Rising Tiger 1.1 (Mutual Funds)

In my recent post Rising Tiger, I've shared with you on where to invest your money. One of my suggestions was to get a mutual fund. I read the recent post and I felt like it was too technical. So I decided to explain what a mutual fund is in an easier way. Mutual funds, especially equity funds, benefit a lot from our rising economy. So here's something that may help you to understand mutual funds more.

A mutual fund is basically a pool of money from different people. Just like in banks, you earn through interests. But you also earn through shares. These shares have values. You earn more money when your share increases.

There are a few types of mutual funds, here's some of them:

Bond funds. I mentioned Retail treasury bonds(RTB) as one of my suggestions on my Rising Tiger post. In bond funds, they invest in RTB's to gain money. Since RTB's are government issued, bonds are guaranteed.  If you're the type of person who wants a low risk investment, this fund is for you.

Equity funds. These funds invest in the stock market. A growing economy such as ours favors equity funds. *Since stock market is unpredictable, equity funds are said to be high risk.

Balanced funds. This is a combination of bond fund and equity fund. Moderate gain. Moderate risk.

Get a mutual fund that you feel that you are most comfortable. Some mutual fund companies even offers to assess you so you would know what fund suits you better. You can start as low as P5,000. Google search for mutual funds in the Philippines. There are a lot of them! FAMI (a Metrobank group), BPI, Philequity, Sun Life, and Philam just to name a few. I still believe that this is the right time to invest. I would not waste my time encouraging us Med Teks if this would not profit us in the future. Honestly speaking, we Med Teks are not justly compensated. I shared these information because I know that we deserve more. I know that our profession is not all about money, but don't we have the right to be financially competitive as professionals?


Still don't get what a mutual fund is? This video may help you. ;)

Sources: http://mutualfundsphilippines.net/
                http://www.pinoymoneytalk.com/
               http://www.youtube.com/user/PesosAndSense?feature=watch

Like me on Facebook! http://www.facebook.com/MedTek101

Follow me on twitter @BuhayMedTek

Want to gain Financial Freedom??? Follow this link: http://bosanchezmembers.com/amember/go.php?r=15799

Disclaimer: Investments involve substantial risks. Medtek101 and/or the author of MedTek101 does not make any guarantees or promises as to any results obtained from reading this blog. The reader should not make any investment decision without consulting his/her financial advisor or conducting his/her own research.