Sample Composition

Cash

91D T-Bills

180D T-Bills

Time Deposits

Commercial Papers

Sample Composition

Cash

Bank

Holding

IT

Telcos

Mining

Media

Real Estate

F & B

Sample Composition

Cash

Blue Chip Companies

Gov't Securities

Sample Composition

Cash

T-Notes

T-Bills

Fixed-Income Instruments

Commercial Bonds

Rampver Strategic Advisors (RSA), is a division of Rampver Financials a creative niche player in the financial services industry. We have grown a substantial base of delighted clients since 1993. We are actively involved in money and asset management advisory, mutual fund distribution, financial planning, training and consulting. We help individuals in their quest for effective financial planning, personal pension and retirement plan implementation. On the institutional area, we provide assistance in the design, execution, implementation of employee savings and investment programs that lead to an efficient and strategic management of funds. Our linkages with the major movers and players in the Philippine capital market put us at an advantage in providing timely fi nancial advice to our clients to help them maximize returns on their investments within well managed risk parameters. As a third-party distributor with a selective open-architecture that is focused on performance, we are the partner of choice for mutual fund investments in the country.

An investment company that pools

money from numerous investors

through the issuance of its shares to

the public.

The pooled funds are then invested by

professional fund managers in various

securities according to the investment

objectives and policies of the company.

Types of Mutual Fund

How Does it Work?

Money Market Fund

Composition Short-term fixed-

income instruments

Objective Stability plus

minimal growth

Ave. earnings p.a. 1%-2.5%

Recommended

length of stay

Below 1 year

Risk Profile Very low

Bond Fund

Composition Fixed-Income

Instruments

Objective Stability plus

reasonable growth

Ave. earnings p.a. 4%-6%

Recommended

length of stay

1 to 2 years

Risk Profile Low

The Investment Vehicle

Balanced Fund

Composition Stocks and fixed-

income instruments

Objective Medium to long-

term objectives

Ave. earnings p.a. 12%-15%

Recommended

length of stay

3 to 5 years

Risk Profile Moderate

Stock Fund

Composition Shares of stocks;

“equity funds”

Objective Long-term capital

growth

Ave. earnings p.a. 15%-18%

Recommended

length of stay

More than 5 years

Risk Profile Aggressive

What is a Mutual Fund?

Unit 6F, 6th Floor, PDCP Bank Center, V.A. Rufino cor.

L.P. Leviste Sts., Salcedo Village, Makati City, Philippines

Tel Nos.: 812-1995/894-1811

Email: info@rampver.com

Website: www.rampveradvisors.com

Affluence

Providing Simple Steps to Wealth Creation

Our Mutual Fund Partners:

Advantages of Mutual Funds Frequently Asked Questions

Professional Management One of the main attractions of mutual funds is the fact that it affords its investors,

particularly the small ones, the services of full-time professional managers whose focus is to analyze the various investment products available in the market and actively select those that would give the best possible returns to the fund and its shareholders. Low Capital Requirement

