Why I Also Plan to Get More Into Feeder Funds



Well, it looks like the Philippines is hitting a bear market, right? It would be good to start buying some depreciated stocks with money that I don't need for now. As always, it means that I shouldn't put all my savings into stocks and keep a good amount for daily use, and for any bills I have which include my AXA Chinese Tycoon Fund. What I'm focusing with the Chinese Tycoon Fund is long-term. Now, it's time to put a certain amount of money in feeder funds to. Once again, I suggest doing it slowly until it becomes a habit. It's like starting with small things then they will become bigger things. 

The Peso Lab - Money Guide for Filipinos explains the feeder fund (which is also a Unit Investment Trust Fund or UITF) in this way:
What is the purpose of feeder fund? 
There are ways to purchase securities. People can buy stocks from the stock market and retail treasury bonds from the government. They can also go to banks, trust companies, and mutual fund companies. There are funds too that allow investors exposure to foreign securities.

So why is there a need for a feeder fund? Because it allows people to get exposed to diversified portfolio here and abroad.

Say that you’d like to invest in US stocks. You have two options: open an account with a stock broker that accepts non-US customers. There are several outlets like Charles Schwab, Interactive Brokers, TD Ameritrade, etc. And you’d go through an account opening process that is longer, requires various documents, requires a high starting capital, etc.

And the other option is through feeder funds. It can be relatively easy and there is no need to open an international stock brokerage account to be able to invest in foreign shares.

Granted, I don't intend to directly open many accounts abroad so feeder funds (through GInvest or any similar platform) can be helpful. Recently, in GInvest there are two funds available namely the ATRAM Global Technology Consumer Trends Feeder Fund and the ATRAM Global Technology Feeder Fund. Since these are equity funds--this would mean I get stocks (based on fund picks) in companies like Apple, Samsung, and Amazon depending on the fund. I've hit my target investment for the Philippine Smart Equity Index Fund. Now, I feel I might invest a certain target sum into the two funds. I think it would be good if I started to invest in the ATRAM Global Technology Feeder Fund next after I've hit the target mark (confidential) for ATRAM Global Consumer Trends Feeder Fund. I sold my previous fund to test my trading skill and didn't make much. Maybe, it's time to make a horizon for all three. I plan to invest conservatively knowing these are aggressive funds. My current appetite is moderately aggressive for now. 

References

"Philippines Feeder Fund What It Is And How To Invest"

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