How to Invest in FAMI Mutual Funds
FOR YOUR STATEMENT OF ACCOUNT EMAIL SOA@FAMI.COM.PH
FOR YOUR CONFIRMATION RECEIPT ON YOUR INVESTMENT EMAIL COR@FAMIL.COM.PH
A mutual fund is a company that pools investors' money to make multiple types of investments, known as the portfolio. Stocks, bonds, and money market funds are all examples of the types of investments that may make up a mutual fund.
The mutual fund is managed by a professional investment manager who buys and sells securities for the most effective growth of the fund. As a mutual fund investor, you become a "shareholder" of the mutual fund company. When there are profits you will earn dividends. When there are losses, your shares will decrease in value.
Mutual funds are, by definition, diversified, meaning they are made up a lot of different investments. That tends to lower your risk (avoiding the old "all of your eggs in one basket" problem).
Because someone else manages them, you don't have to worry about diversifying individual investments yourself or doing your own record keeping. That makes it easier to just buy them and forget about them. That's not always the best strategy, however -- your money is in someone else's hands, after all.
Since the fund manager's compensation is based on how well the fund performs, you can be assured they will work diligently to make sure the fund performs well. Managing their fund is their full-time job!
WHY IS FINANCEPH OFFERING MUTUAL FUNDS?
In our desire to provide the best possible service to our existing and future clients, We do not only offer life insurance products through Insular Life but Mutual Funds so as to give our clients more choices. Moreover, some of our clients who are abroad cannot be able to purchase Investments through Insular Life since the Insurance Commission of the Philippines does not allow financial advisors and clients to sign Insurance Contracts outside of Philippine soil. Although you may encounter financial advisors who offer life insurance to Filipinos even if they signed it abroad, the risk is that the insurance company may not be able to pay you for any claims since the application form was not signed in Philippine soil.
FAMI is ranked the number one mutual fund in terms of return for the year 2010. FAMI's tie up bank is Metrobank. Therefore, you may add additional investments and redeem your investments through Metrobank.
FREQUENTLY ASKED QUESTIONS
Can I lose money in Mutual funds?
Yes, depending on market conditions. The fund manager’s job is ultimately to minimize risks and losses for the shareholder.
How much interest do I get as an investor?
Mutual funds do not give fixed returns. Returns are based on the difference between your buying price and the current NAVPS. Market conditions play a major role in determining the annual returns of mutual funds.
What if the fund manager performs poorly or goes bankrupt?
The share holders simply need to appoint a new fund manager.
What prevents the fund manager from running away with my money?
Mutual Funds are structured in a manner that protects the interest of its shareholders. The fund manager does not have any control over the physical assets of a mutual fund except to make buying and selling decisions. The assets are held by a custodian bank, appointed by the shareholders, who in turn can not transact for these assets.
What happens to my investment if I die?
Your shares in the mutual fund will form part of your estate and will be distributed to your heirs (usually surviving spouse and children) accordingly. These are tax issues involved in this regard.
Can I tell the fund manager what to stocks/bonds buy or sell?
No. The fund managers will follow the investment parameters indicated in the fund’s prospectus.
What’s in it for the fund manager?
Management Fees. The Amount will vary (normally ranging from 1.5% to 3% of the total assets per year).Note that the NAVPS that are published are already net of the management fee that is amortized daily.
Are mutual fund gains taxable?
No. Mutual funds gains are exempted from taxes based on the Comprehensive Tax Reform Program (CTRP). This was done to promote long-term savings in the country.
Where will you invest my money?
Your money will be invested in the shares of the mutual fund of your choice. Mutual funds, on the other hand, are invested in baskets of securities that vary depending on the type of fund. Hence if you choose an equity fund, then you buy shares of a mutual that invests mainly in listed stocks(90% maximum). A bond fund or fixed-income fund, in contrast, invests exclusively on interest bearing instruments. A mutual fund’s investment universe, including restrictions and risks, can be found in the fund’s prospectus.
How long is the maturity period?
Mutual funds do not have maturity periods which means that the shareholders can actually sell their shres in any banking day. Furthermore, mutual funds are required by law to buy back the shares from the shareholders and to release the proceeds of any sale within seven banking days. Most mutual funds however, charge exit fees for short-term investors and this may vary from fund-to-fund. In FAMI’s case, the exit fee is 1% for the investments of less than 6 months. The exit fee is waived after the sixth month.
HOW TO INVEST IN FAMI MUTUAL FUNDS
FAMI allows a minimum investment of P5000 and if you want additional investments, you may do so in P1000s. For example, you can invest P5,000 initially and add a minimum of P1,000 every time you have extra money.
To start investing you must first determine what type of fund you wish to invest in
If you need to withdraw the money in less than 1 year to 3 years - invest in fixed income fund
If you need to withdraw the money in 3 years to 5 years - invest in balanced fund
If you need to withdraw the money in 5 years and up - invest in equity fund
Click here to visit the fami website know more about the different types of fund.
To start investing you may either :
Step 1. Get a copy of the Fund Details and study it. (You may download it here)
Step 2. Download the following documents:
a. Account Opening Form (AOF)
b. Intial Investment Application Form
c. Signature Cards (You may download them here)
Step 3. Print and fill out the forms
Step 4: Scan the forms and email to firstname.lastname@example.org and cc: email@example.com.
Use the subject: ATTN: Belle Pajarillo and Mark Fernandez
This is to ensure that the application forms will be tagged under Mark Fernandez/FinancePH as your financial advisor
Step 5: Wait for FAMI to reply to your email. If FAMI takes long to reply you may text FinancePH at 0905-3462623 so we can request FAMI Head Office to generate your FAMI account number.
Step 6: Once you receive your FAMI account number, submit the requirements below at any Metro Bank Branch and indicate FAMI Pouch Code# 90020
a. Original Copies the documents you emailed: The Account Opening Form (AOF), Initial Investment Form and Signature Cards
b. Photocopy of 1 Valid ID
Step 7. Together with your documents submitted above, use the GREEN PAYMENT SLIP of METRO BANK to make your investment
>> Click here to view sample GREEN PAYMENT SLIP OF METRO BANK
a. If paying through cash, please use your Account Code/FAMI Account Number and fill that in the slip’s SUBSCRIBER/REFERENCE NUMBER Field. (Note: Please put zeros in front of your account number so it becomes an 8-digit number. Example: Client number 12345 should be written as “00012345.”)
b. If paying through checks, make it payable to the Fund of your choice:
- First Metro Save & Learn Equity Fund, Inc.
- First Metro Save & Learn Balanced Fund, Inc.
- First Metro Save & Learn Fixed Income Fund, Inc.
- One Wealthy Nation Fund, Inc.
For OFWs, you may use our remittance channels
Step 8. Text FinancePH at 0905-FINANCE so we can give you an update on when you will receive your confirmation receipt from FAMI. All investors of FAMI Mutual Funds get a confirmation receipt through registered mail.
If you have questions don't hesitate to contact me or directly through my account sales officer.
My Account Sales Officer is Ms. Belle Pajarillo, you may ask questions about your investment by emailing her firstname.lastname@example.org or calling (632) 891 2860. Mention that your agent is Mark Fernandez to facilitate faster pulling out of records.
CLICK HERE FOR THE REDEMPTION OR WITHDRAWAL PROCEDURES
1. I want to join a FinancePH seminar
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