Last updated February 2020
Have you considered investing in the best investment funds in the Philippines in 2020?
If YES, this article can help you decide on the best mutual funds to invest in the Philippines.
Finding the best mutual funds in the Philippines is difficult.
First, the best performing mutual funds change from year to year.
You should also understand that just like any other investment, risk is unavoidable when investing in mutual funds.
Although mutual funds are safer than investing in stocks themselves, there are some drawbacks you should be aware of.
First, you have no control over your portfolio
invest in mutual fundsThis will make you lose control of the stocks in your portfolio.
Basically, you invest in a group of stocks that your fund manager has pre-selected through careful research.
Therefore, you should choose the best mutual funds in the Philippines based on its overall performance.
You should research how fund managers choose which stocks to include in your portfolio. And how these stock withdrawals can affect your monthly or annual returns.
2. Fees and Expenses
To maintain your investment account, your additional investments are subject to certain fees and charges.
When you look at the big picture, these costs are small compared to your total investment. But if you add and subtract all the deductions from the current performance, you see how annoying this reason is.
Every time my mutual fund makes an additional investment, I get deducted about Php 20 to Php 30. Php Php 960 to Php 1440 total can be 240 more shares for me if I split it into the lastFirst Metro Savings and Learning FundNAV per share Php 5.9.
All the best mutual funds in the Philippines have these different fees that you may be paying without knowing it. Others don't bother to check these details and lose a lot as a result.
Consult your relationship manager or fund manager to find out what costs may be associated with your investment.
Ultimately, lower risk can mean lower returns
Diversity is paramountAdvantages of investing in mutual funds.
With your investment of Php 5000 you can buy shares in various stocks. With direct equity investments, your investment of Php 5,000 only allows you to buy 100 shares of Puregold. However, your return from investing in mutual funds is slower compared to stocks.
i investedFive-year equity funds, and the current ROI is still less than 10%.
Now that I also have direct equity investments, I realize how difficult it is to get a sense of return when it comes to mutual funds. However, since I keep my mutual fundspull backI really don't care that much. All I know is that I make a much better income than putting money in a regular savings account.
In short, investing in the best investment funds in the Philippines does not guarantee large returns in a short period of time.
Invest now, invest regularly and invest for the long term - these three phrases are the fund's secret to retiring the wealthy.
But the question is: what is the best mutual fund to invest in the Philippines in 2020?
This article gives you a ranking of the top mutual funds in the country based on their investment returns over the past year.
Hope you enjoy today's post!
related:
7 Advantages of Mutual Funds
Understanding managed funds as investment vehicles in the Philippines
Personal Equity and Retirement Funds (PERA) in the Philippines
A mutual fund is a type of investment in the Philippines where your investment is pooled with other professionally managed investments invested in specific types of securities.
Visualize it this way:
You invest in a certain type of investment fund. The money from you and other investors is pooled by an investment fund.
Your mutual fund will act as a fund manager and invest money in stocks, mutual funds and other stocks.
Basically, investing in mutual funds is like investing indirectly in the stock market. It is like a regular savings account where you can top up investments from 1k but the ROI is much higher as it is invested in stocks.
Read more -My first six months in the Philippine stock market
1. Low initial investment
Opening a mutual fund account only costs 5,000 pesos, which is a very reasonable amount whether you earn minimum wage or higher. All you need to do is start saving the aforementioned initial investment and for additional investments you can pay only 1,000 pesos per month! ! !
2. Differentiation
When you open an investment account, all the money you invest is split between several companies that have been intelligently selected by experts.
3. Convenience and economic efficiency
In a mutual fund, you have no pressure to buy or sell or other important conditions, so what in the stock market. The administrator/company you open your account with does everything for you. All you have to do is invest extra every month. This saves you time, effort and extra transport costs.
4. The principle of compound interest
If you've gone to college in financial management, you've heard the term compound interest. Compound interest is your best investment partner. The longer your money is on the exchange, the more interest it earns. Even if you stop investing after five years, as long as your money is in an investment account, it will still earn interest and you will become a millionaire. This principle exists in every investment account.
5. No other taxes
This is the real reason mutual funds are beneficial. This is not taxable. All your investments stay with you without any tax deductions. What you see in the paper asset is the same when you redeem it.
6. Regulated by the SEC
Having support for every investment you make is really good. Fortunately, investing in mutual funds is regulated by the Securities and Exchange Commission, so you don't have to worry about your investment going bust. Make sure you invest in genuine and regulated mutual funds.
