Mutual fund investing deemed more practical, convenient option
AS MUTUAL funds become very appealing to those who want to start their investments small but gain relatively big, a wide array of products have been introduced in the market, all promising good returns.
Philippine Investment Funds Association Inc. (Pifa) chair Valerie N. Pama noted in a recent interview that “investing in mutual funds is practical and convenient.” She, however, cautioned new investors “to understand that the different types of funds have different characteristics and various levels of risk.”
To guide first-timers who want to invest in mutual funds, here are some of the available products from fund management companies belonging to Pifa:
First Metro Asset Management Inc. (Fami), a subsidiary of First Metro Investment Corp., manages and distributes the following mutual funds:
Save and Learn Equity Fund’s portfolio mix is composed mainly of stocks listed on the Philippine Stock Exchange (PSE) and has an “aggressive” risk profile for those seeking long-term capital growth. Initial minimum investment requirement is only P5,000
Balance Fund aims to gain from long-term capital appreciation from a combination of market gains from PSE-listed stocks and interest income from fixed-income securities
Fixed Income Fund goes for “long-term capital preservation and reasonable growth” on investments in purely fixed income securities, more than half of which
are typically short-term instruments
Dollar Bond Fund requires an initial investment of at least $1,000 for investment in US dollar-denominated fixed income securities, time deposits, and other deposit substitutes
One Wealthy Nation Fund, a balanced mutual fund that offers long-term growth and regular dividends
Philippine Equity Exchange Traded Fund
Sun Life Asset Manage
ment offers its Prosperity Funds, “a family of funds that caters to various risk appetites and investment horizons.” These are as follow:
The Money Market Fund has the “least risk” but also the “lowest possible returns”
Government Securities or GS Fund is invested in domestic, government-issued fixed income instruments. It has “minimal yield guarantee but is considered the safest of all the funds”
Bond Fund is recommended to medium-term investors who want to gain from a mix of corporate and government debt
Balance Fund invests in both bonds and equities
Dynamic Fund gains by rebalancing its portfolio between equities and fixed income assets
Equity Fund was designed for those investing for the long term (seven years and beyond) with an
end in view of generating his/her investment’s maximum capacity to earn” from PSE-listed equities
Dollar Abundance Fund takes advantage of corporate- and government-issued debt in markets overseas such as Canada, Europe, Japan and the United States
Dollar Advantage Fund capitalizes on US dollar investments in foreign exchange-denominated bonds and stocks
Philippine Stock Index Fund was created for investors with moderate to high risk appetite willing to pour money into the stock market
Philam Asset Management
Inc., which claims to be one of the biggest asset and wealth managers in the domestic mutual fund industry with more than P40 billion in assets under management as of the end of 2014, offers an array of mutual fund options, for potential investors with small or large amount of capital and a conservative to aggressive risk appetite. It offers the following:
Philam Strategic Growth Fund, its largest mutual fund, is an equities-based fund for aggressive investors and offers potential returns and inflows from shares in companies listed on the PSE
Philam Fund is geared toward the “less adventurous investors” as it offers a combination of fixed-income investments in bonds and stocks
Philam Bond Fund, which
caters to conservative investors, invests exclusively in domestic government bonds
Cocolife Asset Management
Co.Inc. is the investment manager as well as principal distributor of three mutual funds: United Fund, Cocolife Fixed Income Fund and Coco Life Dollar.
United Fund is invested in a diversified portfolio of blue chip and growth stocks
Cocolife Fixed Income Fund is invested in corporate bonds, government securities and other high-yield fixed income securities
Coco Life Dollar Fund Builder invests in high-grade dollar bonds and global securities
ALFM Mutual Funds under
BPI Asset Management claims to be “the first and only fund portfolio that offers a true multi-currency stable of mutual funds.” Investments could start at as low as P5,000, $500 or 500 euros.
It has six products to choose from: Peso Bond Fund Dollar Bond Fund Euro Bond Fund MoneyMarket Fund Growth Fund Philippine Stock Index Fund
PhilEquity Management Inc. is an investment management company. It is the investment manager and principal distributor of Philequity Fund Inc. It offers the following:
PhilEquity Fund—invests primarily in equity securities of listed local firms
PSE Index Fund—buys and sells a proportionate number of shares of the stocks in the PSEi to track as well as close match its per-
‘Investor should understand that different funds have different characteristics and risk levels’
formance
Dividend Yield Fund—invests in listed equity securities that pay out dividends
Peso Bond Fund—invests in government securities, commercial papers, corporate bonds, promissory notes, among other debt instruments
Dollar Income Fund—invests in Philippine-issued dollar-denominated bonds as well as those issued by foreign governments and corporations
According to Pama, it is important that investors choose the type of mutual fund that would help them reach their goals. Whether one wants a short- or long-term investment, or to gain slowly but surely or in a snap, there’s a mutual fund that can cater to every one’s needs and wants.