mamaravesph's blog: How to Open a Mutual Fund Account for your Child

sample of a Mutual Fund Kit
from Sun Life Financial

So, you are sure your kid is getting a lot of “angpao” or Christmas money this season from his/her godparents? Why not open an IN-TRUST FUND for your child? You just need Php5,000 to get one!

If you want to know how to do this, just follow these instructions:

1. Choose the Mutual Fund company / Financial company you want to invest in. There are so many Mutual Fund companies available in the market, and each one have their information on the internet. The ones I know are Sun Life Financial, Philam, First Metro (Metrobank), Philequity and ATR Kim Eng. Just do your own research and where you think you can trust your child’s ‘hard-earned money’.

2. Contact your Mutual Fund Representative (if you know someone) or contact your chosen Mutual Fund company so they can provide you with a Mutual Fund representative. I think you cannot invest in a Mutual Fund, unless you talk to a Mutual Fund rep (they need a license to sell this investment). Be sure to set up an appointment on a place and time you are comfortable and have a lot of time to spare to listen and discuss this investment with your Mutual Fund rep. He/She has to explain the investment you are getting, the funds you can choose from and process all your papers.

3. Let the Mutual Fund Rep explain the whole product to you and listen intently. The explanation might be long and very hard to understand, but try to digest it and how it will work specifically for your child’s money. He/She will introduce to you different funds to choose from and analyze your risk appetite (if you are conservative or aggressive when it comes to investment), then explain the management fee (or charges) about the fund you may choose.

4. Ask a lot of questions. Ask questions that may help you understand the investment better. Ask questions to clarify things you don’t understand and things you think you understand. Ask questions that will touch present and future transactions too, like how to withdraw from the fund, how long to process subscribing and getting out of the fund and charges to your fund.

5. Fill up the Risk Profile Questionnaire. This form is like a survey that will help the company and your mutual fund rep analyze what kind of investor you are, what you look for an investment and how long (more or less) you intend to stay invested. This survey is for you, and although this is your child’s money your kid needs you to answer this for him/her.

6. Fill up the Application Form. This will contain information about you and of course, your child. Don’t forget to mention to your mutual fund rep that this fund is specifically opened for that purpose. In this application form, they will ask you basic information about your child.

7. Provide your Tax Identification Number (TIN). From what I know, all Mutual Fund companies require a TIN from a parent opening the account. So, make sure you have a copy or just a record of your TIN.

8. Provide a photocopy of your government I.D. and a photocopy of the child’s NSO issued birth certificate. Mutual fund companies usually requires photocopies of two (2) ID’s from the parent, and one (1) ID has to be government issued. For your child’s record, they may also require a photocopy of your child’s NSO issued birth certificate.

9. Give specimen signatures on the Application Form. This will seal the deal and give the mutual fund rep a go signal to process your subscription or purchase of a fund. This will also serve as their record to check on signatories, in case you need to do a partial withdrawal or completely withdraw from the fund.

10. Pay Php5,000. Really it is that cheap! If you want to add little by little, you can also do so for as low as Php1,000.

11. And finally, ask for an Acknowledgment Receipt or Receipt of Purchased/Subscribed Fund. This is the proof of your investment and payment. You may ask for a Certificate of Investment after they process your application.

Congratulations! Your child is now a young investor! Just don’t forget to add up to your child’s fund every now and then and I’m sure he will be assured of his future.

I hope you find this simple and easy to follow. And I hope you find it useful too that you can apply it to your child’s application.

If you want to start this for your child, let me know and I can refer you to a Mutual Fund Representative. Just email financialfredomblueprintPH@gmail.com or text 0905-2382277

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