7. Flow report
Liquidity is easier with mutual funds because the company allows you to actually see what's happening with your investments. Everything collapses, which gives you an advantage over other investments. Accessing mutual fund information is also easy as they are just a phone call or email away and they send the information to your email address in real time.
Read more -13 things I did to improve my finances
The best mutual funds in the Philippines are divided into four types:
1. Share capital
2. Bond Funds
3. Money Market Funds
4. Balance of Funds
As a recent reader question I answered, the types of mutual funds above are further characterized by composition (where to invest), horizon (how long you need to invest to see investment returns), objective (why you invest), and risk (what type of investor are you? you).
The table below will help you decide which type of Best Mutual Funds in the Philippines is right for you.
Another type of mutual fund to look out for is an index fund. I have made a detailed guide to index funds in this article -Invest in mutual funds for beginners.
Just find out if mutual funds are the right investment vehicle for you. Consider the following questions:
If you don't have trust issues, this is for you
If you can't entrust your hard-earned money to others, mutual funds may not fit your investment needs.
Mutual funds are like savings accounts that you deposit money into.
Then a professional money manager will market your money and make the money for you.
If you are investing for the long term, this is for you
Mutual funds will not make you an instant millionaire.
You should expect your money to build wealth in a slow but steady manner. For example, a capital of 25,000 pesos invested in a money market fund can grow to 2-3 million after 20-25 years. (This depends on the type of fund you invest in).
If you're willing to wait, mutual funds are for you
If you are a beginner, it is for you
Mutual funds are one of the easiest ways to own stocks/units. You will not be bombarded with hard financial terms.
You don't have to worry about deciding which stocks to buy or sell, because a trusted fund manager does it for you.
additional capital.I invested in mutual funds when I was 19 and started investing in the direct stock market when I was 22 (this year). Both investment vehicles have performed well so far.
Now that I have covered all the basics of mutual fund investing, this list of the best mutual funds in the Philippines 2020 will be updated from time to time to give you a clear comparison.
Note that the Net Asset Value per Share (NAVPS) used in the table below is as of December 26, 2019.
| fund name | YTD ROI | 1 year ROI | 5 year return on investment (ROI). | 10 year return on investment (ROI). |
|---|---|---|---|---|
| joint venture | 4,86% | 5,07% | 2,65% | 4,57% |
| Sun Life Prosperity Philippine Equity Fund, Inc. | 4,21% | 4,48% | 0,99% | 8,71% |
| Philam Strategic Growth Fund, Inc. | 3,93% | 4,26% | -0,01% | 5,36% |
| Philequity Fund Society | 3,87% | 4,10% | 0,66% | 11,33% |
| Philequity Dividend Income Fund Company | 3,02% | 3,22% | 0,70% | not available |
| Eerste Metro Save and Learn Equity Fund, Inc. | 1,36% | 1,92% | -0,59% | 9,79% |
| ALFM Growth Fund Society | 0,33% | 0,62% | -0,43% | 7,83% |
| Rising Equity Investment Company | 0,21% | 1,20% | not available | not available |
| Company for strategic growth fund Soldivo | -0,60% | -0,33% | -1,68% | not available |
| ATRAM Alpha Opportunity Fundsmaatschappij | -4,33% | -2,68% | -3,36% | not available |
| ATRAM Philippine Equity Opportunities Fund Corporation | -5,31% | -4,94% | -3,17% | 7,29% |
| MBG Equity Investment Company | -10,98% | -12,80% | not available | not available |
| Philippine stock market index | 5,04% | 5,27% | 1,90% | not available |
| fund name | YTD ROI | 1 year ROI | 3 year return on investment | 5 year return on investment (ROI). | 10 year return on investment (ROI). |
|---|---|---|---|---|---|
| PAMI Horizon Fund, Inc. | 7,62% | 7,65% | 3,50% | 0,50% | 6,74% |
| Philam funds | 6,88% | 7,06% | 3,39% | 0,42% | 7,12% |
| Phils & Company NCM-fonds | 6,62% | 6,70% | 3,97% | 1,30% | not available |
