I’ve got a very interesting email from one of you guys, and I’ve decided to share my response here. This is the email.
Hi Nick,
Among the three (FAMI, PAMI & PEMI), which do you think is the best? Please also take into consideration the costs involved, such as entry, exit fees, sales load, etc. Currently, I have direct investments in stocks, I’m thinking of diversifying through MF. Thanks and God Bless.
Best Regards,
Junar
First of all, I think I’m blessed having an opportunity to be answering questions from my readers, and hopefully, I’ve enlightened you guys, one way or another. Thank you for keeping my inbox busy.
I would want to answer your question with a few introduction.
“Best” is a subjective description that can be interpreted differently by different ears (or eyes) hearing or reading it. It’s like choosing our girlfriend, wife, friends, or even work. We know we have chosen the best, but we are not pointing at the same persons, are we? 
The point being is that we have different considerations in choosing the best. All we have to do is identify those factors and considerations.
The question is specific though. You’re asking what is the best mutual fund for “me”, making my intro irrelevant. Darn!
Alright, another thing. I just want us to be on the same track before I answer your question.
Sales load are fees paid by an investor in investing in mutual funds. There are several types. There are funds that charge sales load upon purchase of investment. These are what we call entry fees. There are also funds that charge sales load upon redemption. These are called exit fees.
And lastly, the common practice among the three Mutual Fund Management Companies that you have mentioned, are the type of funds that charge both entry fees and exit fees. However, on these types of funds, the exit fees will be charged only when you redeem your investment during a certain period called holding period. But when redemption is done after the holding period, no exit fee will be charged.
Among the three (FAMI, PAMI & PEMI), which do you think is the best?
I chose funds managed by First Metro Asset Management, Inc. (FAMI), and, as I have said earlier, I have my unique considerations in choosing such. Let me share you my top 3.
- Convenience. It will be unquestionable. Being part of the Metrobank Group, reaching and applying for FAMI Save & Learn account is as easy as opening a bank account to any Metrobank branch. All you have to do is visit any branch, and voila, you’re good to go.But that’s not all, I’m just starting. What I’m really enjoying is that you can easily make additional investments through Metrobank’s Internet Banking service (Metrobankdirect). If you’re doing money cost averaging, you can actually set scheduled payments/investments to make sure you won’t forget a thing.
- Low Sales Load. Among the three, FAMI charges the lowest sales load of 2% on minimum investment.
- Performance. FAMI is one of the top performing Mutual Fund Management Company here in the Philippines. It actually doesn’t matter to me if they’re number one or not. For the past five years, they have been performing very well.Although, it is very important to note that one of the best performance consideration is to look on how particular funds perform on the bad years. This will show the maturity and capability of the fund managers.
That’s it. Please do note that your risk profile is one of the most important consideration in investing. Considering a mutual fund reaching the top on performance, a great possibility also exist that the same mutual fund will make the highest lost on bad times. There is always a trade-off on risks and rewards, don’t forget.
And again, what’s best for me, may not always be best for you. Just a friendly reminder
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About Nick Raquel
nick ,
ok din bah if sa philam or sunlife mag invest??? may insurance kc kasama …..di ba ang pami , pemi, at fami wala kasi purely mutual funds lang???
Hi Nick! Reading the tread is like MF 101 for me.
Been searching on and off about what MF company to invest since hearing and reading Mr. Colayco on the benefits of Mutual Fund investment. BINGO!!! I found your article and really it is helpful for those newbies like me! A few questions though.
1. If I invest and refer someone do I have a commission?
2. Aside from MF is there a better investment out there for beginners?
Hi lemor,
Great that you found my blog. Here are my answers to your questions:
1. No, not unless you are affiliated with the mutual fund companies as agents or to other brokers.
2. Aside from MF, you can try looking at UITF. It works similarly with MF but have some differences
Hope this helps,
Nick
Hi Nick,
Kindly update me with clarification.
1. If i intend to invest on stocks direct from PSE with certificates
along with 100k and intend to hold it for long term, similar to
mutual fund. Just as i choose single blue chip company with
my own choice due to my trust, is it advisable?
