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Best Mutual Funds in the Philippines – May 2017 Update

May 29, 2017

Have you considered investing in any of the best mutual funds in the Philippines this 2017? If yes, then this post may help you decide the best mutual fund in the Philippines to invest with.

Finding out the best mutual fund in the Philippines  is hard. To start with, the top performing mutual fund change every year. Also, just like any other investment, the risks are inevitable.

I’ve been investing in an equity mutual fund for three years now. And my return of investment is still below 10% at the moment. But since I am reserving my mutual fund for retirement I don’t really care that much. Besides the earning I get is better than parking my money on a usual savings account.

Investing in the best mutual funds in the Philippines will not guarantee you great returns in a short span of time. You need to choose your fund provider well. As always, you must invest long-term to see good results. Let your money earn compound interest over time. And retire rich.

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What is mutual fund?




Mutual fund is a kind of investment in the Philippines wherein your investments are pooled together with the others, professionally managed and invested in specific types of securities.

Visualize it this way:

You invest in a specific type of mutual fund. Your money as well as the other investors are pooled together by the mutual fund company.

Your mutual fund company will act as the fund manager who the money in stocks, mutual funds and other equities.

To put simply, investing in mutual fund is like indirect investment in the stock market. It works like a normal savings account where you can top up your investment for as low as 1k but the ROI is way higher since it is invested in stocks. 

READ | I’m Finally Investing in Stocks | SavingsPinay

Why you Should Invest in Mutual Fund?


  1. Low Initial Investment– Starting a mutual fund account will only cost 5,000pesos which is a very fair amount whether you are working in a minimum wage or above minimum. All you have to do is start saving that said initial investment and for additional investment you can just give as low as 1,000 pesos a month!!!
  2. Diversification– When you open your mutual fund account, all the money you invest will be diversified to different corporations intelligently picked by experts. You can read more about diversification in The 10 Most Important Lessons to Learn in Personal Finance
  3. Convenience and Cost Efficiency– In mutual fund you are  free of stress in buying or selling or any other key terms and what about in the stock market. The fund manager/company where you opened your account will do everything for you. All you have to do is give additional investment every month. This will save you time, effort and additional money for transportation too.
  4. Principle of Compounding– If you are starting your researches about financial management then you have already heard of the term compounding. Compounding is the best friend of your investment. The more time your money is in the stock market the higher it will gain interest. Even if you stop investing after five years as long as your money is the mutual fund account it will still gain interest and will still make you a millionaire. This principle is present in every mutual fund accounts.
  5. No more Tax– Now this is the true reason why mutual fund is advantageous. There is no tax applicable for this one. All your investment will be with you without any tax deduction. What you see in your paper asset will be the same when you put it to cash.
  6. Regulated by SEC– It is actually a good thing to have a back up in every investment that you make. Fortunately, investing in mutual fund is regulated by Security and Exchange Commission so you will have no worries that your investment will be put to waste. Just be sure to invest in true and regulated mutual fund firms.
  7. Liquid Statement– Liquidity is easier in mutual fund because the company will really let you see what is happening to your investment. The breakdown of everything is present that gives you an edge over other investments. There is also easy access to information in mutual fund because they are just a call or an email away and they send information to your email address real time.

READ | 13 Things I Do To Improve My Finances

What are the Different Types of Mutual Funds?

The best mutual funds in the Philippines are categorized into four types:

  1. Equity Funds
  2. Bond Funds
  3. Money Market Funds
  4. Balanced Funds

Just like the latest reader question I answered, the type of mutual fund mentioned above are further characterized based on Composition (where it invests), Horizon (how long you should invest to see the ROI), Objection (why are you investing) and Risk Type (what type of investor are you). The table below will help you decide which type of Best Mutual Funds in the Philippines is right for you.

best-mutual-fund-Philippines

Is Mutual Fund for You?




To simply know whether a mutual fund is the right investment vehicle for you. Ponder upon the following:

It is for you if you have no trust issues

If you have issues entrusting your hard earned money to others then a mutual fund might not satisfy your investment cravings. Mutual Fund works like a savings account that you need to fund. Then a professional fund manager will put your money in the market and make it earn for you.

It is for you if you are for long-term investment

Mutual Fund doesn’t make you an instant millionaire. You need to wait for your money to accumulate wealth in a slow but steady manner. For example, a capital of 25,000pesos invested in a Money Market Fund can be 2-3 million in 20-25 years from now. (This depends on what type of mutual fund you invested). If you are willing to wait then mutual fund is for you.

It is for you if you are a beginner

Mutual Funds are one of the easiest way to own shares/stock. You won’t be bombarded with hard financial terms. You don’t need to worry deciding what stocks to buy or to sell because a trusted fund manager will do it for you.

[SIDE STORY. I invested in an equity mutual fund at 19 and started investing in direct stock market at 22 (this year) So far both investment vehicles are performing good. You can read my April 2017 Recap and Extra Income Report while Working Full-Time for the updates]

Now that I’ve covered all the basics about investing in mutual fund this the list of the best mutual funds in the Philippines 2017 will be update from time to time to give you a definitive comparison.

Please take note that the Net Asset Value Per Share (NAVPS) used in the following table is as of May 25, 2017.

