So you decided you want to open a mutual fund account with FAMI?
This article describes the process and explains how to fill out the required forms.
The 3-Step Account Opening Process
Step 1: Fill out the set of forms.
The detailed instructions on how to do this is outlined the the succeeding paragraphs below.
Step 2: Submit the forms.
You have two options on how to go about submitting the form to us.
- Option #1: Submission to any FAMI Investor Center in the Philippines. We have four FAMI Offices in the Philippines: Makati, Binondo, Cebu and Davao.Note: It doesn’t cost anything to send the documents to us.
- Option #2: Initially, Via Email. This is just to fast-track the account processing. But then you still have to do Option #1 above later on, because we will be filing your application details in the office.
Either way, you will be getting a FAMI Account Code. Once you have your FAMI Account Code, that’s when you can start your investment.
Step 3. Wait For Your FAMI Account Code.
We will start processing your account opening application after we receive the above forms either via email or once it arrives in the branch. If everything is already okay, then you will be notified via email or SMS of your assigned FAMI Account Code. Only then can you start making an “initial deposit” to your investment account.
That’s it. As easy as 1-2-3.
But that’s just the start of your investment journey. There are other things you need to know such as the following:
- Being able to monitor and track your investment.
- How to switch from one fund to another.
- How to withdraw (redeem) your investment in part or in full.
- Answers and advice any investment questions.
- And what to do in case there is a problem. It happens sometimes.
Believe me, sooner or later, you will be needing to do one of these things. And when that happens, you would wish you have someone on your side to assist you with the process.
Luckily, you don’t have to do it alone.
As your FAMI Mutual Fund Advisor, I am here to assist and guide you first and foremost.
And once you are already our investor, you will know that other team members and staff will be there to assist you as well as you go along your investment journey. You will have their names and email addresses.
In FAMI, we work as a team to ensure you have the right support when you need it the most. In fact, I will give you the email address and/or contact details of the other FAMI staff whom you can communicate to for help and other questions.
Your FAMI Mutual Fund Advisor
Just so you know you are dealing with someone who truly represents FAMI (short for First Metro Asset Management, Inc), I am showing you below a portion of the SEC Certificate that was issued to me by no less than the Securities And Exchange Commission.
Simply click (or tap on smartphones or tablets) on that image and you’ll get a bigger view of the certificate.
How to Fill Out The Investment Forms
Assuming you have a copy of the set of forms required for opening a mutual fund account, below are the detailed instructions on how to fill out the forms.
ACCOUNT OPENING FORM
- Account Name — Leave BLANK. FAMI will be the one to fill this out.
- Nominated Bank Settlement Account — Optional. This will be used when you request for redemption/withdrawal. Please indicate “N/A” if
you don’t want to put bank information here.
CUSTOMER DATA SHEET
- Type of Account — Check on of the boxes. For Joint Account and ITF/ FAO, please coordinate with me first. There are special instructions for this.
- In Trust For (ITF) Account is recommended if you have kids below 18 years old. Again, please contact me for details.
- FATCA Compliance — For individual investors who are residing in the US or are US Citizen, you need to indicate so by checking the appropriate boxes. Additional requirements will be required from you, so please check with me as well.
- Name of FAMI CIS / TPR / Dealer — Please write “Carlos Velasco”
- Agent Code — Please indicate “117-CAV”
SUITABILITY ASSESSMENT FORM
- Assesed By — Please write “117CAV — Carlos Velasco III”
- Waiver of Suitability Results — Please leave it BLANK. I will be the one to make the score based on your answers.
Additional comments on the following check boxes:
- I/ WE AGREE WITH THE RECOMMENDED INVESTMENT FUND APPROPRIATE TO MY/OUR RESULTING CLIENT INVESTMENT PROFILE.
— If you check this, you would aggree to my recommended fund(s) only, thereby limiting your choices.
