Curiosity meet Mutual Fund

As my passion in investing started to explode, my curiosity about mutual fund investment turned to a maximum level of excitement. I made different research on what mutual fund is all about, what are the different types of mutual fund to consider and how will I get benefit from it. I've read the book "Investor's Business Daily" written by Bill O'neal, he is one of the best-selling authors featured in Wall Street Journal and New York Times. I was able to understand the basic terminologies like "Buying" means investing a certain amount for a number of shares, "Selling" means when you withdraw the amount you invested.

Mutual Fund is simply a financial intermediary that follows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or bonds to buy).

Last year, I decided to buy a share from Philam Asset Management Corporation amounting to Php 10,000 for a NAVPS (Net Asset Value Per Share) of 9.20. I got 1,034 shares. Aside from that, I applied for 5 months Php 1,000 mutual fund to accumulate my number of shares. I chose the "Balanced Fund Type" of mutual fund because it combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate (higher equity component) or conservative (higher fixed-income component) orientation. This type of mutual fund is geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts that such a mutual fund invests into each asset class usually must remain within a set minimum and maximum. I really like the mutual fund game and it is a good long-term investment.