Best Mutual Fund in the Philippines 2017 – Equity Funds

Name of Mutual Fund
Year-To-Date ROI 1-Year ROI
3-Year ROI
5-Year ROI
ALFM Growth Fund13.63%6.36%2.61%5.47%
ATRAM Alpha Opportunity Fund17.72%24.64%4.29%Not Available
ATRAM Philippine Equity Opportunity Fund11.63%7.65%1.43%6.70%
First Metro Save and Learn Equity Fund9.73%0.86%0.83%5.05%
One Wealthy Nation Fund
6.69%-3.81%-1.67%Not Available
PAMI Equity Index Fund14.47%4.99% Not Available
Not Available
Philam Strategic Growth Fund11.25%2.73%1.27%3.51%
Philequity Dividend Yield Fund11.80%5.72%5.07%Not Available
Philequity Fund12.79%6.46%3.62%9.11%
Philequity PSE Index Fund15.05%6.80%4.54%9.85%
Philippine Stock Index Fund14.84%5.97%4.47%9.90%
Soldivo Strategic Growth Fund 11.52%2.18%Not AvailableNot Available
Sun Life Prosperity Philippine Equity Fund12.45%5.10%2.72%6.72%
Sun Life Prosperity Philippine Stock Index Fund14.69%6.15%Not AvailableNot Available
United Fund13.04%7.58%2.78%4.00%

Best Mutual Fund in the Philippines 2017 – Balanced Funds

Name of Mutual FundYear-To-Date ROI1-Year ROI3-Year ROI5-Year ROI
ATRAM Dynamic Allocation Fund6.81%0.92%-1.53%4.66%
ATRAM Philippine Balanced Fund6.34%4.42%1.50%6.14%
Bahay Pari Solidaritas Fund7.32%3.85%2.96%5.01%
First Metro Save and Learn Balanced Fund7.13%-3.51%-3.11%1.79%
Grepalife Balanced FundNot AvailableNot AvailableNot AvailableNot Available
NCM Mutual Fund of the Philippines6.91%2.09%1.58%2.40%
PAMI Horizon Fund 6.31%0.99%0.78%1.58%
Philam Fund
6.50%0.88%0.78%2.07%
Sun Life Prosperity Balanced Fund7.98%1.53%1.41%4.86%
Sun Life Prosperity Dynamic Fund7.20%1.47%Not AvailableNot Available

Best Mutual Fund in the Philippines 2017 – Bond Funds

Name of Mutual FundYear-To-Date ROI1-Year ROI3-Year ROI5-Year ROI
ALFM Peso Bond Fund0.85%1.41%1.93%3.08%
ATRAM Corporate Bond Fund-1.50%-1.70%-0.90%2.92%
Cocolife Fixed Income Fund1.97%5.04%5.22%5.30%
Ekklesia Mutual Fund0.80%0.54%1.66%3.67%

First Metro Save and Learn Fixed Income Fund
0.70%-0.83%0.81%5.41%
Grepalife Fixed Income Fund 1.59%-1.07%-0.12%0.94%
Philam Bond Fund0.37%-1.12%0.87%3.66%
Philequity Peso Bond Fund0.03%0.25%0.16%4.13%
Soldivo Bond Fund0.49%-1.52%Not AvailableNot Available
Sun Life Prosperity Bond Fund-0.37%0.83%2.59%2.59%
Sun Life Prosperity GS Fund1.93%-1.08%0.42%2.01%

Best Mutual Fund in the Philippines 2017 – Money Market Funds

Name of Mutual FundYear-To-Date ROI1-Year ROI3-Year ROI5-Year ROI
ALFM Money Market Fund0.68%1.33%1.24%
1.63%
Philam Managed Fund0.07%-0.49%-0.09%0.31%
Sun Life Prosperity Money Market Fund0.84%1.94%1.32%0.73%

  1. Based on www.pifa.com.ph
  2. ROI means Return of Investment
  3. Not Available means the mutual fund hasn’t reached yet a YTD, 1-Year, 3-Year, 5-Year or 10-Year mark for an ROI to be computed.

How To Start Investing in Mutual Funds

Investing in mutual fund is easy. Depending on the financial company you will entrust your investments with, you will may need to do/to present the following:

 

1. Visit the website of your chosen mutual fund asset management company.

 

2. On their website you can easily find the page for Mutual Fund and/or Investment Products. 

 

3. Read the differences of each mutual fund offerings. Select your fund based on your personal investment objectives, investment horizon and your risk profile. READ: Reader Question | Where Should I Invest My Money?

 

4. Download the needed forms. This will depend on your chosen mutual fund asset management company.

 

  • Prospectus which is required and filed with the Securities and Exchange Commission. This document provides details about an investment offering as well as facts that an investor need to make an investment decision.
  • Account Opening Form which is required to be filled up for your information and other personal reference.
  • Investment Risk Profiling Questionnaire which will know your investment risk profiles and match you with the right companies to invest with. 

 

5. Prepare your IDs. 

 

6. Have you initial investment ready. Initial investment for a Mutual Fund account ranges from 5,000pesos to 10,000pesos. 

 

7. Submit all your requirements. You may need to go to the nearest office or send through mail. Sun Life for example  introduces an online facility that allows you to add, transfer and redeem shares anytime, anywhere. On FAMI I opened my account by submitting all the forms and requirements via courier.

 

8. Wait for your proof of purchase and/or statement of account to arrive. 

 

9. Fund you account. 

 

Final Words from SavingsPinay

This post will be updated from time to time to give you the latest return of investment status of the best mutual funds in the Philippines. Mutual Fund is a good investment vehicle for those who are just starting out in the stock market. It is a good option for your retirement fund so better invest as early as tomorrow or better yet, now. Mutual Funds are by far the most popular investment vehicles for newbies. It is affordable, it is convenient and it is regulated. But investing in mutual funds have bad and ugly sides too. It is important to note that every investment has loopholes just as how every investment contains risks. 

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Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph

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