Invest in Mutual Funds with FAMI


A mutual fund is a pool of money professionally managed and invested in specific types of securities. The fund manager monitors the markets wherein the funds are invested and also looks for more opportunities to invest, always with the intention to maximize the returns of the fund. A good fund manager should outperform the usual alternative investments available mostly to big investors.


Advantages of Mutual Funds

Professional Management

The money accumulated in a mutual fund is managed by professionals who decide on behalf of the shareholders regarding investment strategy. These professionals choose investments that best match each fund’s objectives as described in the prospectus. Their investment decisions are based on extensive knowledge and research of market conditions and on the financial performance of individual companies and specific securities.


Our fund managers invest in a variety of securities, seeking portfolio diversification.
A diversified portfolio helps reduce risk by offsetting losses from some securities with gains in others, protecting the value of your investments by eliminating the chance of having it diminished if one security suddenly decreases in price. The average investor would find it expensive and difficult to construct a portfolio as diverse as that of a mutual fund. Mutual funds provide an economical way for average investors to obtain the same kind of professional money management and diversification of investments that is available to large institutions and wealthy investors.


Liquidity is the ability to readily convert investments into cash. Other investment products require investors to find a buyer to liquidate his/her investment. That is not the case with mutual fund shares because the fund itself stands ready to buy back these shares at the prevailing Net Asset Value Per Share. While the law provides that the redemption proceeds must be given within seven (7) banking days from the date of redemption, FAMI funds are able to pay the redemption proceeds within 3 to 4 banking days. Mutual funds are, therefore, considered very liquid investments.


Mutual funds are highly regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act and its implementing rules and guidelines. They are prohibited from investing in certain investment products and from engaging in certain transactions to maintain their integrity. They also have to submit regular reports to the SEC and the shareholders as well.

Daily Pricing

Mutual funds must calculate the price of their shares every business day. This price is called the Net Asset Value per Share (NAVPS) and FAMI is required to publicly disclose this for transparency with our customers.
This same price is used for both subscription and redemption transactions. Investors can sell (redeem) some or all of their shares anytime and receive the current share price if the application for redemption was received within the specified cut-off time.

Voting Rights

Mutual fund shareholders are part owners of the fund and are therefore entitled to vote during the funds’ annual shareholders’ meeting.

Potential High Returns

Because a mutual fund is managed as a single portfolio, it is able to take advantage of certain economies of scale. For instances, with its millions or billions of funds under management, it can negotiate for lower stock brokerage fees or command higher interest rates on fixed-income investments.

Tax Free

Income generated by mutual fund shareholders are exempted from capital gains tax as stipulated in the Republic Act No. 8424 Section 32(B)(7)(H).