2. At the same time I have mF- equity run by managers which is
also holding for long terms.
3. What is the difference of income for these options no. 1 & 2.
4. Which is best.
Kindly define best perspective.
Thanks, jude
good day po..tanong ko lang po kung magkano po ang exist fee at management fee pagireredeem na po yung stock..tnx po
Hi Nick,
Thanks for your reply. From your article, it seems like your telling me not to enter into equity yet at this time if im gonna follow Buy low sell high. Anyway, i have one more question though. Recently, i opened a FAMI account. they charge 2% sales load for my initial 10,000 investment. Bakit pag UITF sa bank, it seems na wala naman ganun? or is it hindi ko lang alam? Pls enlighten me. E di everytime mag additional ako sa mutual, may 2% ? If this is the case, would u recommend that i put my investment sa UITF instead?
Hi Nick,
Just want to ask kung ok pa bang pumasok sa equity ngayon considering laging all time high ang stocks? Pano pag nagkaroon ng major correction soon? Or do i wait for that time to come? What if it doesnt happen?
Hi Irene,
That’s good question. Please refer to this article on how I will answer your question:
http://mutualfundphilippines.com/2012/06/mutual-fund-university/when-best-time-invest/
Hello Nick,
Gusto kong mag-invest ng 5-yr,1yr and 30-day…Bali 3kinds yong aplayan ko, poyde bayon? Kong posible, give me some advice on how to do it.Wala ako sa pinas ngayon.Maraming salamat in advance.
Jameson
Pwede yun. If your thinking about mutual funds, you can invest in equity funds for your 5-yr plan, bond funds for your 1 yr plan, and a money market fund for your 30-day plan.
You can still actually send applications even if your out of the country.
You may send shoot me an email so we can further discuss. You may send it here
http://mutualfundphilippines.com/contact-us/
I am a Mutual Fund Representative, You cannot open an mutual fund account if you are out of the country. the date and place of signing must be within the Philippines jurisdiction.
FYI…
Hi Macky,
Would you mind telling us what mutual fund company you’re representing?
As far as experience tells me, a lot of OFWs have done this already
Cheers!
Nick
Hi Nick,
Your point #1 is not true. I walked in to one Metrobank branch in Cebu, they directed me to the FAMI representative. It took several phone calls and trips to make my 1st investment.
kenDi
Just realized that not all Metrobank branch knew how to handle the processing of FAMI investments. In my case, everything went smoothly. But from a comment in our fb page and yours, it seems proving otherwise.
Alternatively, it seems appropriate to coordinate with FAMI first before submitting the documents to Metrobank.
Good Morning Nick,
I already forwarded my investment forms,other requirements as well as my initial investment of 10k sa FAMI, nabasa ko rin sa thread sa ibaba na papadala yung investment confirmation ng initial at additional investment mo through mail or email. If I want to see all my investment, meron bang website ang FAMI para makapagregister ka at maview lahat yung mga funds mo at ma double check mo na yung confirmation mo buhat sa kanila eh mag match dun sa information sa website nila?
Hi Rogel,
I have an article for FAMI online monitoring. Is this the one you’re wanting to see?
http://mutualfundphilippines.com/2012/10/mutual-fund-university/how-to-open-a-fami-mutual-fund-online-monitoring-account/
Thanks Nick,
This is what I need and will help a lot to me to monitor my investment.
Rogel
Sorry Equity Fund pala
Hi Nick
I’m planning to invest in FAMI. Can you tell what’s the difference between Bond Fund and Equity Bond? Also what’s the minimum amount that I can invest in FAMI? Looking forward to your reply.
