This October, I started investing in First Metro Assets Management Inc. I chose Save and Learn Equity Fund (SALEF); the minimum amount to invest is P5,000.
From the word itself "mutual", meaning it's shared. Mutual Fund is a collection of funds gathered from investors which is then handled by a manager. The manager is called "fund manager". The idea is that you are entrusting your money to a person who is, in most cases, more knowledgeable than you are in investing it to different security options like stocks, bonds, etc.
The advantage of this is that your money belongs to a pool which is big and has a buying power far greater than yours. This means that the investment is diversified and has greater potential to earn more. This is realized more if you don't have a huge amount of money to invest (e.g. you're starting with 5,000 Pesos). Your money is basically riding on the collected funds. Another advantage is you don't have to worry about it minute by minute or even day by day since you're not the one managing the fund.
From the word itself "mutual", meaning it's shared. Mutual Fund is a collection of funds gathered from investors which is then handled by a manager. The manager is called "fund manager". The idea is that you are entrusting your money to a person who is, in most cases, more knowledgeable than you are in investing it to different security options like stocks, bonds, etc.
