December 1, 2023

Compare Mutual Funds List Of Philippines Mutual Fund Companies – Peso Lab

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When I started investing many years ago the first question I had was, where can I invest? I knew I wanted to begin with mutual funds because a friend told me about them. However, I hadn’t had the chance to get to know the companies that offer them.

If you find yourself asking the same question, this is the article for you.

Types of mutual funds

Mutual funds can be grouped into investment objective. The investment objective describes what the fund is invested to, risks, and the profile of investors it is designed for. You may also want to know the bestperforming mutual funds in the Philippines in 2019.

In the Philippines, the types of funds available in the market are:

FUND ASSET RISK INVESTOR
Stock funds Stocks High Aggressive
Balanced funds Stocks and bonds Medium Between aggressive and conservative
Bond funds Bonds Low Conservative
Money market funds Fixed income Low Very conservative

The list below is from the official document released by the Securities and Exchange Commission.

Index funds

Index funds are stock funds that try to mirror the stock index. The stock index or Philippine Stock Exchange index is composed of the country’s 30 largest companies like Jollibee, Aboitiz, BPI, etc. These stocks are also called blue chip stocks because they’re established companies with long history and proven track record.

Related: How much can you earn from investing in index funds

INDEX FUND COMPANY
PAMI Equity Index Fund, Inc. PAMI
Philequity MSCI Philippine Index Fund, Inc Philequity
Philequity PSE Index Fund Inc. Philequity
Philippine Stock Index Fund Corp. ALFM Mutual Funds
Sun Life Prosperity Philippine Stock Index Fund, Inc. Sun Life

Equities funds

Equities funds are stock funds with different goals. Most of them are managed in a way to beat the returns of stock index or track a particular industry’s growth. Others are made up of stocks in a particular industry; the First Metro Philippine Consumer Fund on MSCI Philippine, Inc. for example invests in consumer and retail companies only.

EQUITIES FUND COMPANY
Atram Asiaplus Equity Fund,Inc. Atram
Atram Philippine Equity Opportunity Fund,Inc. Atram
Climbs Share Capital Equity Investment Fund CLIMBS
First Metro Philippine Consumer Fund on MSCI Philippine, Inc. FAMI
First Metro Save & Learn Asia Focus Equity Fund, Inc. (US$) FAMI
First Metro Save And Learn Equity Fund Inc. FAMI
MBG Equity Investment Fund, Inc. MBG
Philam Strategic Growth Fund, Inc. PAMI
Philequity Fund, Inc. Philequity
Philequity Dividend Yield Fund, Inc. Philequity
Philequity Strategic Growth Fund, Inc. Philequity
Soldivo Strategic Growth Fund, Inc. Rampver
Sun Life Of Canada Prosperity Philippine Equity Fund, Inc. Sun Life
Sun Life Prosperity World Voyager Fund,Inc. Sun Life
United Fund, Inc. Cocolife

Balanced funds

Balanced funds are designed for people who may be averse to the risks posed by stocks but seek more returns than what are offered by bonds. They are a mix of both, and so they may be suitable for less aggressive investors.

BALANCED FUNDS COMPANY
ALFM Growth Fund, Inc. ALFM Mutual Funds
Atram Alpha Opportunity Fund, Inc. Atram
Atram Dynamic Allocation Fund, Inc. Atram
Atram Philippine Balanced Fund,Inc. Atram
Bahay Pari Solidaritas Fund, Inc. ALFM Mutual Funds
Cocolife Dollar Fund Builder (US$) Cocolife
First Metro Save And Learn Balanced Fund, Inc. FAMI
Grepalife Balanced Fund Corporation Grepalife
NCM Mutual Fund, Inc. NCM
One Wealthy Nation Fund, Inc. FAMI
PAMI Asia Balanced Fund, Inc. (US$) PAMI
PAMI Horizon Fund, Inc. PAMI
Philam Fund, Inc. PAMI
Sun Life Of Canada Prosperity Balanced Fund, Inc. Sun Life
Sun Life Prosperity Dollar Advantage Fund, Inc. ($) Sun Life
Sun Life of Canada Prosperity Balanced Fund, Inc. Sun
Sun Life Prosperity Dollar Wellspring Fund, Inc. Sun Life
Sun Life Prosperity Dynamic Fund, Inc. Sun Life
Sun Life Prosperity Achiever Fund 2028, Inc. Sun Life
Sun Life Prosperity Achiever Fund 2038, Inc. Sun Life
Sun Life Prosperity Achiever Fund 2048, Inc. Sun Life

Bond funds

Bond funds are for conservative investors. They are made up of fixed income securities such as bonds that hold debts of the Philippine government and companies. They’re relatively safe because debts are generally paid up when they mature and interests are regularly paid on time.

