The 5 Best Mutual Funds in the Philippines to Invest In
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The 5 Best Mutual Funds in the Philippines to Invest In

How We Picked The Mutual Funds

Performance History – Even if a fund’s history will not indicate its future performance, we recommend funds that closely stick to its benchmark. This remarkable feat shows the differences in investing strategies through different market conditions. 
Fees – Most mutual funds ask for fees for the different services needed to manage your money. Hence, we went for funds able to build on your investment without deducting too much fees. 
Accessibility – Your funds must be accessible to you whenever you want. We chose mutual funds you can access from any device or apps without compromising security.
Customer service – Reaching your financial goals with mutual funds will take years of commitment. We chose funds that provide you security in and assurance about your investment through excellent customer service.

1. Philequity Dividend Yield Fund, Inc.

Philequity Dividend Yield Fund, Inc. Homepage

Type of Fund: Equity

Minimum Initial Investment: Php 1000

Minimum Additional Investment: Php 500

Exit Fee: 1% (if withdrawn within 90 days of opening)

Management Fees: 1.5% per annum

Recommended Time Frame: 5+ years

Risk profile: Aggressive, High Risk

Performance History5/5
Fees5/5
Accessibility3/5
Customer service3/5

Pros

  • Awards from multiple financial events
  • Investment in dividend-paying companies
  • Stock market exposure
  • Cheap management fees compared to other equity mutual funds
  • Cheap minimum additional investment

Cons

  • Sensitive to the overall economic state
  • Subpar customer service 
  • High risk

Philequity Management Company, Inc. has been an established investment management company in the Philippines. Their reputation dates back to 1994, and they continue to improve the financial life of many Filipinos to this day.

Along with the funds within Philequity, The Philippine Dividend Yield Fund has bagged multiple awards. With a 10-year existence in the Philippine market, it continues to emerge as one of the top performing equity mutual funds annually.

We recommend the Philequity Dividend Yield Fund because of its wise selection of dividend-paying companies to be included in its assets.

Dividend-paying companies are the ones most likely experiencing growth and profits. Hence, the fund continually grows with the growth of these companies. 

The majority of the companies included in the asset of the Philequity Dividend Yield Fund was in the services and industrial industries. Those companies are listed in the Philippine Stock Market Exchange.

We recommend this for experienced investors who yearn for local stock market exposure. You may be an investor who wants to try investing in a longer time horizon for more returns. 

Its cheap minimum additional investment makes it a win for young professionals or investors building investment habits. 

Despite the strong performance of the industries they invest in, the companies under those industries are sensitive to the economic conditions of the Philippines. 

This may seem like a no-brainer for many, but it must be said: you may experience higher volatility with this fund compared to others. So, if you are more risk-averse than the typical investor, we advise you to pause before you commit.

We found the customer service for this fund (along with other Philequity funds) to be subpar. We think that the lack of electronic accessibility (e.g., eforms) and social media presence may bar incoming customers.

2. ATRAM Alpha Opportunity Fund, Inc.

ATRAM Alpha Opportunity Fund, Inc. Homepage

Type of Fund: Equity

Minimum Initial Investment: Php 1000

Minimum Additional Investment: Php 1000

Exit Fee: 1% (if withdrawn within 90 days of opening)

Management Fees: 2.0% per annum

Recommended Time Frame: 5+ years

Risk profile: Aggressive, High Risk

Performance History5/5
Fees4/5
Accessibility5/5
Customer service5/5

Pros

  • Great alternative equity fund for non-PSE investors
  • Follows consumer trends
  • Accessible in Seedbox Philippines

Cons

  • Does not follow the Philippine Stock Market Exchange index (PSEi)
  • High management fees

If you are interested in a unique fund investing in equity, the ATRAM Alpha Opportunity Fund, Inc. should entice you. 

Their approach differs from other equity funds because they invest in companies outside the PSE. Instead of investing in huge, established companies (more commonly referred to as blue chip companies), this fund invests in small to midsize companies. 

Why did we think of this as your alternative? We think it would benefit you to invest in this fund because growth does not only exist in the PSE. 

In fact, many can argue companies outside the PSE listing can potentially experience larger growth. This is because smaller businesses are still in their volatile stages, which can expose you to its best growth potential. 

If the company were to experience failure or negatives, ATRAM Alpha Opportunity Fund, Inc. can immediately move their investments to other small businesses. 

Better yet, based on their fund allocation, they invest more on “consumer” equities. This implies them following consumer trends to easily adjust their investments depending on market demand. 

If you are already interested in investing in this fund, consider doing it through Seedbox Philippines. You may already be holding other investments in the platform because they offer various mutual funds.

We suggest this method because the minimum additional investment drops to PHP 500 (from Php 1000), even with the same fees. 

The glaring fact which can make you hesitant to invest could be ATRAM’s high management fees. We think that 2% management fee per annum may be too high, especially if you would not accumulate high gross returns in the year. 

Lastly, if you put more confidence in the PSE companies, then this might not be the fund for you. We recommend you follow other equity mutual funds closely following the PSE companies or performance. 

