More and more people are securing their finances and theri future putting theri money on Mutual Funds, where they became as shareholders.

Mutual Fund is an investment company that pools the funds of many individual and institutional investors to form a massive asset base. The assets or the funds will be entrusted to a full time fund manager who will develop and secure the portfolio of security investments.  A mutual can make money from its securities investments in two ways: a security can pay dividends and interest to the fund, or a security  can rise in value.  The fund passes any dividends, interest or profits on the sale of its portfolio securities, less fund expenses, to shareholders in the form of distributions.

There are four types of Mutual Funds that exists in the country, which are:

• Bonds-  Bond funds invest primarily in bonds such as treasury notes issued by the Philippine government and commercial papers issued by reputable companies in the Philippines. Bonds provides capital preservation while maintaining a conservative stance in terms of allocation.

• Money Market Funds- Almost the same as bonds but differ in terms of investments which up for 1 year or less.

• Equity Funds- Members of Equity funds usually shares stock in Philippine big corporations.

• Balanced Funds- Members both invest in bonds and shares a stock in companies.

There are 22 Mutual Funds in the country today were 10 mostly are Balanced Funds. 6 companies are Bond Funds while 5 is in Equity Funds. However, only one company offers Money market Funds.