More Questions on Mutual Fund
Mr. Jomel Buico wrote:
- Are you still a broker?
- Thus applying for mebership in mutual funding need to under go to a broker? Why?
- Which company has a good aspect gerading invesment (devident) gain?
- Can you elaborate all the term in mutual funding?
Mr. Jomel, we’ll answer your question per item so that everything will be answered appropriately.
- Are you still a broker?
Yes, I’m still a broker not only of Mutual Funds but also with other Financial Services.
- Thus applying for membership in mutual funding need to under go to a broker? Why?
Applying for a mutual fund is simply like applying for a new account in the bank. You can’t open an atm nor passbook account all by yourself. You have to be guided by a teller or new accounts officer. Same with mutual fund, if you go to any mutual fund company, there will always be someone who will entertain you to process your application.
- Which company has a good aspect regarding invesment dividend gain?
I‘m not sure if I get this question right. You must be asking which mutual fund company will give you the best gain. If that’s the case, we do not know either. We can only based it on their performance. In one of our post Mutual Fund Performance in the 2nd Quarter, you’ll at least get an idea. Based on personal experience, we have our mutual funds in Optima and Phil Equity and soon in Sun Life.
- Can you elaborate all the term in mutual funding?
You can actually refer to our primer on Mutual Funds for this. Everything is discussed in details here “What is Mutual Fund?”
“thus” to “does”
Good morning! I have invested a portion of my savings in a mutual fund in July 2007, which during that time, had hit a high NAVPS. As record shows, it continually plunged to date. This is the first time I tried investing in mutual funds. I am quite worried on what will happen to my savings. My husband wants to pull our investment out but we already incur losses. Please I need your advice on how to handle this situation. Thank you very much.
Ms. Thet, good day! We truly appreciate questions like this coz it gives others knowledge how to deal with problems like this.
To answer your questions, we also need some answers from you.
1. When you invested in 2007, was it a 1 time deal or a continuous on a regular basis savings?
2. Do you want to pull you investments simply because you checked you already incurred losses or you actually needed the fund?
What we usually advise when entering mutual funds is to make your deposits on a regular basis be it monthly, quarterly, semi-annual or annual. You must do this either the market is up or the market is down. And by cost averaging, you won’t loose.
Pulling your investments at this time won’t do any good to any investments. Unless you actually think that the company you invested in won’t make a comeback, then probably you can pull the plug. But if you actually trust in that company, and based on history, it can easily pull itself up, then I strongly suggest you increase your deposits now that the market is down. Doing so would earn you a lot of shares/units for your money.
But if you need your fund for emergency purposes, then that’s another story. But if not, just let it sit there and make additional deposits if you have extra cash.
I’ll try to write an illustration of what I meant by cost averaging in my succeeding posts so that you’ll further appreciate what I mean.
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Hope this advise helps you in a way or another.
i am interested to learn more on mutual fund i would like to invest a small amount of savings from my work in here in Jeddah KSA
thanks
Chris