Critical Points

  • When you buy into mutual funds, your investments are handled by a fund manager assigned by the company.
  • The returns on your investment are dependent on many factors, including your risk appetite and the fees charged to the investor and the fund.
  • The list of funds authorised or recognised by SEC for sale to retail investors is available on their website.

There are four  four basic types of mutual funds in the market:

  • Money Market Funds invest in short-term debt instruments like time deposits. (e.g. Sun Life Prosperity Money Market Fund)
  • Bond Funds invest in long-term debt instruments of governments or corporations.(e.g. Sun Life Prosperity GS Fund and Sun Life Prosperity Bond Fund)
  • Balanced Funds invest both in shares of stock and debt instruments.(e.g. Sun Life Prosperity Balanced Fund)
  • Stock Funds / Equity Funds invest primarily in shares of stock.(e.g. Sun Life Prosperity Philippine Equity Fund and Sun Life Prosperity Philippine Stock Index Fund)


If you invest in a mutual fund your money is pooled with money from other investors and invested in a portfolio of assets according to the fund’s stated investment objective and investment approach.

A mutual fund is a fund which adopts a trust structure; not all funds use a trust structure. In this guide, the term “fund” will also refer to a mutual fund.


VUL insurance policies are another way to invest in funds. The difference between these and mutual is that VUL combine life insurance coverage and investment components. Your premiums are used to pay for units in sub-funds of your choice, and some of the units are then sold to pay for insurance and other charges. (make sure you understand the mortality expenses – it varies company to company).

If your main goal is investment, you may wish to consider mutual funds.


In Philippine, local and foreign funds offered to retail investors are regulated as mutual funds. A fund manager manages the mutual funds. They are paid a management fee from the fund, typically based on a percentage of the assets they manage.


You invest in a fund by buying units in the fund. There is a capital gain when the price of the units rises above the price you paid for the fund. Some funds pay dividends.

The price of each unit is based on the fund’s net asset value (NAV) divided by the number of units outstanding. The NAV of a fund is the market value of the fund’s net assets (investments, cash and other assets minus expenses, payables and other liabilities.) The NAV is usually computed daily to reflect changes in the prices of the investments held by the fund.


Funds are not principal or capital-guaranteed. You may lose a substantial amount of the money you invested in certain situations. The risks of investing in the fund are described in the product summaries such as the prospectus and the product highlights sheet.

IMPORTANT TO NOTE: Fees can also reduce your returns. Fees are usually payable regardless of how well or poorly the fund performs. Even if your fund’s value has been fairly stable, the fees you pay will, over time, reduce the value of your investment.


Some of the risks associated with investing in MUTUAL FUND include the following:

  1. Market risk – The fund’s NAV or trading prices will be affected by changes in the value of the assets in the fund that in turn are affected by changing economic, political or market conditions.
  2. Liquidity risk – There is no secondary market for funds that are not listed. Hence, you can only redeem your units on the fund’s dealing days. The secondary market may also be illiquid for funds that are listed and traded on a securities exchange. This may affect the prices at which you buy or sell.
  3. Interest rate risk – Funds that invest in bonds, debentures or other debt securities will be exposed to interest rate movements because the prices of debt securities tend to move in an opposite direction to interest rates. For instance, debt securities prices generally fall when interest rates rise.
  4. Counterparts risk – Funds may be exposed to the risk that the counterparty that they trade with is unable to meet its payment obligations due to a deterioration of the counterparty’s financial situation or otherwise.

So what do you think? Are you ready? – Talk to a Qualified Financial Adviser and get familiar with the kind of funds they sell…Enjoy Investing.

Article by: Ashok MBA – Strategic Coach & Mentor for MDRT/COT/TOT


  1. Haele 6 months ago

    You may have heard about exchange-traded funds (ETFs), or read about them online, especially comparing them to traditional mutual funds. ETFs do have a number of benefits; however, as with all investments, there are some drawbacks you need to know about before you make the switch.

  2. is web hosting 3 months ago

    Today, I went to the beach front with my
    kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell
    to her ear and screamed. There was a hermit crab inside
    and it pinched her ear. She never wants to go back!
    LoL I know this is completely off topic but I had to tell someone!

  3. 3 months ago

    What’s up everybody, here every one is sharing these kinds of experience,
    so it’s fastidious to read this webpage, and I used
    to go to see this webpage daily.

