PIME 004: Everything You Need to Know in Investing in Mutual Funds in the Philippines – Q&A Part 2

In this session, we continue to talk about the frequently asked questions that I receive from different Filipinos around the world regarding the subject of Investing in Mutual Funds in the Philippines.

If you missed the first part of this series, you can just visit Pinoy Investing Made Easy Podcast No. 3 so you can have a solid base in understanding this session.

Here are the questions that I’ve tried to answer with the hope of further strengthening your knowledge about mutual funds.

  • How much do I need to open a Mutual Fund account?
  • Am I required to make additional investments every month in my mutual fund investment?
  • Can OFWs open a mutual fund account even if they are still out of the country?
  • How will I know which mutual fund company to choose?
  • What are the charges/fees involved in investing in Mutual Funds?

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In this podcast, we’ve mentioned the following links:

 

PIME 003: Everything You Need to Know in Investing in Mutual Funds in the Philippines – Q&A

In this session, we talk about the frequently asked questions in investing in mutual funds herein the Philippines.

This session is for you if:

  • You haven’t heard anything yet with mutual funds but are open to learning new things that could benefit you and your family.
  • You are considering to invest in mutual funds but very apprehensive to start because of fear due to lack of knowledge
  • You have already started but hungry to obtain deeper knowledge about mutual funds so you can take advantage of your investment and make the most out of it.

This session is the first of the series of podcasts that will tackle the frequently asked questions that I have encountered while talking about Mutual Funds for the last 5 years through my blog MutualFundPhilippines.com.

For this part 1, we were able to answer the following questions:

  1. What are Mutual Funds?
  2. How does it work?
  3. Can I instruct the fund manager on where I want my money to be invested?
  4. How can I make money from Mutual Funds?
  5. Why do the price per share of Mutual Funds (NAVPS) increase or decrease?
  6. How can I start investing in Mutual Funds?

Here are the links mentioned in this podcast session:

  • Steps on how to invest in mutual funds in the Philippines (here)
  • Philippine Investment Funds Association (PIFA) – www.PIFA.com.ph

For the continuation of this series, you may check out Session No. 4 for more questions answered in a very detailed manner.

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PIME 002: Where to Start Your Journey to Financial Independence?

Starting something always feel difficult and uncomfortable. That’s same for any life experience as it is in money.

In this session, we’ve tackled the first things that we need to understand and accept before really taking the road to financial independence.

Busting the myth: “Money is the root of evil”

Blaming money for most terrible things that happen in life is one of our favourite excuse in failing to manage it correctly. After all, most of us believe that Money is the root of evil.

Contrary that, we have to understand that money is just a tool that does not have life on its own. It is whom who use it has the morality of being good or bad – it us, people.

It is about being a good or a bad person, not a good or a bad money.

In this session, I compared money to a knife.

A knife is a tool often used in cooking our meals – used in cutting meat, chopping vegetables, etc… However, that same knife is used by some people to commit murder and some use it in threatening other people.

Again, there are good and bad people, not good and bad things (money).

The Pillars of Financial Foundation

Once we have accepted that money is just a tool. The next best step is to educate ourselves on how to manage it and how to make it work for us, and not against us (debts).

I. Build an Emergency Fund

We have a habit of giving our own definition of emergencies. The need to buy a luxury bag that is on a DISCOUNT is not an emergency!

Emergency fund aims to safeguard your investments by being the second line of defence in case emergencies happen – the REAL emergencies. I’ve mentioned “second line of defence” since insurance are really the first line defence.

As a rule of thumb, we have to keep at least 3 to 6 months worth of our monthly expenses.

II. Get Protection through Insurance (Life, health, and the necessary non-life)

Insurance stands as our first line of defence to Financial Stress.

During time of need, say you will be hospitalized, or in a vehicular accident, what comes first thing to mind? Insurance, definitely.

Insurance protects us from spending a huge chunk of money during sickness, accidents, and other life’s contingencies. It protects our emergency fund from being spent, avoiding any unnecessary financial stress in the process.

Once both insurance and emergency funds are in place, you’re now ready to invest.

III. Make Money Work for you by Investing

Investments aid us in making our money work for us. We worked so hard to earn money. It’s just right to make money work for us, real hard.

There are various forms of investments. We can invest in our own business, stocks, mutual funds, etc…

Let’s discuss them in future sessions.

IV. Prepare for transferring wealth (Legacy)

After accumulating these wealth, at one point in our lives, we have to transfer them to our heirs/loved ones. If transferring wealth is just as easy as abc, then there’s no need to prepare.

But this is a complex aspect of personal finance, especially if the government is involved.

In the future sessions, let’s talk about Estate Tax.

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PIME 001: Welcome to the Pinoy Investing Made Easy Podcast

Pinoy Investing Made Easy

Welcome to the very first episode of Pinoy Investing Made Easy Podcast. Yehey!

For eight (8) years, I’ve been sharing a lot of things that I know and things that I continue to learn through articles (blog posts).

I’ve been contemplating to add a new medium in sharing my knowledge that could benefit my readers. After a long thinking and self-convincing, I’m publishing my very first podcast. 🙂

So, what’s Pinoy Investing Made Easy Podcast all about?

Well, check it out by hitting the play button! 🙂

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