Are you looking for a list of mutual funds in the Philippines? Luckily, I have one for you!
Without a doubt, there are many reasons why investing in mutual funds can be a good choice. And I know that investing in mutual funds also can be a little bit complicated especially for beginners. Since there are many mutual funds to choose from making it more tricky.
So, if you want to compare the different mutual funds being offered in the market, here is the list according to the investment house.
What Is A Mutual Fund
A mutual fund is an investment vehicle that pools together the money from different investors – individuals and corporations. Through a mutual fund, you are able to gain access to different high-yielding investments that usually need a lot of money to invest.
The pool of funds is managed by a professional fund manager. You can benefit from them through their investment management expertise and market knowledge. The fund managers see to it that the funds are optimally invested all the time. Taking calculated risks without sacrificing your potential returns as wells as making your losses as minimal as possible. This is why if you do not have enough knowledge about directly investing in the stock market, this can be an alternative option. You do not have to monitor the market by yourself since the fund managers will do it.
Here is an example on how mutual funds work.
Investor A has an initial investment of Php 20,000. Investor B has an investment of Php 100,000. And Investor C has an investment of Php 500,000. All of the money will be collected or pooled and will be invested in different investment vehicles that will depend on the parameters indicated in the fund’s prospectus.
The fund manager will decide what shares to buy and what to shares to sells depending on the market performance. The goal is to make a profit and to make losses as minimal as possible when the market is not performing well. The investment return will be then distributed to the investors.
When we say mutual fund, it is NOT A DEPOSIT PRODUCT. Meaning it has no guaranteed gains. Stock and bond prices go up and down daily depending on the market conditions. There are times that you are profitable. Some times also you will have losses. But bear in mind, that it is just a “paper loss” unless you withdraw your investment. Paper loss is an unrealized capital loss in an investment. It is the difference between the current price and the purchase price. However, in the long run, mutual funds outperformed the traditional time deposits.
Types Of Mutual Funds in the Philippines
There are four basic types of mutual funds in the Philippines:
- Equity (Stock) Fund. Invests primarily in a diversified portfolio of stocks and the most aggressive type. If you want the highest return of investment in the long-term, you can opt to invest in this type. However, the chance of losing money is also high. It is usually recommended for investors who have long-term financial goals – retirement funds, children’s education.
- Balanced Fund. It is a hybrid fund which means a mix of a stock fund, bond fund, or money market fund in a single portfolio. It is for investors who have a moderate risk appetite. Investors who do not want to be exposed to too much risk but want to have a decent return.
- Bond Fund. Invests in a diversified portfolio of fixed-income instruments, such as government securities, treasury bills, treasury notes, and commercial papers. A good way of beating inflation.
- Money Market Fund. This is the least risky among mutual funds but generates the lowest possible return. Invests in short-term debt securities such as time deposits, corporate bonds, money market placements, and cash assets.
List Of Mutual Fund Companies In The Philippines
About the ALFM Funds
The ALFM Mutual Funds are open-end investment companies registered with and regulated by, the Securities and Exchange Commission (SEC). As of December 2016, the aggregate Net Asset Value of the funds amounted to about P104 Billion. To date, the ALFM Mutual Funds have the largest market share in the mutual funds’ industry in the Philippines.
Official Website: https://www.alfmmutualfunds.com/
About the ATRAM Funds
The ATR Asset Management, ATRAM, or ATRAM Group, was formed in 2009 which is comprised of ATRAM MF and ATRAM – Trust. It manages portfolios that consist of mutual funds, trust assets, insurance portfolios, and real estate for proprietary and third-party clients. The ATRAM Group is backed by strong shareholders which include ATR Holdings Inc., A. Soriano Corporation, and the firms’ management teams.
The ATRAM Trust Corporation (ATRAM Trust) was granted a licensed to operate by Bangko Sentral ng Pilipinas (BSP) in October 2016. While the ATR Asset Management (ATRAM MF) was established in July 1995 as the Mutual Fund Management Co. of the Phils. (MFMCP) by the Clemente Fund Management Asia Ltd. The Maybank ATR Kim Eng Capital Partners, Inc. gained control of the company when it purchased an 83% stake in MFMCP from some of the original shareholders in 2003.
Official Website: https://www.atram.com.ph/
About the BIMI-PAMI Funds
For over 45 years, PAMI has been helping their clients to achieve their life goals. Their story began in 1971 when the Trinity Shares, Inc. was opened in the Philippines which is the first mutual fund company. Philam Asset Management, Inc. (PAMI) is also part of Philam Life, the country’s premier life insurance company, and backed by AIA Group, “The Real Life Company.” As of now, BPI Invesment Management, Inc. (BIMI) is the newly appointed fund manager of PAMI mutual Funds effective last January 29, 2020.
Official Website: https://www.philamfunds.com/
About the FAMI Funds
The First Metro Asset Management, Inc. was established in 2005 by First Metro Investment Corporation (FMIC) in partnership with the Catholic Educational Association of the Philippines (CEAP) and Marist Brothers Congregation Philippines, Inc. In the year 2014, FAMI hits Php 14 billion AUM.
Official Website: https://fami.com.ph/
About the MGB Funds
MGB Investment Management Inc. was established in 2017 as a corporation domiciled in the Philippines. It serves as the investment advisor to MBG Equity Investment Fund (Bloomberg: MBGEIFI:PM)
Official website: https://www.mbgfunds.com/
About the PEMI Funds
Philequity Management, Inc. (PEMI) was established in 1994 as an investment management company. The PEMI’s flagship Philequity Fund, Inc. has garnered multiple awards from local and foreign agencies for its consistent track record of outstanding returns.
Official Website: https://www.philequity.net/
About the SLAMCI Funds
Sun Life Financial Philippines offer a broad range of insurance, retirement, and investment products and services to meet the diverse needs of both individual and corporate clients around the world. It offers a diverse range of insurance, wealth, and asset management solutions to help every Filipino in their journey towards a brighter life.
As the country’s first and longest-standing life insurer, SLAMCI provides financial planning and guidance, Investment products for individuals, families, and companies, with exceptional client-servicing.
Official Website: https://www.sunlife.com.ph/
About the Soldivo Funds
Soldivo Funds was incorporated in October 2014 making it the youngest mutual fund company in the Philippines. Currently, it offers only two funds – Soldivo Strategic Growth Fund and the Soldivo Bond Fund. ATRAM took over the management of the Soldivo funds on February 1, 2019.
No Official Website. Soldivo funds are being offered by ATRAM and Rampver Financials.
In Summary
The list of mutual funds in the Philippines mentioned above may not be complete as well as the data since it may change over time depending on the companies. It is advisable to visit the official website offering the funds for more accurate and updated data. You can also check the fund members as wells as the daily NAVPS of the different mutual funds in the Philippine Investment Funds Association (PIFA).
In general, you can narrow down your choices which mutual funds should you choose by (1) identifying what type of fund, (2) consistently best performing, and (3) the fees involved. However, there are still many other factors you need to consider in choosing a mutual fund.
As a starting point, I recommend first reading the beginner’s guide for mutual funds in the Philippines. And if you want to know more about mutual funds, I suggest that you also read the FAQs as wells as the common misconceptions about mutual funds.