How To Build A Portfolio in Mutual Funds


Mutual Funds Portfolio

Interested to start investing in mutual funds but don’t know where to start? It’s not that complicated once you know how to build a mutual fund blueprint or mutual funds portfolio.

It’s similar to building a house. A structure that can stand the test of requirement: Have a smart design, strong foundation and a simple combination of mutual funds. Here are some basic rules of how to build a portfolio in mutual funds.



Don’t Put All Your Eggs in One Basket

We’ve heard of this sage advice so many times. To build your mutual fund portfolio, always DIVERSIFY. By spreading your investments into different funds, you minimize the risks that comes with it.


Mutual Fund Allocation for Portfolio

Understanding the nature of High Risk, Moderate and Conservative Funds is very important in fund allocation. What type of investor are you? What fund allocation suits your investor profile? There are different types of fund categories: mid-cap stocks, small-cap stocks, foreign stocks, fixed income instruments, sector funds, money market funds. Determine your asset allocation depending on your risk tolerance and financial requirements.



Related: How to Open a Mutual Funds Account with Sun Life Asset Management

For beginners, you can start by investing the minimum investment amount. Different companies have different minimum amounts but on average it is usually P5,000 only.


Begin with your ‘core’ fund, save up, then purchase your next fund. Continue building your portfolio one at a time.


Determine Which Mutual Fund is Best For You!

There are many types of funds for you to choose from. Each of these funds have their own risk profile. To learn more about them, view this link: Determine Which Mutual Fund is Best For You!



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Money Monkeys

Money Monkeys seeks to educate on topics related to finance, entrepreneurship, and the rising fintech innovations. We provide easy to digest articles with the aim of raising financial literacy, cultivating a growth mindset, and harnessing the spirits of fellow entrepreneurs.

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