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Mutual Funds

A Mutual Fund is an investment vehicle which pools money from numerous investors through issuance of shares to the public. The price of a mutual fund share is known as the Net Asset Value per Share or NAVPS, which is determined at the end of each business day. This is calculated by subtracting the fund’s liabilities from the fund’s market value divided by the number of outstanding shares. 

A Mutual Fund's portfolio is managed by an Investment Manager. These funds are invested in various securities according to the policies, investment strategies and objectives of the fund.

As an investor, you will have the following benefits: 

 

Professional Management 

One of the main attractions of mutual funds is that it affords its investors, particularly the small ones, the services of full time investment managers whose job is to analyze and select investment products which would give the best possible returns to the fund and its shareholders. 

 

Low Capital Requirement 

A key advantage of mutual funds is they offer investors access to professional money management for a relatively low minimum investment.

 

Diversification 

Mutual funds are invested in a wide array of securities that can lower overall risk without necessarily reducing returns.

 

Liquidity 

Mutual fund shares can be redeemed at any time based on the prevailing Net Asset Value Per Share. 

 

Safety 

Mutual funds are registered with and highly regulated by the SEC. It functions within strict regulations designed to protect the interest of the investors. 

 

Potentially Higher Returns 

Because a mutual fund is managed as a single portfolio, it is able to take advantage of certain economies of scale and has access to investments with higher returns.

 

What are the risks in investing in a Mutual Fund?

 

1.       Investments are not guaranteed

 

Investments are priced daily. Since it is marked to market, it does not have fixed returns.

 

2.       Value of the Fund may Go Up or Down

 

The value of your investment can fluctuate daily, based on current market prices of the underlying assets.

 

3.       Not Covered by PDIC

           

Fund is not a deposit product and therefore the principal is not insured by the Philippine Deposit Insurance Corporation

           

How do I compute for the shares I purchased?

 

When you invest in a mutual fund, you will get an equivalent no. of shares on your investment. Below is an example on how to compute your no. of shares:

INVESTMENT/SUBSCRIPTION

 Fund

 Investment/Subscription Date

 ATRAM Dynamic Allocation Fund 

 January 1, 2014

 NAVPS on January 1, 2005

 1.7450

 Total Amount Invested

 P 1,000,000.00

 Front-End Load / Fee (0.75% of Amount Invested)

 P  7,500.00

 Total Net Amount Invested (P 1,000,000 – P 7,500)

 P  992,500.00

 No. of Shares (P 992,500 / 1.7450)

 568,767.9083 shares

 

How do I compute for the units I redeemed and the gain/profit I earned from my investment?

 

When you already want to withdraw or redeem your shares in the fund, the Redemption Amount and your Net Gain is computed as follows:

 

 

WITHDRAWAL/REDEMPTION

 Fund 

 Redemption Date

 ATRAM Dynamic Allocation Fund 

 May 19, 2015

 NAVPS for June 15, 2005

 1.9461

 No. of Shares

 568,767.9083 shares

 Redemption Amount (No. of shares x NAVPS)

 P  1,106,879.23

 Net Gain (P 1,106,879.23 - P 1,000,000)

 P  106,879.23

 

Invest Now! Choose from a Variety of Mutual Funds below:

ATRAM Corporate Bond Fund

ATRAM Dynamic Allocation Fund

ATRAM Philippine Balanced Fund

ATRAM Philippine Equity Opportunity Fund

ATRAM Alpha Opportunity Fund

ATRAM Total Return Dollar Bond Fund

ATRAM Asia Plus Equity Fund



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