Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds. The value of the mutual fund company depends on the performance of the securities it decides to buy. So, when you buy a unit or share of a mutual fund, you are buying the performance of its portfolio or, more precisely, a part of the portfolio's value. Investing in a share of a mutual fund is different from investing in shares of stock. Unlike stock, mutual fund shares do not give its holders any voting rights. A share of a mutual fund represents investments in many different stocks (or other securities) instead of just one holding.
*Affordable
Mutual Funds have a low capital Requirement. Initial investment starts
At 1000 pesos and additional Investment starts at 20 pesos.
*Convenience
All the investors have to do is to invest regularly no need for the investors to time the market and watch prices every now and then.
Liquidity
Mutual Fund investors can redeem their investments within 5-7 banking
days after a redemption notice is requested.
Professional Management
Mutual funds are actively managed by a professional who constantly monitors the fund’s portfolio. In addition, the manager can devote more time in selecting investments than a retail investor would.
Safety
Mutual funds are highly Regulated by the Securities and Exhange
Commission under the Investment Company Act and its implementing rules.Mutual Fund companies are regularly audited by an Independent
auditor. And the assets of the mutual fund are held by a third-party custodian bank.