Savings Account Vs. Mutual Funds

​Every little bit counts, so rather than looking for one big way to save a ton of money, save in lots of small ways and set yourself up for success.

Saving money is the best gift you can give to your future self. Wealthy people invest first and spend what's left, and broke people spend first and invest what's left.

Don't just save your money, learn to invest. Savings and Investing are two different things. This is how you know the difference.

Savings Account

• Good for: purchases and emergencies
• When you want to: Keep money safe
• Risk involved: Low
• Earning power: Low
• How much you need to start: As low as Php 100 (As low as Php 500 minimum maintaining balance to earn interest)
• If you need the money, you can: Withdraw anytime (or after a pre-set period of time)

Mutual Funds

• Good for: Long-term Goals
• When you want to: Make money grow
• Risk involved: Low to High*
• Earning power: Potentially Higher*
• How much you need to start: As low as Php 5,000
• If you need the money, you can: Sell anytime (just allow for 7 days' processing)

*Depending on type of investment

​Kinds Of Mutual Funds

Equity

• 75%-90% invested in stocks
• Average annual return: 15%-20%
• Medium risk, Higher risk compared to other Mutual Fund Types
• For aggressive investors
• Ideal for long-term growth (5 years or more)​

Balanced

• 50% in stocks, 50% in fixed-income securities
• Average annual return: 10%-15%
• Medium risk, Moderate risk compared to other Mutual Fund Types
• For balanced investors
• Medium to long-term growth (3-5 years or more)​

Fixed-Income

• 100% in fixed-income securities
• Average annual return: 6%-10%
• Medium Risk, Lower risk compared to other Mutual Fund Types
• For conservative investors
• For long-term capital preservation (5 years or more)​

Money Market

• 100% in short-term fixed-income securities
• Average annual return: 1%-2%
• Medium Risk, Even lower risk compared to other Mutual Fund Types
• For very conservative investors
• For short-term capital preservation (1-2 years)​