Financial intermediaries such as mutual funds, pension funds, and insurance companies operate by accumulating money from investors and offering it as financial assistance to individuals and businesses. Mutual funds pool money from share sales and channel it to borrowers, while pension funds are set up by businesses to pay employee pensions and invest contributor funds. Insurance companies invest pooled premium funds in high-yield securities and real estate loans.
Financial intermediaries such as mutual funds, pension funds, and insurance companies operate by accumulating money from investors and offering it as financial assistance to individuals and businesses. Mutual funds pool money from share sales and channel it to borrowers, while pension funds are set up by businesses to pay employee pensions and invest contributor funds. Insurance companies invest pooled premium funds in high-yield securities and real estate loans.
Financial intermediaries such as mutual funds, pension funds, and insurance companies operate by accumulating money from investors and offering it as financial assistance to individuals and businesses. Mutual funds pool money from share sales and channel it to borrowers, while pension funds are set up by businesses to pay employee pensions and invest contributor funds. Insurance companies invest pooled premium funds in high-yield securities and real estate loans.
Financial intermediaries -Acts as a middle person between two
parties – the investor and the borrower.
• How does it operate?
• Financial raise accumulate money from investors and offer the accumulated money to individuals or corporate entities in of financial assistance. Mutual funds • Accumulate money by selling • ALFM Mutual Funds. shares of stocks or bonds of • Bonds, Equities, Securities and Traders, publicly – listed corporations to Inc. (BEST, Inc.) individuals or corporate • BPI Asset Management and Trust Corporation. investors and the proceeds are • First Metro Asset Management, Inc. pooled together and channeled ( FAMI) to borrowers. • Land Bank of the Philippines (LANDBANK) • Investors receive fair share in the • Metrobank Unit Investment Trust Funds. form of dividends or stock price • Philam Asset Management, Inc. appreciation. • Philequity Management, Inc. Pension funds 5 of the Best Retirement Fund Methods in • Is set by business for the purpose of the Philippines paying the pension requirements of all private sector employees who retire from 1. Pension Plans - provide you with monthly business organization upon reaching their allowances or a whole lump sum amounting to your total contributions. ... retirement age. 2. PERA. The Personal Equity Retirement • The employees who contribute to Account (PERA) has been fully implemented pension fund receive return on their by law in 2016. investment in the form of dividends and securities appreciation. 3. Insurance Plans. 4. Financial Funds. 5. Real Estate. Insurance companies • Acts as financial intermediary by pooling together of insurance policies sold to the public and investing funds in a high yield maturing securities from investment houses. • Money is accumulated from insurance premiums and lend either in medium or long term loan to companies engaged in real estate.