixed income mutual fund is invested in any instruments that give in steady normal income.
This type of fund has the lowest uncertainty of losing your money because this is not determined by on the stock market but will impart you lesser return than equity or balanced-fund.4. Money Market Fund
Money market fund is a kind of mutual fund spent in short interval debt securities. Money market fund limits loss of investment that may be cause by market, credit and liquidity.
Relying on your investing goals, you can purchase several kinds of mutual funds. Normally, in the Philippines when you apply for a mutual fund account in a mutual fund company, they will issue you a group of questionnaires so that they can learn which mutual fund is preferred for you.
In my case, I purchased Equity and Balanced mutual fund in First Metro Asset Management, Inc. (FAMI), a reputable mutual company in the Philippines. If you want your funds to be at the safest mutual fund, you must pick the fixed income fund, however, it will give you very minimal return.
Bert Tenorio likes writing on personal finance, mutual funds and investing. Some of his articles include money remittance and how to Send Money to Philippines, feel free to visit Financial Management , for free financial management articles on saving, investing and earn money online.
Recommend Different Types of Mutual Funds Topics
Tidak ada komentar:
Posting Komentar