OFWs Guide to Mutual Fund Investing in the Philippines

Mutual Funds are one of the best investments a potential investor can dive in if he/she lacks the ability or time or both to monitor and study the seemingly complicated world of stock market investing.

The good news is, investment application for mutual fund investing is very easy – well, that is if you are based here in the Philippines. It’s another story for those outside the Philippines.

I’m based in Dubai, Saudi Arabia, Singapore, America, and other parts of the world, how can I start my mutual fund investing adventure?

Potential clients always asks me how investing in mutual funds can work for them since they are out of the country, and will be returning back not so soon. Good thing, I’ve set up the Live Chat Feature (you can find at the lower right corner of our website), I was able to have some chitchat with them, and was able to provide them some enlightenment. Said enough, I though of creating this article to further give the details on how that can be done.

The Truth: OFWs Guide to Mutual Fund Investing in the Philippines

 

    1. Identify what Mutual Fund you need. There are only a few active Mutual Funds here in the Philippines- 46 as of this date of writing. These mutual funds basically falls into four categories – Equity, Bond, Balanced and Money Market Funds.I have published a matrix wherein you can compare funds managed by FAMI, PAMI, and PEMI. You may used it as a tool for your assessment. You can find it here.As a recommendation, I advise our clients to invest in mutual fund companies that accepts additional investments via internet banking. Please check the payment options page to see what banks the Mutual Fund companies are using.
    2. Download and fill-up the required forms.For all of the Mutual Fund Management Companies MFPis affiliated in, you can view the requirements and download the forms here:
    3. Submit the RequirementsAll documents for initial investment application should be submitted to the mutual fund companies, or to us (for funds managed by PAMI, PEMI, and FAMI). Well, this could really seem to be a challenge for OFWs. Is it? Here are the options:If you have a relative, a friend, or anyone you know who will be going back to the Philippines soon, you may opt to ask them a favor of carrying the documents with them, and deliver everything in the mutual fund company’s office, or ours, whichever is applicable.Or, you may sacrifice a little cost by asking a courier like DHL, Fedex, etc.. and deliver the documents to the mutual fund company’s address. Need not to worry, you’ll only have to do this once. For the succeeding investments, a scanned copy of documents is enough.

Recap:

This is how your investing strategy will work. You’ll be selecting a mutual fund company where you can transact via internet banking. Then, you’ll complete all the requirements and submit everything here in the Philippines –  to whatever option that you seemed fit. Then voila, once your application is accepted, it’ll take at most, one business day before your account is created.

In cases where you would want to make additional investments, you can always use the internet banking service of your bank and pay or make fund transfers to the account of the mutual fund company.

If this article does not completely clarify your concerns, please drop a comment, or shoot us an email.

 

HAPPY INVESTING!!!

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  • mutual fund philippines
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  • Estelie

    Hi nick,
    Anong ibig sabihin ng 2008 performance return na -30%? ibig sabihin lang ba nito babawasan nila yung pera ko ng 30%?

    • Nick Raquel

      During 2008, nagkaroon ng stock market crash. It resulted to the decrease of value on most investments. The 30% pertains to a decline in comparison to the value of your investment during the previous year, 2007.

      Although a loss, this is not yet an actual loss hangga’t di mo pa nireredeem ang investment mo. This is popularly called as “Paper Loss”.

      This is the reason why it is recommended to invest in the long term because markets naturally fluctuates. What helps balance those fluctuation is time.

  • Estelie

    Hi nick, what is NAVPS in simple terms, is it better kung mataas siya?

    • Nick Raquel

      Hi Estelie, NAVPS pertain sa price ng mutual fund shares mo. It changes on a day by day basis. In investing in mutual fund, your main goal is to sell your shares at a NAVPS higher than when you bought it.

  • Marlon Carlos

    Hi,

    I would like to invest on mutual funds. However I am currently out of the Philippines as I am a OFW. I am really interested to start investing, however I am quite hesitant on the procedure to open account while I’m abroad. Can you please assist me on this?

    Looking forward for your positive feedback.

    Regards,

  • Aimber Mars

    hello nick if i open an account to fami but i dont hve bank account in philippines is that ok if i used my sister bank account?

    • Nick Raquel

      Yes Aimber, that would be fine. You don’t actually need a bank account to open an investment account in FAMI.

  • Vilma

    hi Nick,
    kindly help me I just wanted to open a mutual fund in fami.please give some info.tnx

  • joan

    Hello Nick,
    Pls. Help,,,, I want to invest in the mutual fund and I’m here in Hk. I already inquired in the bank, BPI, Metro Bank and BDO but they said I need to go home in the Phil. to make the transaction. Any advice? …. Matagal pa ano siguro uuwi maybe after 2 years pa but gusto ko nang mag umpiisang mag invest… Salamat…

    • Nick Raquel

      Hi Joan, yes possible naman yan. All you have to do is complete the documents and submit it to the mutual fund companies.