- I/ WE DO NOT AGREE WITH THE RECOMMENDED INVESTMENT FUND APPROPRIATE TO MY/OUR RESULTING CLIENT INVESTMENT PROFILE AND WOULD L IKE TO BE RE-CLASSIFIED ACCORDINGLY.
— If you check this, you can invest in all of our funds, but please be sure you understand the risks inherent in aggressive funds like the Save and Learn Equity Fund (SALEF).
TERMS AND CONDITIONS
- Signature Verified By — Please indicate “117CAV — Carlos Velasco III”
CERTIFICATION OF KYC RELIANCE
- Please leave all fields here BLANK.
For other relevant information you need to know before you start investing with us, please read the succeeding paragraphs.
FAMI Mutual Fund Fees
Now, here’s perhaps one of the most important piece of information that every mutual fund investor should be aware of. And these are the fees associated with investing your money.
This is a one-time fee and charged only to every new investment that you place to your fund.
|Entry Fee||Total Fund Accumulated (in Peso)|
|2%||1,000 to 99,999|
|1.5%||100,000 to 499,999|
|1%||500,000 to 1,999,999|
|0.5%||2,000,000 and above|
Sample Client Statement of Account
It is easier to understand how this thing works in practice by showing you an actual Statement of Account (SOA) of a client who placed an Initial Investment of P 5,000 last January 20, 2016. This was requested last February 01, 2016.
Please take a look below.
As you can see, the Entry Fee is P 100 ( that’s 2% of 5,000) so the Net Investment is P 4,900. The NAVPS (Share Price) at that time was P 4.7271, from which the client was able to purchase 1,037 worth of SALEF Shares. (So that’s P 4,900 / P 4.7271 per share = 1,037 shares.)
And on Feb 01, twelve days after, the NAVPS was at P 4.9276, the fund value is already at P 5,109.92 ( computed as: 1,037 shares x P 4.9276 / share.)
Clear now? So, are you still worried about the 2% entry fee when, if you could get lucky, you can recover it in a matter of a few days?
But remember not to take a gambler’s attitude. Investing should be approached with a long term view and not just with short-term gains.
If you decide to redeem (withdraw) your investment placed within six months, you’ll be charged with an Exit Fee equivalent to 1% of the amount redeemed. Beyond the six-month period, there is no more Exit Fee and all proceeds are yours… no Capital Gains tax, whatsoever.
What this means to you as an investor is that, mutual funds are very liquid investments, you can withdraw it anytime, without even waiting for a buyer to buy your shares.
This is the money every investor (big or small) of the fund pays to FAMI every year for doing its job of managing the investment. That’s an annual flat rate 1.875% charged the total fund value. This is accrued daily, so that translates to 0.0078125% fee per day. As an investor you don’t feel this anymore, because the Net Asset Value Per Share (NAVPS) is already net of this expense.
Note: SALEF and SALBF has a management fee of 1.875%, while the Save and Learn Fixed-Income Fund (SALFIF) and the One Wealthy Nation Fund (OWN Fund) each as 1.75% management fee.
( Ready to start investing? Click here to inquire. )
Mutual Fund Fees Explained
Think of all these mutual fund fees this way: Imagine, you are running your own business.
- The Entry Fee is your cost when buying your inventory at wholesale or servicing your clients. Can you keep this cost within 0.5% minimum up to 2% maximum? That’s a tough job even for a business tycoon!
- The Management Fee is the cost of running your business — office rent, electricity, payroll, transportation, permits and licenses, your talent fee, etc… you name it. Can you keep this cost at a fix annual rate of 1.875%? I doubt!
As a mutual fund investor (or would be investor) you have to keep in mind that investing here is a lot like running a business. The main difference is that you are not directly involved in its daily affairs. That is, you are far removed from all the hassles of its day-to-day operations.
I’d like to say that it’s a hands-off business. We part owners of the business — indeed because we are shareholders of the fund — but someone else is running it for us.