I pity the guy who invests in stocks directly — picking companies based on their names, just like they do during political elections — without first learning the fundamentals or even asking if there are alternative investments.

For the first time investors, Mutual Funds is the way to go — if going to sleep soundly at night is part of your investment objective!

But first things first! Get to know the fundamentals.

Cash, Bonds and Stocks are the three big Asset Classes that make up the composition of most Mutual Funds in the Philippines.

I’d like to call this article Mutual Funds 101 and this is really for those who are curious about this investment vehicle.