MFC Fund

If you are new to investment, you may find these steps helpful in order to get started.

Step 1. Define your investment goals

Since the nature of your investment goals can have an important impact on the types of investments you should make, and the proportion of your investments you should place in any particular investment type, you should clearly define your goals which can be as follows.

How much do you have to save?
How much you have to invest is important to defining your goals. There is no use planning to save a large amount a month, if after taking into account your living expenses you are only left with a little. Setting yourself realistic goals will help you stay motivated.
What are you saving for?
Knowing how much you can afford to save each month, will help you work out how long it will take for you reach your goals. Are you saving for the long or short term? A trip for your vacation or to fund your retirement?
What is your timeframe?
Now you know what you're saving for and how much you can afford to save, you can be realistic about how long it will take to achieve your goals. Having an actionable timeframe will help you to stay on track.

Step 2. Set a plan and stick to it

Having defined your investment goals, the next step is to set an investment plan which will allow you to achieve them! There are a few key points to remember in setting your plans. The first and most important point, is to get started now. Thinking that you may 'get around to' doing something about your investments can be a very costly exercise in terms of opportunity forgone.

Step 3. What to expect from your investments

Now that you have defined your goals and set your plan, it's important to know what to expect from your investments. Different investments suit different timeframes and offer varying levels of risk and return. Investing in managed funds allows you to diversify your investments. All investment funds have cash, fixed interest, shares and property as their building blocks. What to expect from each asset class, and the investment timeframe appropriate to each is described below:

Cash investments include term deposits and bank bills which generally have short investment terms of up to 180 days. Cash provides a return of income in the form of regular interest payments. While cash produces the most stable returns of all investment asset classes, the potential for high returns over the long term compared to other asset classes is relatively low.

Fixed interest securities operate in the same way as a loan; the investor pays a set amount for the fixed interest security and in return the investor receives a regular interest payment from the borrower. At the end of the term, the security 'matures' and the borrower repays the loan amount to the investor. Fixed interest securities generally provide a return of income in the form of interest payments but can provide capital growth or loss if they are traded before they mature. Fixed interest investments are generally more suited to investors seeking a more consistent rate of return over shorter time periods, however, there is lower potential for capital growth.

Shares represent part ownership of a company and are generally bought and sold on a stock exchange. Returns from shares may include capital growth or loss and, depending on the share, income through dividends. Shares are generally classified as riskier investments than the other asset classes because their value tends to fluctuate more over the short term. However, over the longer term they have tended to perform better than other asset classes.

Property is an investment in 'bricks and mortar'. The main property types are commercial, residential, retail and industrial. Many investors invest in property through property trusts which own a number of real property investments. Units in a property trust are generally listed on a stock exchange and are bought and sold like other types of securities. Returns from listed property trusts may include capital growth or loss and, depending on the type of property owned by a trust, income from rentals. Units in property trusts can also experience short-term volatility like other types of securities.

Step 4. Assessing your investment options

Now you have defined your goals, set your financial objectives and understand what to expect from your investments, long or short term, it is time to find the right fund for your needs. You may wish to first read the section on Investment Tips.

Step 5. Invest with MFC

Getting Started