AN ALTERNATIVE INVESTMENT FOR YOUR MONEY IN 2011

            If you're looking for a safe and an alternative investments for 2011, why don't you try MUTUAL FUNDS. Mutual funds are investment companies that pool money from numerous investors with the same investment objective. Through the issuance of its shares to the public, the pooled funds are then invested by professional fund managers in a diversified portfolio of securities or investment instruments. It is safe because it is highly regulated by the SEC and it has a lot of investment restrictions. It is also affordable because you can already open an account and invest for as low as P5000 and P1000 for your succeeding investments. This is a great way to grow your money and to be able to meet your financial goals in the future. 

What are the benefits of investing in mutual funds?

1. Professional Fund Management - Professional Fund Managers will be handling your money and invest it for you. You can get a FUND FACT SHEET to know where your money is invested

2. Diversification - This eliminates the risk that a company might fold up or the bond issuer to go bankrupt and unable to pay its debts.

3. Asset Allocation - Fund Managers mix different classes of assets to maximize your returns and reduce risk.

4. Liquidity - Your money is always available. No need to find a buyer since the fund is always ready to buy back its shares from you.

5. Compounding - The best feature of a mutual fund because money growth is compounded meaning your interest gains interest with the principal continuously.

These are just some of the benefits in investing in Mutual Funds. But remember that any kind of investment has a corresponding risk. Generally the higher the return, the higher the risk.

But before you invest take time to learn the different types of funds and how each can fit your investment appetite. To know more about mutual funds, feel free to contact me. I hope to be able to help in any way i can. 

Watch out for my next blog post as I discuss the types of mutual funds you can invest in as well as my recommended fund for your needs.