Two Simple Steps To Open a Mutual Fund Account

Several months ago, I planned of opening a mutual fund account in FAMI (First Metro Asset Management Inc.) especially last August and September when the stock market declines because of the crisis in US and Europe.  When I visited FAMI website, I failed to read carefully the details on how to proceed with this kind of investment.  In short, my investing was delayed.

I noticed when it comes to investing; the most difficult is the decision stage.  Money or the initial investment needed is not really the biggest showstopper.  Half of the time, I already have the amount for the initial investment but I used it for something else.

The same thing happens when I first learned about the stock market.  It took me 6 months to decide.  I know I’m not alone because majority of my friends and relatives I encouraged to invest did the same thing and some of them did not invest at all.

Well now I realized that buying a mutual fund is as easy as paying your monthly electricity bill.  I assumed that you already have the idea what mutual fund is.  If you still don’t know you can click here to learn.

In my case, a long term investor, I choose Equity Fund.  Below are the 2 simple steps to open a mutual fund account in FAMI:

  1. Download, print and fill-up the forms.  This consists of Account Opening Form (AOF), Investment Application Form (IAF) and Signature cards.  Bring photocopy of two (2) valid IDs.  Application forms can be found here.
  2. Go to the Metrobank branch near you, deposit the initial investment of 5,000 to the FAMI account number (SA#016-3016-251-497) and submit all papers to the teller.  The teller will also validate and check the forms for the required signatures along with the requirements.

Once you’re done with these two steps, wait for 3-5 working days for the confirmation.  FAMI will be sending the receipt to your home address indicated in the application forms.

The next challenge is to regularly funding your mutual fund account.  The good thing about mutual fund is you can add as low as 1,000 pesos and also this is for people who don’t have time to learn the stock market.  By the way, equity fund is one way of investing in the stock market indirectly.  You just allow somebody, the fund manager to invest your money for a fee.

To learn more about mutual funds click here.

Image credit:  http://farm8.static.flickr.com/7067/6960386127_24c5b8dfaf_m.jpg

12 thoughts on “Two Simple Steps To Open a Mutual Fund Account”

    1. In my case I don’t have a broker. You can open an account without a broker. But if you need to learn more which mutual fund is suitable for you, you can look for a broker so they can guide you and review your financial situation. Some brokers offer a seminar for free then you can open an account through them.

  1. Good afternoon.
    So after filling up the forms, deposit to Metrobank and the documents will be left with them?
    Thanks.

  2. hi. do you also have an account with colfinancial? if so, would you still recommend investing in equity funds? anyway, thanks for sharing bo’s stock updates!

  3. Im planning of investing in FAMI. After ba ng initial 5k, do i have to pay again quartly/semi-annually or its up to me na lang thru top ups? Ur answer would clarify it. Thank you so much! ^_^

    1. Hi Gee,

      Thank you for visiting my website. For FAMI top ups, it’s all up to you. I suggest you do it monthly or quarterly so you can maximize earning potential using cost averaging. You can add for as low as 1,000 pesos.

      Good luck and happy investing!

    1. Hi Mau,
      For FAMI mutual fund, additional funds or top-up such as 1,000 pesos can be deposited through Metrobank.
      COL is also now offering mutual funds. Additional funds can be transferred online such as BPI then you just buy your desired mutual funds using COL’s platform. Good luck on your investments!

  4. Is this safe po? may insurance po ba ito if incase for bankruptcy? for short term investment after 6 months if incase I want to withdraw makukuha ko ba ang pera na walang kaltas?

    Thanks!

    1. Hi Jay,
      Mutual funds are not insured. If you’re planning for a short term investments, mutual funds may not be suitable for you. Mutual funds are ideal for long-term; at least 5 years.

      Happy investing!

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