Here’s a systematic investment plan offered by First Metro Asset Management Inc. (FAMI). It is called Monthly Investment Program (MIP).
FAMI’s MIP was launched in 2009 to enable employees to instill financial discipline on their selves and at the same time start on a regular savings program for as low as P1,000 per month. It is designed specifically to help employees achieve the savings discipline. Not only that, by investing one’s savings in a mutual fund, the employee is able to achieve much higher value growth than simply investing in a savings deposit or a time deposit.
If you are an employee, MIP is a voluntary salary savings program that can help you save in a disciplined and automatic way. This MIP involves a voluntary salary deduction, which your company places or invests in a Save and Learn mutual fund of your choice. This is purely voluntary, and therefore it’s up to you to decide whether you (a) want to have an automatic salary deduction, and if so (b) in which Save and Learn mutual fund you wish to invest your savings.
FAMI’s Monthly Investment Program has many great advantages. It it very convenient, easy on the pocket, enforces financial discipline and applies the cost of averaging strategy.
How to Join the Program:
1. Open an account in any of the Save & Learn mutual funds. The initial investment should be at least P 5,000.
2. Open a Metrobank savings account and enroll in their Auto Debit or Metrobank Direct facility.
3. Coordinate auto debit arrangements with your FAMI representative.
4. Any additional investment should be at least P 1,000.
Here are the answers to frequently asked questions about the MIP
Q. What is the Monthly Investment Program (MIP)?
MIP is a facility that enables employees to invest as little as P1,000 per month in any of the FAMI managed funds through salary deduction. Deductions are made once a month coinciding with one payroll period.
Q. How can I join the MIP? (If your company is partnering with FAMI in offering FAMI Monthly Investment Program)
There are only three steps to follow:
Step 1 — Accomplish the necessary documents (which you can get from your HR department): (a) Account Opening Form; (b) Signature Card; and (c) Authority to Deduct.
Step 2 — Provide a photocopy of two valid, official I.D.s
Step 3 — Submit all these documentations to your company’s HR department.
Q. Can I invest more than P1,000?
P1,000 is the minimum amount necessary to enroll in the program. You can certainly invest more. You can also start with P1,000 and change it to a bigger amount later on.
Q. When and how can I withdraw (redeem) my investments?
You can withdraw part or all of your investment by selling back (or redeeming) your shares any time you wish. Just fill out the Redemption Request Form and submit it to your HR department. (Blank forms are available from your HR department.) When you do, we will buy back the amount of shares you want to redeem at the prevailing rate on the day you instruct us to do so. Please note that a small redemption fee may be charged in case you redeem within six months from your investment. See the prospectus of your fund for details.
Q. How to make changes in your MIP?
Once you have joined the MIP, you may make the following changes to your investments: (a) you may increase the amount of monthly savings; (b) you may decrease the amount of monthly savings; (c) you may discontinue your monthly savings; (d) you may change the Fund that you wish to be investing in.
• To stop the salary deductions, simply write a note addressed to H.R. indicating your intention to do so.
• To change the amount of deduction or the Fund to invest in, fill out a new Authority to Deduct form and submit it to HR department.
Q. How long should I invest?
Ideally you want to keep making the monthly investments so that you can save enough to meet your goals. You may invest as long or as short as you want, depending on when you expect to achieve your goal. Remember that successful investing is not a matter of timing but rather a matter of time. The longer the time you have for saving and investing, the higher your chances to succeed.
Q. What happens to my investment if I leave the company?
First of all, the automatic deductions will stop, of course. Second, your investment belongs to you, whether you’re still with the company or not. Our records will show that you own the investments. You may therefore keep the money invested, if you wish, even if it is invested in the name of your company (because you haven’t met the minimum amount required to invest on your own name). You could transfer it to your name, but you will have to add enough investments to meet the minimum. If you want, you may also redeem it (withdraw it); if so, you may contact us directly.
Q. Where is my savings going to be placed — equity? balanced ? money market? or fixed income fund?
You will have to decide by yourself in which mutual fund you want to invest in. Your company will not make the investment decision for you. You have to indicate your choice in the Authority to Deduct form, and in the account opening forms. You need to understand the nature of each of your choices well, and you may seek advice from our staff.
Q. Which fund should I choose?
There are four types of Save and Learn mutual funds that you can choose from. Each one has a different risk and return characteristic, ranging from low, very modest returns with mild fluctuations (Money Market Fund), to high potential returns but large fluctuations (Equity Fund). Your choice will depend on when you will need your funds and for what purpose, and how much risk you are prepared to tolerate.
For further information or inquiries, visit or contact FAMI at:
First Metro Asset Management Inc.
18 th Floor, PSBank Center 777 Paseo de Roxas Ave. corner. Sedeno St. Legaspi Village, Makati City
Tel. nos.: (632) 891-2860 to 65
Fax no.: (632) 816-0467