What are mutual funds?

April 23, 2017

This is part of Mutual Fund Investing series by How to Invest for beginners

"Mutual funds are good safe investments." Imagine ang isang OFW na nagttrabaho abroad, darating ang time na iisipin nyang magretire, at ang karamihan sa kanila ay magbabalak mag-business pag uwi nila sa Pilipinas. Magandang idea ito, pero may risk sa pagtatayo ng business.

90% of all businesses fail in the first 5 years. At 10% lang nung natira ang magsusurvive for the next 5 years. So kung iisipin mo, meron kang 1 out of 10 odds na magiging successful ang business mo.

Hindi magandang odds iyon.

Dahil ito ay pera na na pinaghirapan mo at may possibilidad na mawala, kaya kadalasan, ang mga OFW after mag fail sa negosyo, babalik ulit abroad.

Hindi naman kailangan maging ganito ang kapalaran ng lahat ng OFW. May mas magandang paraan.

So, instead na magtayo ka ng negosyo, bakit di ka na lang bumili ng negosyo na nakapagsurvive na more than 10 years? Yung mga institution na sa industriya nila at may possibilidad na magtagal pa kahit wala na tayo. Sa mga ganitong businesses, wala na yung risk sa pagtatayo ng negosyo dahil established na sila. Ang tinutukoy ko ay pagbili ng mga negosyo tulad ng SM, Jollibee, Meralco, PLDT, Globe at iba pa. Hanggang kelan ba magtatagal yang mga kumpanya na yan? Probably forever. At pwede mo pa ipamana sa iyong mga anak. At hindi mo kailangan i-manage dahil ibang tao na ang magmamanage nyan para sayo.

Hindi ba mas magandang strategy yun?

Iyan ang mutual funds.

Ang mutual funds ay isang investment na kung saan ang pera mo ay gagamitin para ipambili ng mga kumpanya sa stock market. Ikaw ay nagiging isang shareholder ng mga kumpanya, at magiging entitled sa mga profits nito.

Pero Wayne, hindi ba expensive ang mga companies na binanggit mo? Pano ko mabibili yun kung ang na-sasave ko lang kada buwan ay nasa 5,000.

Magandang tanong yan. Iyan ang kagandahan ng Mutual Funds. Ang word na "Mutual" kung titingnan natin sa dictionary ay ibig sabihin "held in common by two or more parties". Ibig sabihin, ma-aafford mo ang mga companies na yan ay dahil may iba pang investor na tulad mo na may commong interest, maliit lang din ang kanilang investment, pero nais din nila maginvest. So yung pera mo, pera nila at nang iba pang investor ay pagsasama-samahin para makabuo ng isang "Fund" pambili ng mga kumpanya. Ok di ba?

Sa susunod na lesson, pag uusapan naten kung bakit maganda mag-invest sa mutual funds. Paguusapan naten ang mga advantages at disadvantages.

Watch our short video explaining mutual funds.

About the author

Wayne quit his engineering job in 2009 to pursue investing. He is now a bum stock investor managing his own money. He wants to teach other people how to invest. How long before he quit is still left unknown.

Comments

$plurge! April 24, 2017 05:57:02

Good day sir,first of all hands down to all your vids.its easy to digest and concise. Ive been binge watching your vids and posts and so far it gives me an overview.actually morethan that. My question is this ,after reading this ive decided to go with the stocks and to put on "etf"(rememeber what you told on indexing strategy by w. Buffet). Im not ditching the mutual fund but stocks(etf) makes more sense on me personally. Can i go with the etf using peso cost averaging?or it will give me much yield if i just put all the money that i could save per month?cause you know when youre really planning to earn for the future you could always beat youre baseline savings per month.im just curious. Thanks

$plurge! April 24, 2017 06:00:21

Also if you can enlightened us about the different strategies . Like the peso cost averaging and other stuff. Hope youll never lose a grit to continue these things cause its really helping a lot of people -financially wise. More power to you sir.

Wayne April 24, 2017 08:22:08

@$plurge! thanks for the kind words. yes we will get to tackle those strategies. Not just peso cost averaging, but other strategies too.

about your question, yes, etf is good. You can make it as your "savings" account. where you can put your savings into it.

$plurge! April 24, 2017 02:28:23

Thanks sir for answering my queries.will keep in track with your latest vid.more power.

Wayne April 25, 2017 01:27:08

thank you for the support.

JEI April 29, 2017 06:40:26

Videos are simply great! Best ABC learning strategy.

Login or register to comment.

Join other investors

Watch investing videos, play investing games and practice your stock investing strategies. Join other investors just like you.

Join

Facebook group

Let's talk about investing. Join our facebook group.

Top Investors

  1. JEI 12.78%
  2. dondon 11.72%
  3. Anonymous 7.48%
  4. jason1992 7.32%
  5. tortle24 7.17%
  6. MADZ 6.86%
  7. Anonymous 6.74%
  8. cocong 6.46%
  9. Anonymous 6.43%
  10. Sabi 6.31%

Comments