BOND FUNDS COMPANY
ALFM Dollar Bond Fund, Inc. ALFM Mutual Funds
ALFM Euro Bond Fund, Inc. ALFM Mutual Funds
ALFM Peso Bond Fund, Inc. ALFM Mutual Funds
Atram Corporate Bond Fund, Inc. Atram
Atram Total Return Bond Fund, Inc. Atram
Cocolife Fixed Income Fund, Inc. Cocolife
Ekklesia Mutual Fund Inc. ALFM Mutual Funds
First Metro Save & Learn Dollar Bond Fund, Inc. FAMI
First Metro Save And Fixed Income Fund, Inc. FAMI
Grepalife Dollar Bond Fund Corp. Grepalife
Grepalife Fixed Income Fund Corporation Grepalife
PAMI Global Bond Fund, Inc. PAMI
Philam Bond Fund, Inc. PAMI
Philam Dollar Bond Fund, Inc. PAMI
Philequity Dollar Income Fund, Inc. PAMI
Philequity Peso Bond Fund, Inc. PAMI
Soldivo Bond Fund, Inc. Rampver
Sun Life of Canada Prosperity Bond Fund, Inc. Sun Life
Sun Life Prosperity Dollar Abundance Fund, Inc. Sun Life
Sun Life Prosperity GS Fund, Inc. Sun Life

Money market funds

The money market funds are invested in assets that include short-term treasury notes and bank debts. They are considered safe investments and offer modest returns. The money market is actually a marketplace where banks can quickly grant or secure loans from one another.

FUND NAME COMPANY
ALFM Money Market Fund, Inc. ALFM Mutual Funds
Philam Managed Income Fund, Inc. PAMI
Sun Life Prosperity Dollar Starter Fund, Inc. Sun Life
Sun Life Prosperity Money Market Fund, Inc. Sun Life
AIB Money Market Mutual Fund, Inc. AIB
First Metro Save and Learn Money Market Fund, Inc. FAMI

Exchange traded fund

The exchange traded fund (ETF) is a mutual fund that is traded on the Philippine Stock Exchange. You don’t buy it like the other funds on this list by going to a company. Instead, you buy shares from the stock exchange. In the country today, there’s only one ETF that exists.

Fees and charges of mutual funds in the Philippines

Mutual funds are great when you would want to invest your money and hope to enjoy potential gain. They are a great way to save particularly for financial goals that would take you some years to achieve.

However, you might also be interested to learn about the fees and charges. When you are getting started into mutual funds, you might forget that you are also paying the company for keeping your savings and optimizing your returns. These fees can actually eat into your expected profit.

In this article, you will learn about the fees that are usually charged to any account, understand their impact, and check how much each investment company charge. Similar funds are grouped together so that you can make fair comparisons. At the end, you will see a list of references to help you if you wish to research more.

Understanding mutual fund fees

Let’s revisit some of the details as discussed in beginner’s guide to mutual funds.

Initial investment

When you open a mutual fund, there is an initial investment that is required. It ranges between ₱50 and ₱5,000. This amount varies from one fund to another, so it pays to check ahead. Of course, you can go higher.

Minimum additional investment

After opening, you may want to add more. The minimum additional investment is between ₱50 and ₱1,000. It is actually a strategy called peso cost averaging to continue investing just a little each month. Some companies like ALFMFAMI and Philequity allow you to do so automatically where your bank account gets debited at a particular date every month.

Front-end fee

The front-end fee, also called sales load, is taken off from your investments every time you open or add. Some companies waive the fee. Others have a tiered policy; the higher you invest, the lesser the fee becomes or even none at all. So let’s say you put up ₱5,000 to a fund with a front-end fee of 2%. What actually gets invested is ₱4,900.

  • Initial investment: ₱5,000
  • Front-end/Sales load: 2%
  • Sales load amount: ₱5,000 x 2% = ₱100
  • Actual invested amount: ₱5,000 – ₱100 = ₱4,900

Management fee

The management fee is the portion of your investment that goes to pay for the operation of the fund and other expenses. Don’t worry, you really don’t have to pay this personally ever year. This fee is taken out from the fund and reflected in the value of the fund called NAVPS. The higher the management fee, the lower is the NAVPS.