      I suggest you post each of your questions separately in the link below para I can answer them in great detail

      http://ask.mutualfundphilippines.com

    • Damian

      Hi Joan,
      Actually dito sa website na ito ako natuto magstart ng MF with Nick’s help. Just look the website of FAMI below at yung mga requirement eh nandyan sa website nila. Actually with their announcement last March 18,2013, theres no need to submit your original application forms and deposit slips at ang maganda yung CONFIRMATION RECEIPT ay hindi na kailangan pag iwiwithdraw mo na mga funds mo. Email mo lang sa kanila mga documents at kinabukasan credited na sa iyo mga mga additional investments mo..

      http://fami.com.ph/?page_id=2906

      • joan

        Damian,
        Thank you so much…. ! Its a big help for me sa mga katulad ko na nag uumpisaa lng sa pag invest.

      • Nick Raquel

        Thanks Damian for assisting joan. It really feels great seeing you guys returning and helping others out.

  • Chin Chin

    If you want to learn more on how to invest in the stock market, you can check PSE’s Market education website http://www.pseacademy.com.ph

  • Bags

    Hi nick,
    I am an ofw in jeddah, ksa. I already have a balanced mutual fund since 1997 and i am planning of investing in other funds. I am considering diversifying by subscribing to one of following, fami or pami equity fund, col stock market, or investing in a cooperative. My investment horizon is 5 to 10 yrs. i have the funds and ready to invest but cannot decide which of the above i should invest in. I am currently studying all of the above and hopefully be able to decide asap.

    I would greatly appreciate if you can enlighten me and make your recommendations.

    Thank you and More power.

    • Nick Raquel

      I see that you are inclined investing in equities.

      If you find it comfortable to just invest in mutual funds, you may drop the option on opening an online trading account with COL. You may just choose from PAMI and FAMI.

      PAMI’s sales load is a bit higher compared to FAMI, you may want to take that into consideration. Of course, you should always consider where you will be more comfortable investing.

      Hope this helps :)

  • https://www.google.com/profiles/100708276534165089911 Luminous wave

    hi Nickraquel im also interested to Tanjinky asking to you pls sent me also what you sent to Tanjinky, im also here in taiwan thanks…

    • Nick Raquel

      Hi Luminous,

      Please contact me here:

      http://mutualfundphilippines.com/contact-us/

      Regards,

      Nick

      • aylmer umbao

        hi nick.. I am in the process of applying an account with FAMI (equity fund). what do you think is the best way of investing to FAMI; investing a big amount of money for once because of the strong performance of our stock market for the coming years or still to follow the money cost averaging strategy?my goal is to withdraw also my investment maybe after 5 years..

        • Nick Raquel

          Both strategy would be ok eh, given the optimal circumstances. Pero kung ako yan, what I’ll do is make is ikakalat ko ung investments ko in different time periods and/or different price levels (cost averaging). This will somehow help me diversify further my investment price.

          Hope this helps :) let me know if you have further questions.

          Nick

          • Estelie

            Hi nick, what do you mean by “ikakalat ko ung investments ko in different time periods and/or different price levels (cost averaging)”. Bakit need to invest on different time periods? So you mean kung may 100k ka, dapat iinvest mo siya for example 50k muna today then after several months 50k ulit?

  • eden

    hi,
    I’m a seaman and a beginner in investing,I want to know on how and what is the best investment for me.

    • Nick Raquel

      Hi Eden, what exactly do you want to know about investing?

  • Joy Tarape

    Hi nick! Im so much interested investing in the Mutual Fund. Im currently based in spain. I went to Metrobank Barcelona but they do not cater such product. Please advice me what to do. Thank u!

  • markie1925

    Hi nick, im interested also in joining the mutual funds. i am OFW and i want to save as soon as i can. please advise. you can email me in my personal mail: mkimik2000@yahoo.com, looking forward for your advise. thanks

  • Maricel

    Hi Nick, i am an OFW based in UAE and am planning to invest in FAMI but still thinking what is the best option. Is it better to invest directly to FAMI or thru a broker like IMG or to ask for your assistance. Please help me to decide. I am a little bit hesitant to invest thru IMG coz maybe their membership is high. If i will ask for your assistance, what are the fees to pay? or if directly to FAMI, maybe they will just ignore my application coz i have emailed to them on how to invest but i didnt get a reply. Hope you can help me.

    • NickRaquel

      Hi Maricel. I can assist you if your uncomfortable with the membership of IMG. I don’t charge anything, or whatsoever. I actually created this blog for OFWs like you.

