Opening a Mutual Fund Account in 5 Steps

Five Steps to open Mutual Fund - Philippines
Since published a couple of articles about investing in Mutual Funds, I have received quite a lot of inquiries via email (thru Contact Form of this site)

And since these questions are almost the same (e.g. How do I start? What should I do?), I finally decided to write a one-stop-know-it-all article that would take readers the "real" step-by-step guide to opening a Mutual Funds account

However, there are a lot of Mutual Fund companies in the Philippines so I can't write a step-by-step guide for each of them. So for me to be able to lay-out the specific steps in just one, short article (regardless of the company you wanted), I would need a service provider that could help us do that -- RSA.

Rampver Strategic Advisors (RSA), is a division of Rampver Financials, a creative niche player in the financial services industry. Rampver Strategic Advisors is actively involved in money and asset management advisory, mutual fund distribution, financial planning, training and consulting.

Now before you get hyped on all the articles you were able to read and jump start your way to financial success, it's important that you truly understand what you're about to do with your money first. Here, I have summarized the five easy steps you would need to invest in Mutual Funds:

1. Understand what Mutual Fund is
It is necessary that you know what you're doing with your money. You must understand the basic concepts of this type of investment to be able to prepare yourself financially and psychologically. Remember that unlike a regular savings account on a bank, a Mutual Fund investment is not guaranteed by the Philippine Depositor's Insurance Corporation or PDIC. If that scared you, then you might want to re-consider your decision first, or read more about the subject until you fully understand the concept.

Ask yourself:
Do I understand what I'm doing?

2. Decide where you want to invest
Here's a quick cheat list on the Mutual Funds companies here in the Philippines that is currently offered by Rampver Strategic Advisors:
  • PhilEquity
  • Soldivo
  • Metrobank
  • ATR-King 
  • PhilAm
In reality, there is no such thing as best investment company, because every Mutual Fund company relies on the same stock market, with just different investment strategies. While it's true that past performance does not guarantee future results, these historical values are sure helpful when it comes to deciding which company you will choose.

Historical Performance of Equity Funds [Click to enlarge +]:
Fund Performance History of Mutual Funds - Philippinessource:
Ask yourself:
Which among these companies have solid historical returns?

3. Determine the type of fund for your investment horizon
After you have decided which Mutual Fund company to invest, the next step is to determine the type of fund you want to open with them. Normally, they offer at least 3 types of fund:
  • Bond (Low Risk, Low Returns)
  • Balanced (Medium Risk, Medium Returns)
  • Equity (High Risk, High Returns)

To help you determine the type of fund for you, you may take the sample risk profiling test for free here.

Ask yourself:
Do I understand the risks involved with this type of fund? 

It is best to decide early on how long do you want to keep your money invested. This is to ensure that you stay committed to your investment goals. Think of the possible things that could make you decide to withdraw your investment such as, when it already reached a certain amount or when your reach a certain age.

Ask yourself:
How long do I plan to invest my money?

4. Fill-up an application form
Once you're committed to investing your money, you may download the application form here. Please note that having a Tax Identification Number (TIN) is required when filling-up an application form, regardless of the company you have chosen. In addition, you need to submit at least one photocopy of a valid government-issued ID.

In case you don't have a valid TIN yet, you may get one here. 

Why is TIN required, by the way?
TIN or Tax Identification Number, issued by the Bureau of Internal Revenue (BIR), is a mandatory field required when applying for investments because it's one of the ways that help AMLA (Anti-Money Laundering Act) to regulate investments. Such body exists in order to monitor any illegal activities such as funding of terrorist activities, or keeping track of our beloved politicians' money. Ha-ha!
What are some of the valid Government-issued IDs again?
  • Unified Multi-Purpose ID
  • Driver's License
  • Passport
  • Postal ID
If you're residing outside Manila (or Philippines) and  you'll be sending the documents via courier, you wouldn't want your application be denied just because you miss to sign a particular portion of the application form. 

Finally, you can send the accomplished forms together with the photocopy of your valid ID (make sure you sign the photocopy)  to me. (Please email me at so I can provide the address to you).

NOTE: Scanned or photocopy of documents are not allowed.

Ask yourself:
Have I signed all portions of the document that requires my signature? 

5. Deposit your initial investment
DO NOT DEPOSIT your money until your application form has been reviewed by a Certified Investment Solicitor (CIS) from RSA. You will be notified once your application forms were verified so you can fund your investment. If you have any doubt, ask or make a call! As one Chinese Proverb says, He who asks a question is a fool for five minutes; he who does not ask a question remains a fool forever!

Ask yourself:
Am I 100% sure that I want to start investing to achieve financial freedom in the future?

- o0o -

Sit back. Relax.
Enjoy a cup of coffee while waiting for the confirmation notice (that you will receive via e-mail). You just made a life-changing move by investing. Tap your back and say, I'm an investor. I'm contributing to the wealth-building of my country's economy!

What's next?
Once you've opened an account, you should monitor your investment at least twice a year. Don't stop from just opening an account. Continue to grow your investment by religiously adding investments on a monthly basis. Happy investing!


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1 comment:

  1. Jerome IsipJanuary 22, 2016

    Hi Sir, I sent you an email about it, I want to start investing in Mutual Funds. I hope you reply. Thanks ~ Jerome


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