How to Start a FAMI Individual Account (and some thoughts on the Colayco Foundation)

I first learned about First Metro Asset Management Inc. (FAMI) when I attended a half-day seminar conducted by the Colayco Foundation. The speaker said that FAMI-SALEF (Save and Learn Equity Fund) was his mutual funds of choice and we would all do very well to open accounts there as well and take advantage of the high returns. However, he also emphasized how inconvenient it was to open a FAMI-SALEF account. How you'll have to go to the FAMI office in Makati to fill out forms and the same goes if you want to make additional investments. According to him, you'll have to take a day off from work and go to Makati, while you also have to factor in your commuting expenses and how much you will spend for your lunch or dinner during the day, double or triple this if you're bringing someone else with you.

Whew! He almost sold me on joining the Colayco cooperative, since the cooperative will do everything for you, and all you need to do is pay their yearly membership fee. However, a quick check with the FAMI website showed that it was very easy to open an account and make additional investments. It was so easy and the information was available in the website for everyone to access, that I had to wonder how the speaker could lie with impunity. Seriously, if you're going to lie about something, you better make sure that you won't get caught with a quick Google search. And that's why I don't trust the Colayco group anymore.

Anyway, without any BS, here's how to open a FAMI account

For your initial investment, you need to:

1) Read a copy of the prospectus- it's long and boring in parts, but it will give you an idea how FAMI will invest your money. It will also give you a background on what to expect with your investment without promising fantastic returns like the much-troubled Aman Futures Group. However, even when the market tanked and the worldwide economy was up in the air, mutual funds still outperformed savings accounts and time deposits, so that's saying a lot.

2) Click here for the downloadable forms (it's actually the same link that leads to the prospectus) and click on For Individual Account under the Account Opening heading. Print out the Account Opening Form. On the same page, print out a signature card and an investment application form.

3) Fill out the Account Opening Form (AOF), Investment Application Form (IAF) and Signature Cards and submit the documents together with a photocopy of two IDs.

4) Make your first Php5,000 investment either with cash (I don't recommend this though unless you open your account directly with the FAMI office) check or bank deposit with Metrobank. Click here for the account details.

5) Submit a copy of the accomplished forms and deposit slip and fax to (02) 816-0467 or email at FAMI@firstmetro.com.ph, then forward the originals to their  office address, or you can pouch it to any Metrobank Branches near you. FAMI Pouch Code# 90020. For checks received, booking of investment will be made upon clearing of the check.

And that's that. Expect your confirmation receipt to be sent to you by courier a few days after booking.

My friend pouched her forms through a Metrobank branch and she received her confirmation receipt almost 2 weeks after she dropped off her forms. Apparently, Metrobank doesn't send out the forms to FAMI right away, and only does so after a few days. On the other hand, I sent mine via courier and received my confirmation receipt about 4-5 working days later.

For additional investments, you can do so via bank deposit through Metrobank again or through Metrobank Direct, as you would a regular bill. Here's the link with full details and it's pretty straightforward.

The website says that you don't need to fill out an Investment Application Form (IAF) for additional investments, but my friend who made a bank deposit, called FAMI and was informed that she needed to fill out an IAF and fax or email the same with the deposit slip. I don't know why the FAMI rep and the FAMI website are saying different things, so don't ask me.

I made my additional investment using Metrobank Direct, following the video in the site to the letter, and received my confirmation slip within the week (3-4 working days later).

I chose to invest in the Save and Learn Equity Fund (SALEF) because I'm already subscribed in balanced funds with Sun Life, so this is my version of diversifying. To date, after only two months, my SALEF fund is up by 2.11%, which is just fantastic! Kaya ba yan ng savings account niyo?

P.S.
Hold on to your confirmation receipts and keep them in a safe place because you'll need those to redeem your shares.