| Sun Life Welvaart Fonds Limited | 6,18% | 6,28% | 3,95% | -0,12% | not available |
| Sun Life Prosperity Balanced Fund of Canada | 6,11% | 6,36% | 4,44% | 0,82% | 6,82% |
| Eerste Metro Save and Learn Balanced Fund Inc. | 3,67% | 4,11% | 3,95% | -0,99% | 8,08% |
| Solidarity Fund Society | 3,18% | 3,24% | 2,98% | 1,14% | not available |
| Grepalife Balanced Fund Company | 1,92% | 2,04% | not available | not available | not available |
| ATRAM Philippine Balanced Fund Corporation | -1,02% | -0,58% | 0,28% | 0-1,26% | 6,71% |
| ATRAM Dynamic Allocation Fund company | -5,11% | -5,04% | -1,39% | -3,95% | 5,15% |
| Over Metro Save and Learn F.O.C.C.U.S. Dynamische Fondsmaatschappij | not available | not available | not available | not available | not available |
| fund name | YTD ROI | 1 year ROI | 3 year return on investment | 5 year return on investment (ROI). | 10 year return on investment (ROI). |
|---|---|---|---|---|---|
| Philam Bond-fonds | 11,54% | 11,54% | 2,85% | 1,77% | 4,12% |
| Sun Life Canada Prosperity Bond-fonds | 11,18% | 11,35% | 4,90% | 2,67% | 4,09% |
| Sun Life Welvaart GS Fund, Inc. | 10,63% | 10,63% | 4,45% | 2,21% | 3,62% |
| Soldivo Bond fund | 8,01% | 8,01% | 1,52% | 0,11% | not available |
| Philequity Peso Bond Fund, Inc. | 7,38% | 7,75% | 2,99% | 1,42% | 4,78% |
| Eerste Metro Save and Learn Fixed Income Fund, Inc. | 6,97% | 6,81% | 2,39% | 1,58% | 6,03% |
| Cocolife Fixed Income Fund Company | 4,64% | 4,88% | 5,21% | 5,21% | 6,33% |
| Church Investment Fund | 4,44% | 4,35% | 2,46% | 1,96% | 4,19% |
| ALFM Peso Bond Company | 4,18% | 4,21% | 2,83% | 2,33% | 3,95% |
| Grepalife Fixed Income Fund Company | 2,69% | 2,80% | 0,99% | -0,13% | 2,08% |
| ATRAM Corporate Bond Fund | 2,27% | 2,32% | 0,00% | 0,00% | 2,35% |
| fund name | YTD ROI | 1 year ROI | 3 year return on investment | 5 year return on investment (ROI). |
|---|---|---|---|---|
| Philam Managed Income Fund, Inc. | 6,29% | 6,35% | 3,04% | 1,71% |
| ALFM Money Market Mutual Fund Company | 4,05% | 4,11% | 2,86% | 2,18% |
| Sun Life money market fund | 3,68% | 3,74% | 2,88% | 2,34% |
| Ταμείο First Metro savings and learning money market | 3,29% | not available | not available | not available |
| fund name | YTD ROI | 1 year ROI | 3 year return on investment | 5 year return on investment (ROI). |
|---|---|---|---|---|
| First Metro Stock ETF | 5,96% | 6,18% | 7,07% | 2,88% |
| Philequity PSE Index Fund Society | 5,72% | 5,93% | 6,43% | 1,95% |
| Filippijnse Equity Index Fund Corporation | 5,63% | 5,85% | 6,34% | 1,90% |
| Sun Life Market Philippine Equity Index Fund, Inc. | 5,25% | 5,46% | 6,07% | not available |
| PAMI Equity Index Fund Company | 4,58% | 4,79% | 5,79% | not available |
| First Metro Consumer Fund Inc. | 3,95% | 4,21% | not available | not available |
| Eerste Metro Save and Learn Philippine Index Fund, Inc. | 2,39% | 3,07% | 0,06% | -3,49% |
| Philequity MSCI Philippines Index Fund Society | -1,25% | not available | not available | not available |
1.Based on www.pifa.com.ph
2. ROI means return on investment
3. Not available indicates that the fund has not yet reached the year-to-date, 1-year, 3-year, 5-year or 10-year limit for which the ROI will be calculated.
Here are some observations worth noting:
1. The best mutual funds in the Philippines can change in a few months
It's hard to predict mutual fund rankings because the stock market itself is a big bubble.
The top position is more difficult to maintain because different fund managers use different investment strategies.
It can be difficult to choose your fund provider based on past performance, as there is no guarantee that the fund will perform the same in months or years to come.
Past results can be very difficult. It's fine to choose your mutual fund provider based on past performance, but keep in mind that there's no guarantee that your provider will always perform the same or better.
2. Returns can also be the deciding factor for you
Looking at the rankings, every fund in the Philippines has very close year-to-date and 1-year performance.
However, the 5-year and 10-year returns are very different.
