Arnold Umipig gets this question a lot: “What if I don’t want to trade stocks? Can I still grow my money?”
As a Registered Financial Planner (RFP), his answer is always the same: Absolutely. You don’t have to be glued to stock charts to build wealth.
“For people who don’t have the time—or interest—to follow the market every day, mutual funds are a smart, professional way to invest,” he tells Financial Adviser PH. “They’re managed by experts, diversified, and accessible even if you’re starting small.”
So how do mutual funds work—and why are they perfect for beginners or busy professionals? Umipig breaks it down.
Mutual funds 101: Let the pros do the work
When you invest in a mutual fund, you’re pooling your money with other investors. That combined capital is then invested in a mix of assets like stocks, bonds, or short-term securities. A professional fund manager handles all the decisions—so you don’t have to.
“It’s one of the best entry points for people who want growth without the stress of stock-picking,” Umipig says.
Pick your flavor: Local, global, or safe and steady?
Here’s a quick guide to the different types of mutual funds:
Local Equity Funds – Invest in Philippine-listed stocks. Great for long-term growth, but expect some ups and downs.
PSE Index Funds – Track the top 30 companies in the country, like Jollibee, SM, and Ayala.
Global Equity Funds – Want to invest in the U.S. or Europe? These give you access to international markets, even using pesos.
Bond Funds – Low risk, low return. Think of it as the “steady Eddie” of investments.
Money Market Funds – Safer than stocks, with returns usually higher than bank deposits.
What the pros do: A sample ₱1M investment mix
“If I had ₱1M to invest, I’d go with a 35-35-30 mix,” Umipig shares. “That’s 35% in Global Funds, 35% in Local Funds, and 30% in Fixed Income like bonds. It gives you exposure to growth while keeping some money safe.”
The bottom line
You don’t need to day-trade to build wealth. Mutual funds let you invest like a pro—without the anxiety. With just a few smart choices, you can grow your money while still living your life.