Thanks in advance
Sorry Equity Fund pala.hehe
Hi Cha,
the main difference between the funds you have mentioned is on how they are invested. Kapag equity funds, mostly, sa stocks iniinvest ng fund manager ung pera ng mga investors. Mas malaki ang potential return, pero mas risky compare sa ibang types ng mutual funds. Kung aggressive investor ka, this is a good option.
ang bond fund naman, these are mainly invested sa fixed income generating securities like bonds, time deposits, RTBs, etc.. This is the most conservative. Less risky, pero Di ganun kataas potential return compared to equity funds…
which is better? Depende yan kung ganu ka karisk-taker
For FAMI, minimum initial investment is 5k.
hope this helps
Hello Nick,
Nabasa ko sa mga forums na pag nag-invest ka sa stocks & mutual funds for 5yrs-10yrs or more eh malaki rin ang return mo due to cost averaging kahit magkaroon man ng downturn sa economy. Is this possible? at applicable ba ito lalo na kung risk taker ka at ininvest mo lahat sa equity funds?
Yes rumer, it’s possible. You may refer here for a case study:
http://mutualfundphilippines.com/category/case-study/
Hi Nick
Interesado ako mag-invest sa FAMI and PhilEquilty, but.. and2 ako sa Dubai.. what will I do? can I still invest my money even if I’m out the country? and okay lang ba na after ko mag-invest ng 5k, can I invest 1k na lang every month? I’m planning to invest for a long term, I preferred 20 years ..what type of bond would you recommend?
Thanks Nick I’m glad that, there is some like you enlighten our mind with regards on MF investing.
More Power!
Yes Marco, possible naman for you to invest kahit na your out of the
country. Personally, I’m investing on FAMI Fixed Income Fund (Bond
Fund).
If you need further assistance, you may just send an email here: support@mutualfundphilippines.com
Thanks Nick
Hi Nick,
Just want to know after we submitted all the requirements in opening an initial investment in FAMI, when we will get your Account number & reference number? will they email or mail to the addresses we’ve provided in the application form we submitted? I am an OFW and i want to use the METROBANK DIRECT in paying additional investment.
Thanks,
FAMI will be sending an Investment Confirmation to your mailing address wherein you can find your reference numbers. Kaso, that would take about a month.
In my case, what I did was I emailed them and asked for a soft copy. You may contact them here FAMI@firstmetro.com.ph.
Once you get your reference numbers, you may use your Metrobank Direct to make additional investments.
Thanks for prompt adviced Nick.
Hi Nick,
I already received my SOA from FAMI, Account No# already indicated but reference number is not which is required in adding additional investment thru METROBANKDIRECT. What do you think? reference number is the same with statement of account? Please advise.
Thanks,
Damian
Hi Damian,
We use the account number as the reference number in making additional investments. Hope this helps
Nick
Hi Nick,
I tried to add additional investment through metrobankdirect using my 5 digits Client No#2xx3x indicated in top right of my SOA, it didn’t worked out. An error shows ” subscriber number is not valid”. Just for your info my initial investment has been deposited and documents were submitted on 2/1/2013.
I see, you may try adding three zeros before the five digit client number. I actually use my stock brokerage account to make additional investments, that’s why I don’t use Metrobank direct’s Pay Bills.
If that didn’t work out, you may try asking FAMI
Accomodating naman sila in my personal experience.
Nick,
Maraming salamat, dahil dito sa website at tulong nyo, nakapagumpisa na ako..pumasok na additional investment ko thru metrobankdirect…God Bless and more power to you all..
It’s a pleasure to know n nakakatulong pala ung blog ko s inyo. Thank you for reading
Hope you can share your experiences here as well para naman dun sa mga nagreresearch pa Lang kung panu mag invest.
Enjooy investing!
Nick,
I just want to clarify if you did not receive some of your CONFIRMATION RECEIPTS because of change of mailing address, can you still redeem your shares? Nabasa ko ksi isa sa requirements yung original confirmation receipt eh isoli sa FAMI.
At kung magpapalit ka ng mailing address, meron bang option sa thru their website na i-change yung mailing address mo or email ka sa customer service nila?
Thanks,
Rumer
Hi Rumer,
I think it’s best to contact FAMI directly @ FAMI@firstmetrosec.com.ph
hi..i met a certified investment solicitor yesterday and she taught me a lot of things about investing in mutual funds.. i am very interested though i am also curious if i have to pay for the knowledge she shared to me.. you see she is also a registered financial consultant..im also shy to ask her that to her face..she said she’d help me through the process
Hi april
Nope, you dont have to pay anything
ang certified investment solicitor is compensated kapag s kanya k ngpa process ng investment m through commissions
hope this helps
What are bond funds?