3. Sun Life Prosperity Dynamic Fund, Inc.

Sun Life Prosperity Dynamic Fund, Inc. Homepage

Type of Fund: Balanced

Minimum Initial Investment: Php 1000

Minimum Additional Investment: Php 1000

Exit Fee: 1% (early redemption)

Management Fees: 2.0% per annum

Recommended Time Frame: 5+ years

Risk profile: Moderate, Medium Risk

Performance History4/5
Fees4/5
Accessibility5/5
Customer service5/5

Pros

  • Balanced fund
  • Portfolio diversification
  • Perfect for attempting increased risk profile 

Cons

  • High management fees 
  • Not optimized for long-term investment

The Sun Life Prosperity Dynamic Fund, Inc. offers you a balanced fund to prevent too much risk, while staying alert of emerging opportunities. 

We recommend this fund for investors interested in moving their risk profile from convervative (low-risk) to moderate (medium risk). 

What makes this perfect for your transition is their fund allocation, or allocation of investments. 

If you are hesitating to invest between the different types of investment vehicles (e.g., bonds, equities), this might be the best fit for you. We suggest this for you if you do not want to spend too much time researching how to balance your fund. 

Since this fund is balanced, it provides you with portfolio diversification. It invests in equities, stocks, government bonds, money markets, and bank time deposits. 

Rather than investing into different companies and investing vehicles yourself, investing in this fund alone opens you to various investment choices. 

The disadvantages of this fund lies in its high management fees and time horizon. We deem 2% management fees as expensive, as it can chip away large amounts of your annual gross returns.

Aside from its management fees, staying with this fund for a long time horizon (5+ years) may put you in a disadvantageous position. 

Generally, equity funds are better for a long time horizon because of higher returns over time. We recommend you check your planned time horizon to know if this fund is best for you. 

4. Soldivo Bond Fund, Inc.

Soldivo Bond Fund, Inc. Homepage

Type of Fund: Bond

Minimum Initial Investment: Php 1000

Minimum Additional Investment: Php 500

Exit Fee: 1.12% (if redeemed in less than 6 months of initial deposit)

Management Fees: 1.5% per annum, 0.56%-3.36% (Entry fee range)

Recommended Time Frame: 1-3 years

Risk profile: Conservative, Low Risk

Performance History5/5
Fees3/5
Accessibility5/5
Customer service4/5

Pros

  • Top-performing bond fund
  • Low-risk
  • Cheap minimum additional investment

Cons

  • Long holding period
  • Charges entry fee

The Soldivo Bond Fund is the perfect investing vehicle for you if you are a conservative (low risk) investor. This can also preserve your capital (savings) when you still want them to grow without the risk of high losses. 

The Soldivo Bond Fund is also a top-performing bond fund based on the intermediate and medium term category. This performance is reflected in different prominent financial institutions (Bloomberg and Philippine Investment Fund Association).

The fund excels in distributing its bond across different financial sectors depending on which is more secure. 

Switching between corporate and government bonds makes them a secure short-term investment. Bonds are usually a safer alternative investment allocation than stocks as it aims for financial security than profit. 

The good news is that you do not need to concern yourself with these financial jargons when you invest in the fund. But we’re sharing this with you in case you are a conservative investor who is more concerned about financial security than profit or returns.

We suggest you think twice about investing funds you may withdraw within the next 6 months. The holding period for this fund (6 months) is longer than other funds (3 months).

Planning to withdraw within the holding period only deducts your money. A 1.12% deduction incurs on your investment. 

You will also be required to pay an entry fee when you start investing with this fund. Other funds do not have this since they already have a holding period. 

If you only plan to keep your money in the fund within less than a year and a half, you might have paid more fees than make returns. We suggest you stick to a 3-year time horizon to even out the fees and returns better. 

5. Sun Life Prosperity Peso Starter Fund

Sun Life Prosperity Peso Starter Fund Homepage

Type of Fund: Money Market

Minimum Initial Investment: Php 100

Minimum Additional Investment: Php 100

Exit Fee: 0.25% (early redemption)

Management Fees: 0.25% (per annum)

Recommended Time Frame: Less than a year or 1-3 years

Risk profile: Conservative, Low Risk

Performance History4/5
Fees5/5
Accessibility5/5
Customer service5/5

Pros

  • Low management fees
  • Low minimum initial deposit
  • Low minimum additional investment
  • Alternative to savings account

Cons

  • High interest rate banks may be a better option
  • Low returns 

If you are a beginner in investing, the Sun Life Prosperity Peso Starter Fund (formerly known as the Sun Life Prosperity Money Market Fund) may be the best choice for you. 

For as low as Php 100, you can start your investment journey through this fund. We recommend this if you want to gain investing experience. 

This fund is perfect for building your investing habits because it only requires Php 100 as a minimum additional investment. 

If you plan to invest in this fund, we suggest you focus on building a constant habit of depositing money to this fund in fixed intervals (monthly, quarterly, or yearly). 

You can also challenge yourself to invest a consistent amount to practice how it feels to invest in riskier investments. Attempting consistent investment in volatile funds would be challenging, so this is a great way to put some practice in! 

Although an investing vehicle, it would be a stretch to put all of your savings here and expect it to grow. After all, this fund is advertised to investors with a very short time horizon (less than a year). 

We recommend you explore high interest banks if you do not plan to use this fund as practice for riskier investments. 

There are banks that offer guaranteed returns for keeping your money with them. You will be better off with them since banks are more liquid (you can easily withdraw money) and insured by the Philippine Deposit Insurance Corporation (PDIC).

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