NAVPS

Which brings us to the next item, NAVPS or net asset value per share. It is the worth of the fund derived by adding up all its assets minus debts, and then the result is divided by all shares. You get earnings from the fund when its NAVPS increases as its investments grew.

Ownership

Since the fund is also a company, you as an investor are a shareholder. The number of shares you get depends on the the actual invested amount. So let’s assume that the NAVPS of a fund is ₱2 per share. Following the example above,

  • Actual invested amount: ₱4,900
  • NAVPS: ₱2 per share
  • Number of shares: ₱4,900 ÷ ₱2 = 2,450 shares

Effects of mutual fund fees

Fees are collected to keep the operation of the fund, pay compensation for advisors, pay brokerage fees, and other such expenses. Of course, you would want to get a fund with lower fees as they can actually affect the amount that gets invested and the profit that you get when you redeem your shares.

For instance, the sales load lessens the amount that would be used to invest. In turn, you would need to wait for the fund to grow to a level that would match the sales load to break even. Moreover, the higher management fee there is, the lower the NAVPS becomes and the lower returns you get.

To better illustrate this point, imagine that you have a mutual fund with 1%, 3% or 5% front-end fee. The fund requires ₱10,000 initial investment, and then you decide to re-invest ₱1,000 consistently every month. If we assume that the it grows 10% annually, then here’s the comparison between no fees and with the fee.

YEAR DEPOSIT ZERO FEE 1% 3% 5%
1 22,000 23,670 23,434 22,960 22,487
2 34,000 38,767 38,380 37,604 36,829
3 46,000 55,440 54,886 53,777 52,668
4 58,000 73,853 73,114 71,637 70,160
5 70,000 94,187 93,246 91,362 89,478
10 130,000 232,489 230,165 225,515 220,865
15 190,000 459,697 455,100 445,906 436,712
20 250,000 832,972 824,642 807,983 791,323
25 310,000 1,446,237 1,431,775 1,402,850 1,373,926
30 370,000 2,453,819 2,429,281 2,380,205 2,331,128

As you can see from the table, the 2% fee charged every time that you put money can actually impact your return many years down the road. Think of the opportunity cost when we include the annual management fee into consideration.

Are fees really that baaad?

Actually, fees are what makes the ball rolling. Without them, there will be no investment companies that can sustain operation. Investors like you and me pay the fees in exchange for hiring somebody to do the analysis and trading of securities since maybe we don’t have the time, resources, or skills.

But why do others have higher fees? Companies can lower what they charge on passively managed investments such as index funds. Index funds simply follow the stock index (blue chips, the top 30 companies in the stock exchange). Others though require more work particularly those that strive to beat the returns of the blue chip stocks.

In saying that they are essential, it is also crucial to be able to smartly compare the fees of funds of the same type. The goal really is to keep fees, important as they are, to a minimum.

However, you may choose to go with the ones that have higher charges. It can be a strategy if you think that the fund, maybe because of the trust in the institutions that oversee it, can potentially give you superior returns to make up for them in the long run.

Fees of index funds

Index funds have the lowest management fees across all types of mutual funds because they are passively managed. This means that fund managers simply mirror the stock index, which is a basket of the top 30 companies.

They buy and sell stocks of companies in a way that reflects the composition of the index as often as the Securities and Exchange Commission reviews the index, and that leads to lower annual fee.

NAME INITIAL ADD SALES LOAD EXIT HOLD FEE
PAMI Equity Index Fund, Inc. 1,000 500 3.36% 1.12% 6months 1%
Philequity MSCI Philippine Index Fund, Inc. 1,000 500 5% 1% 90 days 3%
Philequity PSE Index Fund Inc. 1,000 500 3.5% 2% 1yr 1%
Philippine Stock Index Fund Corp. 5,000 1,000 1.5% 1% 3months 1%
Sun Life Prosperity Philippine Stock Index Fund, Inc. 1,000 1,000 2% 1% 6months 1%

Fees of equities funds

Equities funds have higher management fees compared with the index funds. Usually, they are actively managed. Fund managers have a certain goal to achieve such as may be exceeding the returns of the stock index. In the table below, you will see that some data are not available (indicated with a question mark).

Some thing worth noting is that Sun Life equities funds don’t have any exit fee or holding period. There are also two dollar-denominated funds in the table. Lastly, the Atram equities funds have the lowest initial investments of ₱50.

