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 I will assure you that returns can be higher over a long period of time. Â However, 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.Â Like any other investments, mutual funds have certain amount of risks like; market volatility in case of investments in equities and interests changes in case of bond funds. But again, in the medium to long run there is always growth in Mutual Funds due to their wide and varied portfolio.
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.Â Buying and selling mutual funds shares is done on the basis of NAV prices. If you see a fund NAV as P1. 00, then you can expect to buy the fund for P100 or sell it for P100. Since mutual funds hold a number of stocks, the NAV is calculated at the end of the day on a daily basis.
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.
8. What are the requirements when investing in Cocolifeâ€™s Mutual Funds?
You have to fill up 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?
You do not necessarily have to monitor your investments or NAVs on a daily basis. But if you wish to have an update of your investment, you can visit usÂ thru our website,Â www.cocolifefunds.com, or you can call us at 8-101-888. Our NAV and Past Performance are also published together with other Mutual Funds at Business World and Business Mirror.Â You can also request for a quarterly statement.
13. What are CAMCIâ€™s Funds?
We have three types of Funds namely: the United Fund Inc. which is an Equity Fund.Â It is a diversified portfolio of Blue Chip and Growth Stocks in PSE and high fixed income instruments. The Cocolife Fixed Income Fund which is a bond fund.Â It is a long-term debt instruments such as corporate bonds, government bonds and treasury notes, treasury bonds and agency bonds. The Cocolife Dollar Fund Builder which is Dollar Balanced Fund. It is a diversified portfolio of US Dollar denominated fixed-income and equity investments.
14. Is it a good 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 investments based on your personal circumstances, goals and tolerance for risks. Choose the funds where you are comfortable with its investment style and objectives
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.