If you want to invest your money and see returns in a short period of time, you can choose the best mutual funds based on annual returns or annual returns.
However, if you are investing for the long term, choose the mutual funds with the highest 10-year returns.
How do you fit into this when choosing where to invest in 2020?
If your goal is to invest your money in vehicles that will give you the best return in less than a year, choose United Fund, Inc., PAMI Horizon Fund, Inc., Philam Bond Fund, Inc., Philam Managed IncomeFund or First Metro ETF
However, if you are going to open a mutual fund account as part of a long-term or retirement plan, I recommend First Metro Save and Learn Equity Fund, Inc. or Philequity Fund, Inc., which is among the top 10 - Lists of annual returns.
3. Mutual funds are just another available investment vehicle
You need to realize that a mutual fund is just another investment vehicle such as the stock market, Mutual Fund Mutual Funds (UITF),Individual Equity Retirement Account (PERA), time deposits and even Bitcoin.
Each investment instrument has its own advantages and disadvantages.
It is important to understand this so that you can consider which investment vehicle is right for you. Also, explore other investment vehicles that may meet your financial goals.
The key here is not to put all your eggs in one basket. If you can afford to diversify into other investment vehicles, do so.
For example, I continue to diversify my investments by researching new vehicles that become available. I work in the Philippine stock exchange and online farming or crowdfunding.
4. The best strategy is (still) investing for the long term
Due to the degree of volatility or volatility in the stock market,better strategyOr hold onto your stocks for a long time.
In hindsight, if I hadn't invested my extra money in mutual funds, I would have wasted all my money on makeup and skin care.
AndYes, these can give me a moment of happiness, but watching my money grow in mutual funds has a different effect.
if you have money left13th month salaryor other bonuses from the previous year, try investing in a mutual fund of your choice.
Invest this money for a long time and reap the rewards.
Investing in mutual funds is easy.
Depending on the financial institution you entrust your investment to, you may be required to produce/show the following documents:
1. Visit the website of the asset manager of a mutual fund of your choice.
2. You can easily find the pages for investment funds and/or investment products on their website.
3. Read the differences per investment product. Choose your funds based on your personal investment goals, investment horizon and risk profile.
reading:Reader question | Where should I invest my money?
4. Download the necessary form. This depends on the asset manager of the mutual fund you choose.
advertisementThis is required and has been filed with the Securities and Exchange Commission.This document provides comprehensive information on investment products and the facts an investor needs to make an investment decision.
account opening formRequired for your reference and other personal reference.
Investment risk assessment questionnaireThis will understand your investment risk profile and match you with the right companies to invest.
5. Make a copy of a valid ID.
6. Is the initial investment ready? The initial investment in a mutual fund account ranges from 5,000 pesos to 10,000 pesos.
7. Submit all your requests. You may need to go to the nearest office or send it by mail. For example, Sun Life launched an online tool that allows you to add, transfer and redeem shares anytime, anywhere. With First MetroAsset, I submit all forms and requirements through a Metrobank branch to open my account.
8. Wait for proof of purchase and/or statement to arrive.
9. Fund your account.
This article will be updated from time to time to provide you with the latest investment performance profile of the top investment funds in the Philippines.
Mutual funds are a great investment tool for those new to the stock market. It's a great option for your retirement fund, so it's a good idea to invest early, or better yet, invest now.
Mutual funds are by far the most popular investment vehicle for beginners. It is affordable, convenient and adjustable. But there are also bad and ugly sides to investing in mutual funds. It is important to note that every investment has vulnerabilities, just as every investment carries risks.
FAQs
Best Mutual Funds in the Philippines - 2020 Update? ›
As of February 2023, First Metro Consumer Fund, Inc. was the leading mutual fund company in the Philippines, with a one-year return of about 8.77 percent. ATRAM Alpha Opportunity Fund, Inc. followed this, with an 8.64 percent ROI.
What is the best mutual fund in the Philippines? ›As of February 2023, First Metro Consumer Fund, Inc. was the leading mutual fund company in the Philippines, with a one-year return of about 8.77 percent. ATRAM Alpha Opportunity Fund, Inc. followed this, with an 8.64 percent ROI.
What is the best mutual fund right now? ›| Mutual Fund | Assets | Expense ratio |
|---|---|---|
| Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) | $5.4 billion | 0.10% |
| PIMCO Total Return (PTTAX) | $56 billion | 0.8% |
| The Hartford Short Duration Fund (HSDIX) | $1.9 billion | 0.49% |
| T. Rowe Price Capital Appreciation Fund (PRWCX) | $49 billion | 0.72% |
- Reliance Large Cap.
