I started investing in the stock market in 2016 which I can say is very profitable. But time has been my problem as I become very busy with my profession just like the most of you climbing the corporate ladder. So I decided to invest in something that can help me achieve my target fund of Php 1 Million. In this case, a mutual fund is my best option that will give me decent profits even with my busy schedule. I also wanted to share this experience to you that’s why I made this mutual fund review to give you an idea if it’s really possible.
My Investing Plan
The most popular investment for millennials without argue is purchasing shares in the stock market. But this is not always the best option when it comes to growing your money. Actually, there is a lot to choose from like UITF, FOREX, commodities, futures, bonds, real estate, mutual fund, etc.
Why I Started Investing in Mutual Fund
I’m familiar with peso cost averaging but I want something more diversified just like something I can get from a mutual fund. The fund is managed by fund managers which will not just make my money grow but also look after it during unfavorable market conditions. And the fund is invested in different companies or types of securities thus adding protection to my investment.
I’ve Chosen Index Fund
There are 4 basic types of mutual fund and those are money market, bonds, balanced, and equity. But in my case, I’ve chosen an index fund (falls under the equity-type) because I am a long term investor looking for growth and can take the risk. What I like the most in the fund is the fund management fee is only 1% unlike other types of funds which is 2%.
My Investment Strategy
I opened my mutual fund account last year but never added anything aside from the initial balance of Php 1,000. January 2019, I decided to add at least Php 5,000 per month and I do this religiously not just for capital appreciation but to also establish the habit of investing.
My Road to Php 1 Million in Mutual Fund
Join me as I embark on my journey in achieving Php 1 Million in Mutual Fund. This will include my most updated fund value, how much money I added, and market condition during each month. I will do my best in updating this blog every month.
UPDATE: August 2019
You may think that I missed my investment in June but actually I did not. I just waited for the market to lower a bit so I can maximize the opportunity. Like in stocks, we must buy low and sell high. If the trend will continue then I might increase my monthly investment to Php 10,000 or more. This is clearly the kind of SALE we must take advantage of.
Initial Investment: Php 40,000
Current Fund Value: Php 39,135.95
Gain/Loss: Php 8,64.05
Number of Shares: 38,656
Market Condition: Inflation settled at 1.7% in August which is the lowest in the last 3 years. While the market trend remains indecisive after the Index plummeted from 8300 to 7800 area.
UPDATE: June 2019
I got super busy in May that’s why I wasn’t able to add Php 5,000 to my mutual fund. I was still busy in June but I make it a point to pay my missed payment and added a total of Php 10,000 in June.
The main goal is to get the habit of regularly saving money and investing it to maximize the returns. I might do the auto-debit if I will miss adding investment again and I will teach you how you can also do it with your mutual fund account.
Initial Investment: Php 30,000
Current Fund Value: Php 31,032.70
Gain/Loss: Php 1,032.7
Number of Shares: 29,779
Market Condition: The market has slightly improved due to the improving US-China trade talks.
I already added Php 5,000 per month from January to April and haven’t added yet for the month of May. Here’s my mutual fund invested in the Index Fund.
Initial Investment: Php 20,000
Current Fund Value: Php 20,016.50
Gain/Loss: Php 16.5
Number of Shares: 20,109
Market Condition: The market is currently moving sideways and showing some bearish movements due to the US-China trade war.
I’m thrilled to share to you my investment journey in the mutual fund. I would also share that this is not the only investment I have. I am a fan of diversification that’s why I have my emergency fund, savings, stocks, insurance plan, etc. But just like you, I also wonder if investing in a mutual fund can help me achieve my target fund of Php 1 Million. If you have something to share or ask just feel free to let me know by commenting below. Happy investing 🙂
Federico is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded Sun Life financial advisor with clients ranging from lawyers, doctors, engineers, accountants, business owners, company directors, and OFWs to minimum wage earners had sought advice from him in achieving lifetime financial freedom.