How much will I earn if I invest in mutual funds? Are the returns guaranteed?

Mutual funds are NOT fixed-income investments and therefore do not pay guaranteed return.

Mutual funds are invested in stocks or corporations issued by the government where prices differ daily. As a result, the value of your investment also fluctuates depending on the performance of its underlying instruments.

While funds’ earnings are not fixed average of 6-18% a year, the potential for investor to earn is higher because

Mutual Funds are well-diversified as it is invested in a basket of securities.

Historically, mutual funds outperformed traditional time deposit placements or short-term money-market funds.

How long is the maturity period for mutual funds?

Mutual funds do not have maturity periods. This means that the shareholders can actually sell their shares in any banking day.

Most mutual funds, however, charge exit fees for short-term investors and it varies from fund to fund. Normally less than 6 months.

Can I tell the fund manager what to buy or sell?

No. The fund manager will follow the investment parameters indicated in the fund's prospectus.

What prevents the fund manager from running away with my money?

Mutual funds are structured in a manner that protects the shareholders' interest.

The fund manager does not have control over the assets of the fund except to make the buying and selling decisions.

The assets are held by a custodian bank, appointed by shareholders, who in return cannot transact these assets.

Can I lose money in mutual funds? Is my investment secured?

As with any investment instrument, investing in mutual funds involve a certain amount of risk. Stock and bond prices go up and down daily so does the value of the mutual fund investments.

Depending on market conditions, thee may be periods when the value of your investment can be lower than the actual amount that you invested — "paper loss." But unless the investor redeems these shares, these paper losses will not be realized.

Additionally, there are ways in which fund managers apply investment strategies in order to seize opportunities and avoid losses, and while there are risks in mutual fund investing, the returns can also be very rewarding most especially in the long-run.

Is my investment covered by the Philippine Depository Insurance Corporation (PDIC)?

No. A mutual fund is not a deposit product; therefore, it does not need to be covered by the PDIC. However, mutual fund shareholders are entitled to their proportional share in the total assets of the fund.

The PDIC on the other hand, can only insure up to P500, 000.00 of your total deposits with a bank and not your entire investment amount. Moreover, mutual funds are liquid instruments as these are invested in marketable securities.

How do I invest in a mutual fund?

You can invest in a mutual fund by buying its shares from fund management companies or through licensed brokers.

The money you will invest will be converted into a number of shares. This is computed by dividing the amount invested by the current price or the Net Asset Value per Share or NAVPS.

What if something happens to me?

Your investment will form part of your estate and will be distributed to your heirs (usually surviving spouse and children) accordingly. However, it will be subject to estate tax which your immediate family would have to settle first before they will be allowed to claim the investment proceeds. To ease the transfer of the fund shares of a deceased investor, assigning a co-investor upon initial investment is suggested.

What if Rampver closes, what will happen to my investment?

Rampver Financials is separate from the Mutual Fund Company.

Your investment will remain intact because you are invested directly in the mutual fud company and not in Rampver.

Rampver Financials is the financial intermediary between the fund management companies and the investors.

We provide you the access to these Mutual Funds companies.

Are Mutual Fund gains taxable?

No. Mutual Fund gains are exempted from taxes based on Comprehensive Tax Reform Program. This was done in order to promote long-term investing in the country. 

Will my investment lapse or expire if I cannot invest monthly?

No. Mutual Funds do not have lapsing periods or expiry dates. It does not have a strict investing schedule that you must follow. You can invest monthly, quarterly, annually — it all depends on the investor when he/she will invest.

Though not required, Rampver recommends that investors should top-up their investments regularly to capture different market prices, thus maximizing the earnings potential of their investment. This also forges the discipline of investing regularly.