PAMA
With a growing economy and as more and more Filipinos earn more, investment opportunities have become very appealing to those who want to further grow their hard-earned money faster than just depositing them in banks.
For those who want to start their investments small but gain big, the mutual fund is the way to go, according to the Philippine Investment Funds Association Inc. (Pifa), a group composed of 10 fund management companies behind 53 member funds.
“Mutual funds have been gaining reception since Filipinos have become more financially aware,” says Pifa chair Valerie N. Pama.
“Though savings accounts and time deposits had been the favorite ‘investment’ of Filipinos in the earlier years, more and more of us have discovered that there are other attractive investments such as mutual funds. It is a realization that the money we save can actually start to earn for us,” she adds.
BUSINESS
BUSINESS
BUSINESS
So what exactly are mutual funds? Pifa defines a mutual fund as “an investment company that pools the funds of many individual and institutional investors to form a massive asset base.”
This is how it works: The combined assets are put in the hands of a professional fund manager, who then seeks lucrative security—bonds and stocks—investments. The full-time fund manager maintains the investments while also making sure that these comprise a diverse portfolio.
