How to Invest in Mutual Fund Shares in the Philippines
Mutual fund is one of the preferred investments accessible presently. When you invest in mutual funds, you will only wait to make your money arise and until the time you need the money you invested. Normally, people invest their money in mutual fund for several reasons like for retirement, university expenses and for emergency fund. In this article you will learn the procedures on how to invest in mutual fund.
Mutual Fund Investment Procedures
1. Get a copy of prospectus of the mutual fund and examine it.
In any kind of investing, you need to study, study and study. So what is a prospectus? In the prospectus, you can learn useful information about the mutual fund and the mutual fund firm. You will know who manages the fund and most valuable, the current and previous performance of mutual fund. You can get a prospectus in the website of mutual fund corporation you like to invest in.
2. Accomplish an account opening form and investment application form of the mutual fund of your option.
When I deposited in mutual fund, I went personally to the office of my mutual fund in Makati. Its very simple, it took merely less than an hour to complete. However, even if you're overseas or in far away places in the Philippines, you can still invest by sending all requirements via post office or private courier. My colleague invested in ALFM even he's in South Korea.
3. Ready all requirements.
a) For individual accounts, ready photocopies of two (2) valid IDs such as company ID, SSS/GSIS ID, Driver's License, Passport or any government ID.
b) For corporate accounts, ready a copy of the preceding: Articles of Incorporation and by-laws SEC Certificate of Registration Secretary's certificate / Board resolution, authorizing the investment Secretary's affirmation on the allotment of ownership/capital stock held by non-Filipino shareholders
4. Go to the office of your mutual fund company to pass your requirements and application papers or you may send it to couriers. It will be better if you can call the mutual fund office so that you may be familiar with other requirements or procedures. Basically, the procedure listed here is common to all mutual fund companies.
5. Send your payment to the mutual company center, or deposit directly to the fund's bank account. If you're paying off through checks, it must be made payable to the fund of your pick.
6. The mutual fund company will issue a receipt and statement of account where you can see the number of shares you bought and its matching net asset value per share (NAVPS).
Basically, opening or purchasing a mutual fund involves cautious study and knowledge of the fund. Examine and investigate first before you invest.
About the Author
Gil Tenorio is a blogger of finance and investments. For more details on mutual funds, stocks and banking such as on how to apply a RCBC savings account, you may visit Financial Management, for more financial management articles that focuses on saving, investments and earn money online.