3 MINUTE READ
At First Metro Asset, our mission is to transform Filipinos from savers to investors.
We do this by creating an assortment of mutual fund products for every risk appetite and goal, promoting savings mobilization and advocating investment literacy in the country.
With our wide fund offerings, we believe we can find the right fund for your current risk appetite and goals.
There are TOP 3 EASY WAYS you can assess which fund to first open:
1. Choose based on your risk profile
A risk profile is an evaluation of an individual’s willingness and ability to take risks. All investments involve some degree of risk. The moment you choose to invest, you are exposed to certain investment risks that can affect your returns in the long run. If you want to make the most out of your mutual fund investment, you need to strike a balance between risk and returns.
There are three types of investors according to risk tolerance:
Conservative – Have the lowest risk tolerance among the three and lean more on portfolio with steady growth.
Moderate – Have a medium level risk tolerance and values reducing risks and enhancing returns equally.
Aggressive – Have higher risk tolerance, seek higher return through long term investing.
Knowing this, try to assess what your risk profile is. Are you more of a Conservative Investor – low risk tolerance, lean more on portfolios with steady growth?
Are you an Aggressive investor – higher risk tolerance, want higher returns through long term investing.
FAMI TIP: If you are a mixture of the two, you are a Moderate Investor with a risk tolerance on a medium level.
2. Choose based on your investment horizon
An investment horizon refers to the length of time that an investor is willing to hold the portfolio.
There are three types of investment horizons: – Short, Medium, and Long-Term Investment Horizon. Short-term is usually of one to three years. The medium-term is relatively between five to seven years. Long-term is a period of more than 10 years.
Investment horizons weighs heavily about your expectations from the investment. How do you know your investment horizon? Simply answer the question – How long are you willing to stay invested?
3 years? 5 years? 10 years? Or longer?
FAMI TIP: Investing in the long term allows you to be more aggressive. While short-term investing makes you more conservative.
3. Choose based on your financial goals
Implementing goals that are specific, measurable, attainable, relevant and timely are important specially for your investments.
What are you trying to achieve with your investment? Is it for your children’s education? Your own house? Your retirement?
To further help you, during the Account Opening procedure, you are required to answer the Suitability Assessment Form. This is a way for us to assess which mutual fund product is suitable for you.
FAMI TIP: Worry not! Because your chosen fund is something you can discuss with your Relationship Manager during the interview.