Wednesday, January 05, 2011

Stock or Equity Mutual Fund

In mutual fund the best way of earning money is investing in stock or equity mutual fund. Judging from my past investment history, I did earn more in equities than in balance or money market fund for the reason that the rise of the price of stocks will carry the NAV upward.

Since 2003 I've been investing in mutual funds and over the years I gravitated to the First Metro Equity Save and Learn Equity Fund and ATR Kim Eng Equity Fund primarily because of their low cost structure, a reasonable initial minimum investment, the availability of performance data in their website and the ease of redeeming the funds.

What I learned over the years is that a Filipino Investor should primarily focused on knowing the consistency of performance of a stock mutual fund company. Do not be impressed with those 1-year, 3-year and 5-year performance tables you see in Business World newspaper everyday.

Here are then my tips for you:

1. Analyzed the stock mutual fund based for its total return for full calendar years .

2. Give more weight for the most recent year's performance than the prior year's because fund grows in size.

3. Check the stocks bought by the mutual fund company through their website if it provides the investment style of growth, core and value classification.

The following are the stock mutual fund available in the Philippines:
ATR KimEng Asia Plus Recovery Fund Inc.** (USD$)
ATR KimEng Equity Opportunity Fund, Inc.
First Metro Save and Learn Equity Fund, Inc.
Philam Strategic Growth Fund, Inc.
Philequity Fund, Inc.
Philequity PSE Index Fund Inc.
Philippine Stock Index Fund Corp. *
Sun Life Prosperity Phil. Equity Fund, Inc.

The best way to start if your interested is to visit their website and compare the funds with each other including their investment style. From then , you are already halfway of having passive income.

My best wishes always,

1 comment:

  1. Anonymous1:38 AM

    Shiena R. Latoreña