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Investing In Mutual Funds for Beginners


As you journey towards Financial freedom, you will soon realize that your regular bank savings account will not be enough. Sooner or later you will look for other investment vehicles to grow your money. The stock market is one option but it requires knowledge and skills to play the game properly.


As you learn the ropes of the stock market, the best way to grow your money is through Mutual Funds.

Investing In Mutual Funds for Beginners
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What Is a Mutual Fund?


It is an investment vehicle that gathers money from many investors and invest it in bonds, equities, money market, and other form securities. A mutual fund is one of the most easily accessible investment option for the common man, as it offers the opportunity of investment diversification, and is managed by professional fund managers at a relatively low cost.

What Are the Types of Mutual Fund?


There are many types of mutual funds, but it can be categorized mostly into 4 categories:

  • Money Market Fund
  • Stock or Equity Fund
  • Balanced Fund
  • Bond Fund


What Is a Money Market Mutual Fund?

A low-risk and short-term investment that is catered for older investors who is more concerned about the safety of their capital than its growth. Think of it as a savings/time deposit account but is earning a very much higher interests.

Money Market Funds are very safe but their long term earnings are much lower compared to Bond and Stock Funds.

What Is an Equity Fund?

Also known as a Stock Fund because the money pool is invested mostly in the stock market. This investment vehicle is high risk but offers high profitability.

What Is a Balanced Fund?

It is an investment option where the money pool is invested in both Stocks and Bonds. The fund manager will allocate a certain percentage (usually 60% in stocks and 40% in bonds). This is to leverage the high profitability of Stocks while balancing/reducing the risks via Bonds.

What Is a Bond Fund?

The money pool is invested in debt obligations. The fund company will lend money to the government (government bonds) and corporations (corporate bonds) for a specific period of time. In exchange, the borrower will pay interest until the the maturity date. Once it reaches the maturity date, the lender will then receive the original investment or loan amount.

The Best Mutual Funds to Invest Offered by Mutual Fund Companies


Money Market Mutual Funds

  • ALFM Money Market Fund, Inc.
  • First Metro Save and Learn Money Market Fund, Inc.
  • Philam Managed Income Fund, Inc.
  • Sun Life Prosperity Money Market Fund, Inc.

Equity Mutual Funds

  • ALFM Growth Fund, Inc.
  • ATRAM Alpha Opportunity Fund, Inc.
  • ATRAM Philippine Equity Opportunity Fund, Inc.
  • Climbs Share Capital Equity Investment Fund Corp.
  • First Metro Consumer Fund on MSCI Phils. IMI, Inc.
  • First Metro Save and Learn Equity Fund,Inc.
  • First Metro Save and Learn Philippine Index Fund, Inc.
  • MBG Equity Investment Fund, Inc.
  • PAMI Equity Index Fund, Inc.
  • Philam Strategic Growth Fund, Inc.
  • Philequity Dividend Yield Fund, Inc.
  • Philequity Fund, Inc.
  • Philequity MSCI Philippine Index Fund, Inc.
  • Philequity PSE Index Fund Inc.
  • Philippine Stock Index Fund Corp.
  • Soldivo Strategic Growth Fund, Inc.
  • Sun Life Prosperity Philippine Equity Fund, Inc.
  • Sun Life Prosperity Philippine Stock Index Fund, Inc.
  • United Fund, Inc.

Balanced Mutual Funds

  • ATRAM Dynamic Allocation Fund, Inc.
  • ATRAM Philippine Balanced Fund, Inc.
  • First Metro Save and Learn Balanced Fund Inc.
  • Grepalife Balanced Fund Corporation
  • NCM Mutual Fund of the Phils., Inc.
  • PAMI Horizon Fund, Inc.
  • Philam Fund, Inc.
  • Solidaritas Fund, Inc.
  • Sun Life of Canada Prosperity Balanced Fund, Inc.
  • Sun Life Prosperity Achiever Fund 2028, Inc.
  • Sun Life Prosperity Achiever Fund 2038, Inc.
  • Sun Life Prosperity Achiever Fund 2048, Inc.
  • Sun Life Prosperity Dynamic Fund, Inc.

Bond Mutual Funds

  • ALFM Peso Bond Fund, Inc.
  • ATRAM Corporate Bond Fund, Inc.
  • Cocolife Fixed Income Fund, Inc.
  • Ekklesia Mutual Fund Inc.
  • First Metro Save and Learn Fixed Income Fund,Inc.
  • Grepalife Fixed Income Fund Corp.
  • Philam Bond Fund, Inc.
  • Philequity Peso Bond Fund, Inc.
  • Soldivo Bond Fund, Inc.
  • Sun Life of Canada Prosperity Bond Fund, Inc.
  • Sun Life Prosperity GS Fund, Inc.

How Do I Know If What Kind of Mutual Fund Is Right for Me?


Choosing the right mutual fund investment depends on two factors namely; Your Risk Appetite and Time Horizon.

Mutual Fund Risk and Reward Table (COLFinancial)



“Do not save what is left after spending; instead spend what is left after saving.”
Warren Buffet



- The Affluent Perspective by Ælfræd "Elf Counsel"


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