The Philippine Mtual Fund Industry Swot Analysis
The
Philippine
Mutual Fund Industry
Alcantara, Zara R.
Aranez, Carissa G.
Claur, Dhessa A.
Libang, Jam Hazel C.
Orense, Allaine
F4D
Organizational Analysis
The mutual funds Industry in the country is one of the leading investments that Philippine capital market could offer. If an investor engage himself if in mutual funds then his investment will be manage professionally. A financial adviser will be hired the investment company to help choose where to place your money. In relation with his you’ll be having an access a boarder range of investment instruments such as equities, fixed income and real estate. Another, thing mutual fund has a low tolerance on risk through diversification. Finally, an investor whose considering to put his money in mutual fund would be delighted because of its lower transaction costs and minimum capital requirement of Php.5,000 only.
There are a lot of disadvantages that Philippine mutual funds industry is facing. First on the list is that the industry remains small after 41 years. Since the incorporation of the first mutual fund in the country which was Filipinas Mutual Fund at the end of 1998 there were only 15 investment companies participating in the industry with total assets of only 3.3 billion. In addition to this there only 14 open-ended companies and only are closed-ended company each having 6000 and 8000 investors respectively. There were less than 200 SEC-licensed mutual fund salesmen. Obviously this will affect the operation of the investment companies engaging in mutual funds because the promotional activities is very minimal and so it generate lower income thus affecting the return of the investor. Secondly, the level of accountability & reliability of the industry was not that good because out of 222 companies only 50 are generally considered to be truly investment grade companies.
Environmental analysis
There a lot of external factors that the mutual funds industry of the Philippines had.
Philippine
Mutual Fund Industry
Alcantara, Zara R.
Aranez, Carissa G.
Claur, Dhessa A.
Libang, Jam Hazel C.
Orense, Allaine
F4D
Organizational Analysis
The mutual funds Industry in the country is one of the leading investments that Philippine capital market could offer. If an investor engage himself if in mutual funds then his investment will be manage professionally. A financial adviser will be hired the investment company to help choose where to place your money. In relation with his you’ll be having an access a boarder range of investment instruments such as equities, fixed income and real estate. Another, thing mutual fund has a low tolerance on risk through diversification. Finally, an investor whose considering to put his money in mutual fund would be delighted because of its lower transaction costs and minimum capital requirement of Php.5,000 only.
There are a lot of disadvantages that Philippine mutual funds industry is facing. First on the list is that the industry remains small after 41 years. Since the incorporation of the first mutual fund in the country which was Filipinas Mutual Fund at the end of 1998 there were only 15 investment companies participating in the industry with total assets of only 3.3 billion. In addition to this there only 14 open-ended companies and only are closed-ended company each having 6000 and 8000 investors respectively. There were less than 200 SEC-licensed mutual fund salesmen. Obviously this will affect the operation of the investment companies engaging in mutual funds because the promotional activities is very minimal and so it generate lower income thus affecting the return of the investor. Secondly, the level of accountability & reliability of the industry was not that good because out of 222 companies only 50 are generally considered to be truly investment grade companies.
Environmental analysis
There a lot of external factors that the mutual funds industry of the Philippines had.