What is the mode of payment? How often do you pay? Once, monthly or quarterly?
Initial Investment for FAMI is 5k.. Kung magdadagdag ka pa, minimum is 1k.. pero discretion m na yun kung kelang ka magdadagdag ng investment..
Hi Nick. Does FAMI also charge sales load on additional investment, or only initial investment?
Thanks
Hi Cel,
Yes, FAMI charge sales load both for initial and additional investments.
Nick
Hi nick,
Happy to discover your site. Not a question but i just want to agree on the factors your mentioned for personally preferring FAMI over other MFs mentioned. But between PAMI and PEMI, i’d choose PAMI for convenience. Convenience in the sense that one could also schedule making addtl investments thru bpi online. Pemi for me is the most complicated and the most expensive.although ive been drooling to have an account with them, i dont think i could open another bank account. How i wish, PEMI would soon be BPI’s partner merchant. Further all their fees are super high! I guess they charge the highest.which looks like eating a big chunk of the interest earned by your invested money
I agree on your points Precious. Convenience really play a big part on encouraging us to invest further. Kaya nga I chose FAMI, isang bangko lang ang pupuntahan ko (Metrobank) and then magagawa ko n lahat ng transactions na gusto kong gawin – bills payment and investing.
Between the three, FAMI charges the smallest fees (entry fees), although sabi mo nga, it’s still a big chunk of our investment. Pero syempre, un ung price of having someone to look after our money. As long as the returns are greater than the fees charged, I’m ok with that
How long have you been investing?
hi! nick. this will be my first time to invest into mutual fund if ever. although I’ve been doing my assignments. i am a simple i would say a bit above wage earner and it took me a while to save 5000php for a start up. i want to invest it to First Metro Asset Management, Inc. (FAMI), as i was downloading the forms etc. i saw there are some questions i needed to answer. newbie question, is there a right/wrong answer. i am afraid they won’t allow me to invest my money if i answered the questions wrong. thanks
Hi Trail,
Nothing to worry about that, it’s just a formality of the investment process. They will not use that to decide whether they will accept your investment or not.
Happy Investing!
Let me know if there’s something else I can help you with 
Hi Nick,
Is it advisable to invest in a bond fund right now? peso or usd? thanks!
Hi Emilio!
I am personally investing on peso bond funds para s mga short term financial requirements ko, and to balance my investment portfolio (pero hindi naman kalakihan).
On personal point of view, it always advisable to invest on bond funds to further diversify your investments.
Hi Nick, Thanks for this article. I myself am deciding to invest in mutual funds. I already have investments in direct stocks. Noted three mutual fund companies you mentioned above – FAMI, PAMI & PEMI. What is the difference in investing in these three as opposed to investing in insurance companies that offer mutual funds like pruLife? Regards, -April
Hi April, thanks for dropping by.
I’m not familiar with pruLife’s mutual fund, I think they are offering that in bundle of an insurance – which is a VUL insurance…
I just tend to prefer the above three since, above from the factors I’ve said in the post, they have a good track record already, and had been consistent for the past several years.
So, probably, the difference is, I like those three, compared to anything else
After reading through this article and responses above, It seems to me that MF is the best option to invest in. It’s good to know that we could use some leverage in MF in terms of time and effort.
I’m an OFW and I also have read the article: “OFW Guide for…” and I’m pretty much convinced that “now” is the best time to start. By the way, I would really love to hear from you about the following:
1) How often and for how long should one keep on investing if one wants to maximize his income?
2) If my goal is to become a share/stock holder in a certain company, what type of investment should I make?
3) Which companies would you recommend for item no. 2?
Thank you in advance,
Leyo
Hey Leyo, let me answer your questions per item.
.
1. For Equity and Balanced Mutual Funds, it is suggested that you hold the investment for at least 5 years. This will give your investment time to grow and get through the market cycle.
.
2. If you wish to be a stockholder, then I suggest you try investing on mutual funds, or on direct stock investments.
.