Direct investments usually require substantial capital. The minimum investment amounts for Treasury Bills and commercial papers, for instance, range from Php100,000.00 to Php1,000,000.00 depending on the bank or investment house you are dealing with. This also holds true for stocks because while an investor may be able to buy one “lot” (shares are sold in board lots of 10 to 1 million shares depending on the price at which these shares are traded) for as low as Php1,000.00 to Php5,000.00, he may not find a stockbroker who will service his account because they prefer to deal with high net worth individuals (rich people in layman's terms) or at least with people who have substantially more than just Php5,000.00 to invest. In contrast, most mutual funds in the Philippines require a minimum initial investment amount of only Php5,000.00 and minimum additional investments of Php1,000.00. Diversification There is a saying that goes, “Do not put all your eggs in one basket.” This is especially true in the world of investments which is full of uncertainties. There is no such thing as a “sure” thing. An important investment principle that requires holding several securities to reduce the risks associated with investing in individual securities is called diversification. When people invest in a mutual fund, they achieve instant diversification because the fund is required by law to invest in a wide array of securities. Liquidity Liquidity is the ability to readily convert investments into cash. Other investment products require investors to find a buyer so that he can liquidate his 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 redemption proceeds must be given within seven (7) banking days from the date of the redemption request, most funds are able to pay the redemption proceeds within 2-3 banking days. Mutual funds are, therefore, considered very liquid investments. Safety Safety is a very important consideration for most investors. Sometimes even more important than potential returns. Nevertheless, mutual funds are highly regulated by the Securities and Exchange Commission under the Investment Company Act and its implementing rules. They are prohibited from investing in particular investment products and engaging in certain transactions. They also have to submit regular reports to the SEC as well as to their shareholders. All of the fund's assets must be held by a highly reputable commercial banks for safekeeping. Potentially Higher Returns Because a mutual fund is managed as a single portfolio, it is able to take advantage of certain economies of scale. For instance, with its billions under management, it can negotiate for lower stockbrokerage fees or command higher interest rates on fixed-income investments. In the end, however, it is still the investment adviser who really makes the big difference between making direct investments and investing in mutual funds because very few individual investors can match the experience and skill of full-time professional fund managers. Convenience In other countries, mutual funds can be purchased directly through a broker, financial planner, bank or insurance agent, by mail, over the phone and increasingly over the internet. The popularity of mutual funds in the Philippines is fast catching up. It may be a matter of time for this level of convenience to be a reality in the country. Funds also offer a variety of other services, including monthly or quarterly account statements, tax information, and 24-hour phone and computer access to fund and account information.

Tax-Free Gains realized by investors upon redemption of their shares in a mutual fund have been excluded from the definition of gross income effective January 1, 1998 and are, therefore, not subject to personal income tax (R.A.# 8424).

How much will I earn if I invest in mutual funds? Mutual funds are not time deposits and therefore do not pay out a fixed rate of

return. Mutual funds are invested in stocks listed on the stock exchange as well as bonds issued by the government and corporations where values differ daily. As a result, the value of your investment fluctuates daily depending on the performance of its underlying instruments. Funds’ earnings are not fixed but are very flexible, at an average of 6-18% a year. Over the long run, mutual funds usually outperform traditional time deposit placements or short-term money-market funds.

Can I lose money in mutual funds?

As with any investment instrument, investing in mutual funds involves a certain amount of risk. Stock and bond prices go up and down daily so does the value of your mutual fund investments.

Depending on market conditions, there may be periods when the value of your investment can be lower than the actual amount that you invested.—“paper loss”. But unless the investor redeems these shares, these paper losses will not be realized.

Additionally, there are ways in which fund managers apply investment strategies in order to seize opportunities and avoid losses, and while there are risks in mutual fund investing, the returns can also be very rewarding most especially in the long-run. Is my investment covered by the Philippine Depository Insurance Corporation (PDIC)?

No. A mutual fund is not a deposit product, therefore, it does not need to be covered by the PDIC. However, mutual fund shareholders are entitled to their proportional share in the total assets of the fund. The PDIC on the other hand, can only insure up to P500,000.00 of your total deposits with a bank and not your entire investment amount. Moreover, mutual funds are liquid instruments as these are invested in marketable securities .

How do I invest in a mutual fund?

You can invest in a mutual fund by buying its shares from fund management companies or through licensed brokers. The money you will invest will be converted into number of shares. This is computed by dividing the amount by the current price or the Net Asset Value Per Share or NAVPS. What is the Net Asset Value Per Share, or NAVPS?

The Net Asset Value Per Share (NAVPS) is the price of the mutual fund’s share. A fund's NAVPS is computed daily. It is the price used when buying or selling mutual fund shares. These are published daily in newspapers (ie. Businessworld, Business Mirror, etc.)

What if something happens to me?

Your investment will form part of your estate and will be distributed to your heirs (usually surviving spouse and children) accordingly. However, it will be subject to estate tax which your immediate family would have to settle first before they will be allowed to claim the investment proceeds. To ease the transfer of the fund shares of a deceased investor, assigning a co-investor upon initial investment is suggested. What if RSA closes, what will happen to my investment?

Your investment will remain intact because you are invested directly in the mutual fund company and not in RSA. RSA is the financial intermediary between the fund management companies and the investors.

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