Emphasizing how investing in mutual funds “saves time, effort, and money”, First Metro Securities Brokerage Corporation’s Business Development Associate John Phillip Billones encouraged students that these investments are best for beginners.
The Junior Finance Executives (JFINEX) talk, titled “Real World, Real Talk: Mutual Funds 101” was held via Google Meet yesterday focusing on introducing the benefits of investing in mutual funds.
Because of “worry on small capitals, commitment to work, family, and leisure, and their skills and experiences”, most Filipinos do not invest, according to Billones.
He advised students that mutual funds are suitable for beginners if one is “not yet a stock picker, busy and don’t have time, and a potential emotional investor.”
Billones explained that mutual funds are investment funds that pool money from different investors, which are managed by fund managers. These investments are used to purchase diversified securities.
These fund managers, according to the Billones, save effort for investors because they are skilled professionals who will do the investing for them.
Billones also cited other advantages of mutual funds including low capital requirement, instant diversification, daily pricing, and liquidity.
Mutual funds are registered and highly regulated by the Securities Exchange Commission, assuring that these funds guarantee “no scams”, Billiones stressed.
Quoting famous American investor and mutual fund manager Peter Lynch, Billones shared that “equity mutual funds are the perfect solution for people who want to own stocks without doing their own research.”
JFINEX Internal and External Vice President Maria Alyssa Amante and Mila Jane Respicio both shared that mutual funds would help students begin investing as it is cost-efficient and time-saving.
Respicio highlighted that the diversification advantage in investing in mutual funds would provide lesser risk for beginners.
“…we must invest in mutual funds as it [provides] us an opportunity to invest our money in well-diversified holdings in such a way we can avoid some of the complicated decision-making involved in investments,“ she said.
Meanwhile, Amante shared how mutual funds were also helpful to students who have part-time work because of its convenience.
“That is why I highly recommend those who do part-time jobs or to students loaded with many works to invest in mutual funds now. It is much easier and convenient for persons who are busy enough to focus on their investments,” she said.
Following JFINEX’s first webinar “Stock Market 101”, an estimate of 120 participants, combining students and professors, joined the second webinar.