3. For newbies on investing, I suggest mutual funds. You can try looking at FAMI, Philequity, and PAMI.
…..investment plus where do I go to start MF
Hi Sol!
You may refer with my comments here: http://mutualfundphilippines.com/2012/03/mutual-fund-university/ofws-guide-to-mutual-fund-investing-in-the-philippines/comment-page-1/#comment-6987
I want to invest like you advised Kat but I don’t know how to start…pls email me the steps like where do I give the money, do I have a paper to prove that I do have an
ok Tnx a lot!
Hello. I am an amployee and I would like to start investing through mutual funds. I would like to start low and build from that so as not to startle my finances too much. I am eyeing FAMI but am also interested with Philequity. Would you recommend splitting my money into both companies or just going for FAMI for now? If the latter, when would be the best time to get invest with Philequity? Thank you.
Hello Kat! Glad you made it here.
PAMI, FAMI and PhilEquity are top asset management companies right now in the Philippines. They have been managing the best mutual funds so far. Subscribing to either of those companies would be a good decision.
If you have the means, yes, diversifying your holdings is still one of the best option. You may open an account for both with just 5k each. In that case, you’re not only diversifying investment instruments, you’re diversifying fund managers as well.
With regards to your last question, you may refer to this post: http://mutualfundphilippines.com/2012/06/mutual-fund-university/when-best-time-invest/
I hope this helps
Nick,
i saw this kind of thing in your monthly report of their Navps :
First Metro Save & Learn
Equity Fund, Inc. Â 4.5106
20.66%
36.08%
16.35%
19.45%
What does that mean? I dont know what those figures telling me. Am sorry if am getting nosy already, i just have too little knowledge on this. Your response will be greatly appreciated by me.
By the way i chose to invest my money to FAMI.
Jirianne
Hi Jirianne! I’m not sure on what is reporting month you are looking at, but, the 4.5106 is the NAVPS. It is the price where you can buy your mutual fund, or redeem your investment. It is the current market price per share of your investment.
The rest are the rate of return an investor have received during the specified years. For YTD (year-to-date) returns, it means that the comparison is the equity of invest last August 2011 and August 2012. Same goes with the 3-year and 5-year return. Basically, these figures represents the growth of your investment in the specified periods.
thanks a lot for your response!
Good Day!
I am really interested investing in MF but it quite puzzles me on the process of earning. Do I need to monitor my investment on a regular basis? I mean how will I know when is the right time to redeem my shares? Will they (MF Companies) provide us infos regarding the status of their performance? I definitely want to know. Thanks Nick!
Regards,
Jirianne
Hi Jirianne!
Let us put it this way. When you invest in mutual funds, a fund manager manages your funds. He then invest in stocks, bonds, or other investment instruments allowed in the funds’ prospectus.
Do you need to monitor your investment? In comparison with direct stock market investment, no. You don’t really need to extensively monitor your investment since the fund manager is monitoring and keeping it safe for you (with as best as he could).
In identifying whether the timing of redemption, that depends on where you will use the funds for. But as a general rule, sell when the price is higher than what you’ve paid for.
With regards to performance, it is easily accessible in pifa.com.ph. Or just subscribe here. I’m publishing monthly reports on how mutual funds perform.
Hope this helps
HAPPY INVESTING!
Thanks for the prompt reply Nick. I am betting for FAMI too. Just want some opinions. Gathering info/doing my homework before I jump in. Thank you.
Yes Junar. Due diligence should always be practiced before diving into the water
Sir Nick, would you please advise us what is the difference of Mutual Funds and stocks?
Regards,
Sheryl
Hi Sheryl! Thanks for dropping by.
When a person invest directly in the stock market, it means that he makes the decision on the buying and selling of shares of stocks he wants to invest in and own. He’s basically driving on his own to get to wherever he want to be.
On the other hand, when a person invest in mutual fund (say equity fund), he is still investing in the stock market, however, someone (a fund manager) is doing it for him. The fund manager decides what stocks to buy and sell. The investor is simply on the passenger seat, with the fund manager as the driver.