- ICICI Prudential Bluechip Equity Fund.
- ICICI Prudential Bluechip Equity Fund.
- Tata Equity P/E Fund.
- HDFC Small Cap Fund.
- Aditya Birla Sun Life Tax Relief 96.
- ICICI Prudential Equity & Debt Fund.
- Mirae Asset India Equity Fund.
📈 Long-Term Bonds
These are securities that usually come with a 20 to 30-year term. They can be in the form of corporate bonds, government bonds, and even international bonds. Long-term bonds are considered one of the best investments in the Philippines because of the potentially high-interest yields.
Equity funds are the best mutual funds to invest in for the long term. Opt for a growth mutual fund option to easily reach your long-term goals, as the fund's returns will compound over time.
What are the top 3 mutual funds? ›- #1. Fidelity® Growth & Income Portfolio FGRIX.
- #2. Fidelity® New Millennium Fund® FMILX.
- #3. Fidelity® Large Cap Stock Fund FLCSX.
| Ticker | Name | 5-year return |
|---|---|---|
| STSEX | BlackRock Exchange BlackRock | 13.14% |
| SRFMX | Sarofim Equity | 12.69% |
| SSAQX | State Street US Core Equity Fund | 12.12% |
| FGRTX | Fidelity® Mega Cap Stock | 12.06% |
Money market mutual funds
These mutual funds own safe securities such as cash and very short-term debt, making them generally safer than either stock- or bond-based mutual funds but also lower-return.
| Name | 5 year return (%) | Exit Load (%) |
|---|---|---|
| Canara Robeco BlueChip Equity Fund Direct-Growth | 24.91 | 1.0 |
| Aditya Birla Sun Life Digital India Fund | 18.36 | 1.0 |
| SBI Small Cap Fund Direct-Growth | 14.62 | 1.0 |
| Parag Parikh Flexi-Cap Fund Direct-Growth | 16.48 | 2.0 |
What if I invest $10,000 in mutual funds for 5 years? ›
If a SIP of Rs 10,000 had been started in it 5 years ago, today this amount would have been Rs 12.72 lakh. The fund has given an annual return of 30.62 percent in these five years.
Which mutual fund gives highest return in 1 year? ›| S.No. | Fund Name |
|---|---|
| 1. | Franklin India Short-Term Income Plan – Direct Plan-Growth |
| 2. | Edelweiss Banking and PSU Debt Fund – Direct Plan-Growth |
| 3. | Nippon India Short-Term Fund – Growth |
| 4. | IDFC Bond Fund – Short-Term Plan Regular Plan-Growth |
The purpose of investing in mutual funds is to earn higher returns than what traditional investment options offer. These returns are the result of more extensive market exposure and professional management of the mutual funds. Mutual funds are also more tax-efficient than traditional investments.
Where to invest in Philippines 2023? ›Apart from the foregoing strong contenders for FDIs into the Philippines in the coming years, other promising areas of investment are real estate, healthcare, manufacturing, financial services and tourism, among others. This article was published in Feb 2023 issue of IHC Magazine.
Who has the highest deposit interest rate in the Philippines? ›- Bank Deposit Interest Rate in Philippines remained unchanged at 5.75 % in May 2023. The maximum rate was 4.25 % and minimum was 1.5 %.
- Data published Monthly by World Bank.
In 2022, the leading foreign investor in the Philippines was Singapore, with investments amounting to approximately 131 billion Philippine pesos.
What are the 4 types of mutual funds in the Philippines? ›In the Philippines, mutual funds can be categorized into four basic types: stock/equity, balanced, bond, and money market funds. What makes mutual funds suitable to young professionals or investment newbies is that you don't have to be a millionaire to start investing.
What is the average interest rate of mutual funds in the Philippines? ›Mutual fund assets, percent of GDP
The average value for the Philippines during that period was 1.19 percent with a minimum of 0.13 percent in 2000 and a maximum of 2.07 percent in 2020. The latest value from 2020 is 2.07 percent. For comparison, the world average in 2020 based on 71 countries is 182.14 percent.
Fund Facts
0.50% p.a. Every trading day at 4:00 p.m.
As of February 2023, the LandBank bond fund of the LandBank of the Philippines was the best bond fund in the Philippines with approximately 2.78 percent ROI in one year. This was followed by the Manulife Asia Dynamic Bond Feeder Fund of Manulife Investment Management with an ROI of 1.76 percent in a year.