      Let me know on what stage are you in now, so I’ll know how can I help you.

      Nick

      • Maricel

        Hi Nick, Thank you for the info and it’s good to know that you are not charging anything. Just to confirm, what are the benefits of choosing RSA as an agent, and how does it works to future clients & to mutual fund companies? How does it get paid for the assistance if there is no charge at all?

        • Nick Raquel
          • Maricel

            Hi Nick, the link you’ve shared helps me a lot to answer my question. I am currently filling up the forms for FAMI, and i need your assistance on this.
            1. In the INVESTMENT APPLICATION FORM,
            B. what will i write in Investment Fund if i want to choose equity?
            C. In the Account Name, what will i write? Is it my name? But what will be the account no.? and on Title/ designation, is it like title @ work?
            2. I have TIN# but lose my ID here, and i don’t remember it anymore, is it possible to just leave it blank?
            3. I want to send my application this March, how long will it take to process? How can i receive the confirmation?

  • manuel jose ramirez

    can you please give me an idea regarding mutual funds and to invest because I do not have any idea about mutual funds. and please which one is better for a beginner.

    thank you

  • http://hi, phili adams

    is there any chances that i will loose my invested money in mutual fund?

    • http://nickraquel.com Nick Raquel

      Hi Phil, to simply answer that question, yes it is possible, just like in any other kinds of investments. That’s why understanding an investment instrument is very crucial before diving into it.

  • http://MutualFunds:FAMI Kelly

    Hi,

    Do you have a contact person at FAMI (an email add would be great? Whom I could directly submit my application by courier.

    Thanks and appreciate your help.

    Kelly.

  • mhacky

    i want to invest in mutual funds.. Please help me.. thanks

  • Lou Wess

    Hi!
    I am based here in the UK…I am absolute novice about investing on stock, funds,etc…but I am interested to invest on something I just don’t know how and what.
    Please give me basic tutorial about it. I don’t have bank account in the Phils. as well and I want to open one. Please help.

  • http://MutualFunds Kelly

    Hi Nick,

    I am interested to try FAMI & PEMI, both Equity & Balanced. Thanks for providing the info on how to register.

    However, could you also provide more info on the flow of funds right after the registration. Apologies, but I am so new on these, so would appreciate your help, if you don’t mind.

    Regards,
    Kel

    • http://nickraquel.com Nick Raquel

      Hi Kelly,
      What do you mean by flow of funds?
      Basically, when you invest in mutual funds, your investment will be invested by the fund manager, together with the funds of other investors, either on stocks, bonds, or other fixed income investments. The proportion on how much stocks or bonds that would be included in the portfolio depends on what type of Mutual Fund you will be choosing (Equity, Balanced, or Bond Fund).

      Did I answer your question?

  • Marineth Valdopeña

    hi,

    i wanted to invest my money in mutual funds.i was here in israel for the mean time and by december this year i’m going home for good there in the philippines.how do i begin and where?do i need to go for seminars?

    thank U.

    • http://nickraquel.com Nick Raquel

      Hi Marineth,

      You don’t actually have to attend any seminar to get through this. Just follow the instructions published in this post. If you have questions on how to proceed, just let me know.

      Regards,

      • Marineth Valdopena

        thanks.

  • christa perez

    Hi Nick,

    What are the odds? I am also based in Dubai and have been reading for articles online. Yes I am also interested to invest in Mutual Funds. Do I need to open an account first with metro bank before I could start investing? Sorry. I’m new to this thing.

  • http://www.yahoo.com Cristina Ortiz

    Hi Nick,

    I have seen your posts and the links and really interested to put share in FAMI. I’m currently in Dubai, kindly advise how to proceed? I’m thinking the possibility of opening an account in Metro bank with internet banking then from there i’ll just do the transactions, is this feasible?

    Sincerely,
    Cristina

    • http://nickraquel.com Nick Raquel

      Hi Cristina, yes it’s possible! You may just visit here to see where you can submit your documents http://mutualfundphilippines.com/requirement-submission-procedure/

      You may just send the documents through carriers like DHL, Fedex, or LBC…

      Then for funding your investment, initially, you may ask a family member here in the Philippines to deposit on Metrobank’s account, and to send the original deposit slip to the address given on the link above..

      Then, once your account is set up (with initial investment) you may then use Metrobank’s internet banking to make additional funding to your investments.

      • http://www.yahoo.com Cristina Ortiz

        thanks again nick, truly appreciated.

        • http://nickraquel.com Nick Raquel

          You’re welcome Cristina.. Let me know how I can further assist you.

          Happy Investing!

  • Tanjinky

    hello, am base here in taiwan how can i invest in mutual funds?   , what to do?

    • NickRaquel

      Hi Tanjinky,

      I’ve sent you an email. :)