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Sunday, June 5, 2011

Types of Mutual Fund in the Philippines


Mutual Fund in the Philippines

What is a Mutual Fund?

A mutual fund is a collectively pools money from individual and corporate investors. These funds are managed by a professional fund manager who invests the  pools money in stocks, bonds, money market instruments, and/or other securities.

The mutual fund in the Philippines earn in two ways: from the capital gain (increase in value) and dividend. Whatever charges and expenses, are passed on to the shareholders such as management fee and taxes. The value of a share of mutual fund in the Philippines, called the Net Asset Value (NAV), is calculated daily based on the fund’s total value divided by the total number of outstanding shares.

Types of Mutual Fund in the Philippines

There are mainly four types of mutual fund in the Philippines: stock (or equity), bond, balanced, and money market.

Stock or equity fund invest in shares of stock of Philippines corporations listed in the Philippines Stock Exchange (PSE). Equity funds offer the highest possibility of growth among all mutual fund types in the Philippines, but they also have a corresponding high amount of risk.

Bond fund invest primarily in fixed-income securities such as bonds or treasury notes issued by the Philippines government and commercial papers issued by reputable Philippines companies. Because these bonds are normally guaranteed, the possibility of loss is very low. Investing in bond funds provide capital preservation while maintaining conservative asset growth.

Balanced fund is a mixture of equity and bond funds. The high potential growth of equity investments is tempered by the  conservative growth of fixed-income securities. Obviously, the return of a balanced fund is normally somewhere between the return of an equity fund and a bond fund.

Money market fund are similar to bond funds because they also invest in fixed-income securities and the growth of the fund is conservative. The main difference lies, however, in the term of money market fund investments, which is usually short-term such as one year or less.

How to choose a good mutual fund in the Philippines?

Choosing which mutual fund in the Philippines to invest in ultimately depends on the investor’s growth goal and risk tolerance. If the purpose is capital growth, equity funds are the way to go. 

Bond funds are chosen, on the other hand, if the investor prefers capital preservation over risky capital growth. For those who want medium risk and medium growth, balanced funds are the best option. Money market funds are for those who wish to earn a conservative amount of return in the short-term.

List of Mutual Fund in the Philippines

You’ve seen what a mutual fund is and what types exist in the Philippines. Here now is a list of companies offer a mutual fund in the Philippines who are members of the Investment Company Association of the Philippines. 

As of June 6, 2011

Source: Investment Company Association of the Philippines 

Stock Fund
  • ATR- Kim Eng Equity Opportunity Fund – www.mutualfund.com.ph
  • First Metro Save and Learn Equity Fund – www.fami.com.ph
  • Philam Strategic Growth Fund, Inc. – www.philamfunds.com
  • Philequity Fund, Inc. – www.philequity.net
  • Philequity PSE Index Fund Inc.

  • Sun Life Prosperity Phil. Equity Fund, Inc. – www.sunlifefunds.com
  • United Fund, Inc.
  • Philippine Stock Index Fund Corp.
Balanced Fund
  • ALFM Growth Fund, Inc. - www.alfm.com.ph
  • Bahay Pari Solidaritas Fund, Inc
  • Cocolife Dollar Fund Builder, Inc
  • First Metro Save and Learn Balanced Fund Inc.
  • GSIS Kinabukasan Fund
  • MFCP Kabuhayan Fund – www.mutualfund.com.ph
  • NCM Mutual Fund of the Philippines, Inc - www.philamfunds.com.ph
  • Optima Balanced Fund, Inc.
  • PAMI Asia Balance Fund, Inc - www.philamfunds.com.ph
  • Philam Fund, Inc. – www.philamfunds.com
  • Sun Life Prosperity Balanced Fund, Inc. – www.sunlifefunds.com
  • Sun Life Prosperity Dollar Advantage Fund, Inc. – www.sunlifefunds.com

Bond Fund
  • ALFM Dollar Bond Fund,Inc. - www.alfm.com.ph
  • ALFM Euro Bond Fund, Inc. - www.alfm.com.ph
  • ALFM Peso Bond Fund, Inc. - www.alfm.com.ph
  • ATR KimEng Total Return Bond Fund Inc
  • Cocolife Fixed Income Fund, Inc. - www.cocolife.com
  • Ekklesia Mutual Fund Inc.
  • First Metro Save and Learn Fixed Income Fund,Inc - www.fami.com.ph
  • Grepalife Dollar Bond Fund (USD$) – www.grepafunds.com
  • Grepalife Fixed Income Fund, Inc. – www.grepafunds.com
  • MAA Privilege Dollar Fixed Income Fund, Inc. – www.maa.com.ph
  • MAA Privilege Euro Fixed Income Fund, Inc. – www.mutualife.com.ph
  • PAMI Global Bond Fund, Inc - www.philamfunds.com.ph
  • Philam Bond Fund, Inc. – www.philamfunds.com
  • Philam Dollar Bond Fund, Inc. – www.philamfunds.com
  • Philam Managed Income Fund
  • Philequity Dollar Income Fund Inc. - www.philequity.net
  • Philequity Peso Bond Fund - www.philequity.net
  • Prudential Fixed Income Fund Inc. - www.prudentiallife.com
  • Sun Life Prosperity Bond Fund, Inc. – www.sunlifefunds.com
  • Sun Life Prosperity Dollar Abundance fund – www.sunlifefunds.com
  • Sun Life Prosperity GS Fund – www.sunlifefunds.com
Money Market Fund
  • ALFM Money Market Fund, Inc
  • ATR Kimeng Money Market Fund, Inc.
  • First Metro Save and Learn Money Market Fund, Inc - www.fami.com.ph
  • Philam Manged Income Fund, Inc - wwwphilamfunds.com.ph
  • Sun Life Prosperity Money Market Fund, Inc. – www.sunlifefunds.com



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