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Frequently Asked Questions on Mutual Funds

Usual questions asked when I discuss mutual funds to beginners.

Q: Can I lose money in Mutual Fund?

A: Yes, depending on market conditions. However, the fund manager’s job is to minimize risk and losses for the shareholders.

Q: How much interest do I get as an investor?

A: Mutual funds do not give fixed and guaranteed returns. Returns are based on the difference of your buying price and current net asset value per share (NAVPS). Market conditions play a major role  in determining the annual returns of mutual funds.

Q: How long is the maturity period?

A:  Mutual funds do not have maturity periods which means that the shareholders can actually sell their shares in any banking day. Furthermore, mutual funds are required by law to buy back the shares from the shareholders and to release the proceeds of any sale within seven (7) banking days.

A: Charges in mutual funds vary from company to company. In Sun Life, you can actually choose from 2 charging methods, Front End or Back End, whichever is applicable to you.

Front End charging – your total investment will be deducted by 2% upon deposit. The remaining amount will be the basis of your investment. The advantage of this option is then whenever you plan to withdraw, there will be no more exit fees.

Frond End Sales Load

Sales Load Rate (Excluding VAT)
PESO FUNDS
Less than P100k2.00%
P100k to less than P1M1.50%
P1M to less than P5M1.00%
P5M and up0.50%
DOLLAR FUNDS
Less than $2k2.00%
$2k to less than $20k1.50%
$20k to less than $100k1.00%
$100k and up0.50%

Back End charging – your total investment will be deposited and invested as is, no charges. However, the charges are determined depending on the length of investment.

Back-End Sales Load

Redemption onBACK-END Load Rate(Excluding VAT
1st year5.0%
2nd year4.0%
3rd year3.0%
4th year2.0%
5th year1.0%
Beyond 5 yearsNone

Q: Can I open a Joint Account like in banks?
A: Yes, Joint Accounts are allowed also in Mutual Funds.

In case you have more questions, feel free to comment below or send your questions in our Contact Us page.

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