  4. If you wish for to take much from this article then you have to apply such strategies to your won weblog.

  5. your scoliosis surgery 3 months ago

    Howdy! This post couldn’t be written any better! Reading through this post reminds me of my
    previous room mate! He always kept talking about this.

    I will forward this post to him. Pretty sure he will have a good read.
    Thank you for sharing!

  6. 3 months ago

    You really make it seem so easy along with your presentation but I find this topic to be actually one thing that I think I would by
    no means understand. It sort of feels too complicated
    and extremely huge for me. I’m looking forward on your subsequent post, I will try to get the grasp of

  7. 3 months ago

    Thanks very nice blog!

  8. 3 months ago

    magnificent issues altogether, you simply received a new reader.
    What might you recommend in regards to your post that you made
    some days ago? Any certain?

  9. 3 months ago

    I am really impressed with your writing skills
    and also with the layout on your weblog. Is this a paid
    theme or did you customize it yourself? Either way keep up the excellent quality writing, it’s rare to
    see a great blog like this one nowadays.

  10. in scoliosis surgery 3 months ago

    Howdy! I’m at work browsing your blog from my new apple iphone!
    Just wanted to say I love reading through your blog and look forward to all your posts!
    Carry on the great work!

  11. 3 months ago

    I’ve been browsing online greater than 3 hours today,
    yet I by no means discovered any fascinating article like yours.
    It is pretty worth sufficient for me. In my opinion, if all web owners
    and bloggers made just right content material as you did, the web shall be much more
    helpful than ever before. asmr asmr

  12. your quest bars 3 months ago

    Does your site have a contact page? I’m having trouble locating it but, I’d like to send you an e-mail.
    I’ve got some ideas for your blog you might be interested in hearing.
    Either way, great site and I look forward to seeing it
    expand over time. quest bars quest bars

  13. 3 months ago

    It is perfect time to make a few plans for the long run and
    it’s time to be happy. I’ve learn this submit and if I may I desire to counsel
    you few attention-grabbing issues or tips. Maybe you
    could write subsequent articles relating to this article.
    I desire to read even more issues approximately it!
    cheap flights cheap flights

  14. 3 months ago

    Hey there! I simply want to offer you a huge thumbs up for the excellent information you’ve got here on this post.
    I’ll be returning to your web site for more soon. scoliosis surgery scoliosis surgery

  15. 3 months ago

    Hello, I desire to subscribe for this web site to obtain most up-to-date updates,
    therefore where can i do it please assist. ps4 ps4

  16. Hello, i think that i saw you visited my site so i came to “return the favor”.I’m trying to find
    things to improve my web site!I suppose its ok to
    use some of your ideas!! quest bars quest bars

  17. 3 months ago

    My coder is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the costs.
    But he’s tryiong none the less. I’ve been using Movable-type on numerous websites
    for about a year and am nervous about switching to another platform.
    I have heard good things about Is there a way I can import all my wordpress posts into it?

    Any help would be greatly appreciated! scoliosis surgery scoliosis surgery

  18. ps4 games in 1 month ago

    Excellent post however , I was wanting to know if you could
    write a litte more on this topic? I’d be very thankful if
    you could elaborate a little bit further. Many thanks!

Leave a reply

Your email address will not be published. Required fields are marked *



We're not around right now. But you can send us an email and we'll get back to you, asap.


FINWAZE makes no representations or warranties, express or implied, in relation to this website ( or the information and materials provided on this website. It does not also warrants that this website will be constantly available or available at all times. The information on this website is complete, true, accurate or non-misleading. Nothing on this website constitutes, or is meant to constitute, advice of any kind. FINWAZE shall not be liable for any damage or injury, whether direct or indirect, that it may cause in relation to the contents of, or use of, or otherwise in connection with this website. By using this website, you agree to the reasonableness of the limitations of liabilities herein set out and further agree to assume whatever risk, loss, damage or injury in may cause in connection to the use of this website. No claims shall be brought personally against the officers and employees of FINWAZE, in connection with the use of this website. The user of this website agree to the limitations of warranties and liabilities herein set out to protect the officers, employees, agents, subsidiaries, successors, assigns and sub-contractors as well as FINWAZE. Any unenforceable provisions that may be found on this website under applicable law shall not affect the enforceability of the other provisions.

Legal Documents  |  ©2021 Finwaze Philippines

Pin It on Pinterest

Share This

Log in with your credentials

Forgot your details?