Frequently Asked Questions

1. Which is better, Stocks or Mutual Funds?
2. What is the best mutual fund company?
3. What is a VUL?
4. What is Ghost Month?
4. What is the PSEi?
4. What is the “DAW” Theory?

1. Which is better, Stocks or Mutual Funds?

Some smart investors are torn between investing in mutual funds or in the stock market.

The stock market is a place where you can be part of a business and become a partner of your favorite businessmen.
To understand this investment better, read: “Be a Partner with Business Tycoons”

When you invest directly in the stock market, you have the freedom to choose which companies to buy. That is your choice. The time to buy and the amount also depends on you.

Now, for people who do not have the time, patience, and expertise to monitor the market, they have an option to invest in a mutual fund.

The advantage of this investment is that it is managed by a fund manager who will make the investing decisions for you.

Another advantage is that a mutual fund investment is diversified. For a small amount of money, the fund manager will invest in several investments which would not be possible if you invested by yourself.

But one disadvantage of Mutual Funds are its fees. Part of the premium you pay goes to the agent who sold you the product. You are also paying for the fund manager who is running it. And if you are investing in an equity fund, you are also paying for the stock broker who buys and sells the stocks. Make sure that if you invest in mutual funds, you are well informed about these things.

If you already have knowledge about the stock market and time to do it, why not do it yourself?

Having said these things, only you can answer which investment is good for you.

2. What is the best mutual fund company?

For the list of the different mutual funds company and their performance, you can visit



Go to the Facts and Figures section located on the lower part of the page.

3. What is a VUL?

Confused between getting an insurance policy and investing in mutual funds? There is a simple explanation to your problem!

Insurance is designed for you and your family’s protection in case of unforeseen circumstances. On the other hand,having mutual funds is a way to invest in stocks, bonds and money market with the help of a fund manager. You can get both at the same time.

A VUL (Variable Unit Linked) is insurance with an investment. Sounds complicated? Relax. Here’s how it works:

Part of the premium that you pay for a VUL is invested in mutual funds. Therefore the policy holder protected by insurance also has an automatic investment that can grow over time.

So if you are planning to get insurance, you have an option to invest as well in the form of a VUL.

4. What is Ghost Month?

“Ghost month” refers to the seventh month in the lunar calendar when it is deemed unlucky to make big investments. This period begins Aug. 7 and will run through Sept. 4. (source: Business Inquirer)

Ghost Month

5. What is the PSEi?

PSEi meaning

PSE Composite index - latest

6. What is the DAW theory?

YOU make the decisions about your investments. Do not be impressed with photos of portfolios showing impressive results or technical charts showing that it’s the end of the world of stocks.

Go back to basics. Do your research. Ask questions. Learn. Make sure the research and recommendations that you get come from experienced and licensed professionals and organizations.

As always, #AralMunaBagoInvest

DAW Theory meaning