What Are the Fees Involved In Investing in Mutual Funds?

There are several fees involved in investing in Mutual Funds, which differs depending on the Mutual Fund Company you invested in. Here they are:

Entry Fees

As the name implies, these fees are charged once the mutual fund company received your investment. The following are the corresponding Entry Fees of the Mutual Fund Management Companies.

·         PhilEquity Management, Inc. – Maximum of 3.50%

·         First Metro Asset Management, Inc. – Maximum of 2.00%

·         PhilAm Asset Management, Inc. – Maximum of 5.60%

For example, you have invested Php 5,000, say, in PhilEquity Fund, and the NAVPS during your investment date is Php 20.00. The total shares that you will be buying at that date equals the Net investible amount (Php 5,000 less 3.5% entry fee) divided by the NAVPS of Php 20.00 – or 241 shares.

You may download the complete matrix of Entry and Exit Fees here.

Exit Fees

Each Mutual Fund Management Company employs different minimum holding periods for your investments. The holding period does not lock or make your investments inaccessible, however, it somehow limits you from withdrawing your fund, since doing such, will be costly somehow.

·         PhilEquity Management, Inc. – 2 years holding period @ 2% of the total fund to be withdrawn

·         PhilAm Asset Management, Inc. – 6 months holding period @ 1.12% of the total fund to be withdrawn

·         First Metro Asset Management, Inc. – 6 months holding period @ 1% of the total fund to be withdrawn

If funds are withdrawn within the minimum holding period, it is subject to Exit fees. However, if it is withdrawn over the minimum holding period, exit fees will no longer be charged.

Management Fee

Since investing in Mutual Funds are investments that let you hire professional Fund Managers, there are corresponding fees that you have to pay for their services.

·         PhilEquity Management, Inc. – 1.50% annually of funds under management

·         PhilAm Asset Management, Inc. – ___% annually of funds under management

·         First Metro Asset Management, Inc. – 1.75% annually of funds under management

Management Fees are already included in the computation of the NAVPS.

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