INVESTING IN MUTUAL FUNDS OR TRUST FUNDS....

If you cannot stomach directly investing in the stock market or even in bonds, then mutual funds or other trust funds may be for you. These funds basically combine various investments (stock A plus stock B plus stock C) or investment vehicles (stock plus bonds). Of course, the returns depend on how well these investments perform but then, there are advantages to investing in these funds. The amount of start-up investment is quite low (here you can invest with just 10,000 pesos or $200), the holding period can be short (30 days), the risks are spread over various investments and you can add on to the fund anytime you want. Plus, you have available at your disposal fund managers who should know about the products you are investing in.