1. What is a Mutual Fund?
Mutual Fund is simply a mechanism of pooling together the investorâ€™s money for collective investment with the objective of attractive yields and capital appreciation. The Mutual Fund has a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds).
2. What are the benefits of investing in a Mutual Fund?
For the average investor, mutual funds are a convenient and affordable way of gaining access to investments that would otherwise be available only to wealthy individuals or large institutions.Â These investments are selected by experienced professionals who devote themselves to tracking the markets, analyzing investments and implementing an investment strategy which you may have no expertise or time to do. Aside from this, Investing in Mutual funds offers you:
3. Are Mutual Fund Returns Guaranteed?
No. There are no assured returns in mutual funds. Mutual funds qualify as securities and not deposits. Their values change frequently, but returns can be higher over a long period of time. Further, fund managers and the funds themselves operate under strict securities regulations.
4. Why is there no assurance or guarantee from Mutual Fund?
As per SEC guidelines we cannot guarantee returns. Like any other investments, mutual funds have risks like volatility in stock prices and bond prices. Nevertheless, equity risk will be managed through prudent selection and avoidance of speculative and doubtful securities as well as portfolio diversification; while interest rate risk will be managed by actively monitoring the prevailing interest rates.
5. Can I withdraw my money anytime?
Yes. Investors have immediate access to their money by selling shares at the funds Net Asset Value or NAV, which is determined at the end of each trading day.
6. What is Net Asset Value or NAV?
The Net Asset Value or NAV is its price per share. Buying and selling mutual funds shares is done on the basis of NAV prices. NAV per share is computed daily on each banking day.
7. Are there any fees or charges when investing in Cocolifeâ€™s mutual funds?
Yes. Our fees are so minimal that you wont even notice it. There is an entry fee of 2.0% of the NAV at the time of the purchase of shares, a redemption fee of 3.5% of the NAV if redeemed less than one year of purchase and a documentary stamp tax which is calculated at P1/P200 x no. of shares purchased.However, gains realized by a stockholder upon the redemption of shares of stock in a mutual fund company are excluded from the computation of such stockholderâ€™s gross income and are, thus, exempt from taxation.
8. What are the requirements when investing in Cocolifeâ€™s Mutual Funds?
You have to fillÂ out anÂ Account Opening Form, Order Form andÂ Signature Card and submit a photocopy of your two (2) valid IDs.
9. What will I receive as a proof of investment in Mutual Fund shares?
Upon investment, you will receive the clientâ€™s copy ofÂ OrderÂ Form and a Provisional receipt.Â Then you will receive the Official Receipt, Purchase ConfirmationÂ and the Depository Receipt.
10. What do I present when I want to redeem my shares?
The Original Depository Receipt and a duly signed Redemption Form (Order Form).
11. Who regulates the Mutual Fund Industry?
The Securities and Exchange Commission (SEC) regulates the mutual fund industry.
12. How do I monitor the value of my investments and track the Fundâ€™s Performance?
To monitor the value of your investments, you may choose to receive a daily text update or you can visit the Cocolife Asset Management Co. Inc. website (www.cocolifefunds.com). Likewise, you can visit us at our office located at the 8th floor, Cocolife Building, Ayala Avenue, Makati, or you can call us at 810-1888. You will also receive a quarterly statement of account.
13. What are CAMCIâ€™s Funds?
Currently, we have three types of Funds namely: the United Fund Inc. which is an equity Fund. It is a growth-oriented mutual fund, which seeks to maximize income and maintain liquidity of investments through a diversified portfolio of listed equity issues and high grade fixed income instruments. We also have the Cocolife Fixed Income Fund which is a bond fund. It is an income-oriented mutual fund, which seeks to generate regular interest income, consistent with its policy to preserve capital and to maintain liquidity of its investments through a diversified portfolio of corporate bonds, government securities and other fixed income instruments that generate regular interest income. And the Cocolife Dollar Fund Builder, Inc., a growth and income-oriented mutual fund, which aims to provide investors with long-term capital appreciation. The Fund seeks to generate long-term total returns from interest income and capital growth by investing in a diversified portfolio of US Dollar denominated fixed-income and equity investments.
14. When is the right time to invest in Mutual Funds?
Remember that time and not timing is the key to successful mutual fund investing. As an investor, your concern should be to have as much time as possible to stay invested. Take the long-term view.
15. How do I choose the funds where I am going to invest?
You should select funds based on your investment objectives, investment horizon and risk profile.
16. Is investing in Mutual Funds a one-time payment or do I have to invest regularly?
Though you can invest one-time, investing regularly can be a great way to build up a significant lump sum. You will also benefit from what is known as cost averaging.