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Mutual Funds is Good for Starters

Mutual funds

This is a guest post by Jeremias. He introduced himself.

My knowledge regarding stocks or investments I would say is quite on the average compared to people on the same age as I am, 15 years old. My parents introduced me to mutual funds when I was seven years old and I place money there on a yearly basis. I have quite saved a large amount of money ( for me), but I intend to use it at my senior years.

For me it is impressive, and I am happy, to meet a young man like Jeremias who is interested in saving and investing cash in such young age. I believe, if he continues educating himself in investing, he will be able to retire early. Very early.

Money has been a critical need in life. Without it, the world will be different in so many ways. So, to earn money, people have thought and develop methods to acquire such. Investments are among these, aside from looking for the regular types of work. The idea in investment is lending money to companies for them to use in the improvement of their products and the company itself. In return, they give credit to the person who lent money by giving the person an interest to his/her money.

I, myself, have quite an experience in such. Though I may only be a minor, I have earned quite a lot from investing in mutual funds. You might ask what a mutual fund is or how it is related to investments. Mutual fund is a branch of investment where only a small amount of money is required to be able to invest. Brokers or fixers combine the money invested by other clients and after they have collected enough, they are going to invest it on well-known companies. By the time the money of the clients receive their return in value, they have the choice to take their money or let it grow in the company. The broker divides the returns equally among clients.

I started learning the idea of investment when I was about seven years old. My parents introduced and taught me about it. I actually did not really understand at the start. All I understood was that I had to place money on either the minimum amount or more than that, then, I have to wait for months for it to grow. In addition, I need to place money regularly for it to grow faster. A few years later, I understood its idea on how to earn money. It is almost similar to the idea of the interests gained by banks through credit card, but instead of them gaining the money, it is the investor having more money. However, the process is somewhat different. Banks gain money in interests through credit cards not paid on the due date, whereas, investments depend on the rise and fall of the stock market.

My very first placement was only on the minimum, but I place money annually. Until now, I continue placing money so it would continue to grow. Thanks to my annual placements, my principal money has increased a lot. I actually plan to use it in the future during my senior years. You may also be interested to do so. One time while I was listening to our local radio station here in the Philippines, I heard an interview about mutual funds. It made me more interested in mutual funds because according to the example of the professional being interviewed, placing even a peso (one American Dollar is equivalent to 43.38 Pesos)annually can turn any person into a millionaire in thirty years. I have thought, what more if someone would place thousands of pesos annually, the person would be likely to sit by and enjoy life more on his/her senior years.

Investments can start at any age. As long as the person is interested in it, he/she has a great chance of becoming one of the world’s millionaires in the future. It is, of course, recommended to start at an early age since the idea in mutual fund is long-term investment. So, become an investor now. Start it and build your future.

7 responses to “Mutual Funds is Good for Starters”

  1. Congratulations on getting started at such an early age Jeremias! You are wise to stay away from individual stocks and invest in mutual funds. I would encourage you to invest monthly so that you can dollar-cost-average and choose index funds.

    • Jeremias says:

      Thank you for an uplifting comment!

      However, regarding the monthly placement, it is still quiet impossible because I am still studying college and my monthly savings are not enough to be placed. They do not reach the minimum. On the other hand, I am able to place a lot of money on a yearly basis from the money I get to collect every Christmas from my relatives. I also save money through “piggy banking” and place the money on my passbook when it is full. If I have saved a lot on my passbook, I place a large amount on my mutual fund.

  2. Little House says:

    Wow, I’m very impressed that someone so young is interested in investing! I think it’s great to start young and keep the momentum going. I personally like mutual funds myself. They seem a little easier to manage.

  3. […] 6. Mutual Funds is Good for Starters @ Hello Suckers. […]

  4. Joe says:

    Great job! I agree with JC. Starting early will give you a huge advantage later in life.

  5. Jeremias says:

    Thank you for such a great comment! I hope the article I posted would help a lot of people. Not only the younger ones but also those who are interested in such.

  6. Congrats on starting VERY early! Time and consistently investing new capital are pretty much the only things you can control when it comes to investing. Starting at 15, or I assume earlier, gives you a huge advantage over 99.9% of your peers and sadly a good chunk of those in their 20’s. Those extra years of compounding will give you big rewards later.

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