How to Pick the Best Mutual Fund

Mutual fund investment is getting popular in the Philippines recently because many Filipinos now are gaining financial education. We can see it in many trainings and seminars that are being organized around the country involving financial literacy, business ideas, self-motivation and many more.

I have been investing in mutual funds only this year and I begun to learn many sides of investing in mutual funds. In fact, some of the financial gurus and advisers recommend to invest some part of your money in mutual funds by reason of it is professionally managed by experienced investors in stocks, bonds and commodities.

Compared to investing in stocks personally by yourself, investing in mutual funds has smaller risk of losing money because the money you invest in mutual funds are governed by professional investors. If you invest personally in stocks, you may have limited knowledge about the stocks you will buy and you don't know what price you should buy it or sell.

One typical difficulty of newbie investor is selecting the best mutual fund in the market. It is also my problem when I begun to buy mutual fund last January of this year. I don't have relatives or friends that I can question on how to pick the best mutual fund after all no one of them have the experience in investing in mutual funds.

Anyhow, before I purchased my mutual funds, I make it clear that I carefully understand what I am dealing with since it is my money involved. I realized different types of mutual funds that you can purchase in the Philippines. In my research and analysis, I learned how the procedures and benefits of investing in mutual funds.

Some of the suggestions you need to know in choosing the best mutual fund are the following:

1. History of Competent Performance

You can learn the accomplishment of mutual funds in the Philippines by going to ICAP website. It is the association of all mutual fund companies in the Philippines.

2. Supervised by Knowledgeable Fund Managers

In the mutual fund prospectus which you can download from their website, you will know who are the fund managers and their competencies in administering the money of your fund.

3. No or Low Sales Load and Redemption Charge

Every time you buy or invest in mutual funds, you will be charged a sales load usually 0.5 to 2% of the money you will invest. However, several mutual fund companies waived this fee so it will be free to buy mutual funds. Most of the companies do not charge redemption cost after six months time.

4. Ease of Adding Cash reserve

For me this is very valuable since I am employed abroad. Every time I like to buy or beef up my mutual fund investment, I just can do it online using my Metrobank Direct Access. In the bills payment, I can purchase more shares by choosing my mutual fund just like paying utility bills.

5. Good Support and Customer Aid

A customer-oriented company is fast in responding to its clientele request and queries, they are accommodating and helpful to their needs.

Selecting the right mutual funds suited for you is not easy thing to do. You need a sufficient facts to determine where to entrust your money. In order to select the top mutual funds ready for use in your area, you can consider my advice above. It can help you determine which funds to select from.

Bert Tenorio is a personal investment blogger who likes writing on financial management, saving, investing, stocks, mutual funds and make money online. To get more details on Mutual Fund Philippines, you should go Financial Management blog for more articles on financial planning, saving, investing and online money making.