NAME INITIAL ADD SALES LOAD EXIT HOLD FEE
ALFM Growth Fund, Inc. 5,000 1,000 3.00% 1.00% 90 days 2%
ATRAM Alpha Opportunity Fund, Inc. 50 50 5.60% 1.12% 90 days 2%
ATRAM AsiaPlus Equity Fund, Inc. $150 $50 2.24% 1.25% 90 days 0.5%
ATRAM Philippine Equity Opportunity Fund, Inc. 50 50 5.60% 1.12% 90 days 2%
Climbs Share Capital Equity Investment Fund Corp. 500 1,000 2.00% ? ? ?
First Metro Consumer Fund on MSCI Phils. Inc. 5,000 1,000 2.00% 1.00% 6 months 1.750%
First Metro Save and Learn Equity Fund,Inc. 5,000 1,000 2.00% 1.00% 6 months 1.875%
MBG Equity Investment Fund, Inc. 100,000 10,000 5.00% 5.00% 1 year 2%
One Wealthy Nation Fund, Inc. 5,000 1,000 3.00% 1.00% 6 months 1.875%
Philam Strategic Growth Fund, Inc. 5,000 1,000 3.00% 1.00% 6 months 2%
Philequity Dividend Yield Fund, Inc. 1,000 500 5.00% 2.00% 90 days 3%
Philequity Fund, Inc. 1,000 500 5.00% 2.00% 90 days 1%
Soldivo Strategic Growth Fund, Inc. 5,000 1,000 3.36% 1.12% 6 months 2.25%
Sun Life Prosperity Philippine Equity Fund, Inc. 1,000 1,000 2.00% None None 2%
Sun Life Prosperity World Voyager Fund, Inc. $1,000 $200 2.00% None None 1.75%
United Fund, Inc. 1,000 500 2.00% 3.50% 1 year ?

Fees of balanced funds

A couple of things about balanced funds. Gretalife funds are going to terminate services before the end of this year. There are some that have undefined entries because although disclosed, the fee cannot be ascertained as a percentage of the assets under management. Those with question mark mean that there is no available data to base from.

NAME INITIAL ADD SALES LOAD EXIT HOLD FEE
ATRAM Dynamic Allocation Fund, Inc. 50 50 5% 1.12% 90 days 1.75%
ATRAM Philippine Balanced Fund, Inc. 50 50 5% 1.12% 90 days 1.75%
Cocolife Dollar Fund Builder, Inc. $1,000 $500 0.5% 1.5% 1 year ?
First Metro Save and Learn Balanced Fund Inc. 5,000 1,000 2% 1% 6 months 1.875%
Grepalife Balanced Fund Corporation 5,000 500 2% 2% 1 year 1.875%
NCM Mutual Fund of the Phils., Inc. 100,000 10,000 3.36% 1% 6 months 1.8%
PAMI Asia Balanced Fund, Inc. $200 $50 3.36% 1% 6 months 2%
PAMI Horizon Fund, Inc. 5,000 1,000 2.8% 1% 6 months 1.8%
Philam Fund, Inc. 1,000 500 3% 1% 6 months 2%
Solidaritas Fund, Inc. 5,000 1,000 1.5% 1% 6 months 2%
Sun Life of Canada Prosperity Balanced Fund, Inc. 1,000 1,000 2% None None 2%
Sun Life Prosperity Achiever Fund 2028, Inc. 1,000 1,000 None 5% 5 years undefined
Sun Life Prosperity Achiever Fund 2038, Inc. 1,000 1,000 None 5% 5 years undefined
Sun Life Prosperity Achiever Fund 2048, Inc. 1,000 1,000 None 5% 5 years undefined
Sun Life Prosperity Dollar Advantage Fund, Inc. $1,000 $200 2% None None 1.5%
Sun Life Prosperity Dollar Wellspring Fund, Inc. $1,000 $200 2% 1% 180 days 1.5%
Sun Life Prosperity Dynamic Fund, Inc. 1,000 1,000 2% 1% 30 days 2%

Fees of bond funds

The fees of bond funds are actually similar, if not lower than, with the others. Again, the Sun Life products do not have any exit fee or holding period, but you can check the terms and conditions that are available in their website. What’s is also worth noting is that there are a few funds in denomination other than the Philippine peso.

NAME INITIAL ADD SALES LOAD EXIT HOLD FEE
ALFM Dollar Bond Fund, Inc. $500 $100 5% 1% 6 months 1.25%
ALFM Euro Bond Fund, Inc. EUR 500 EUR 100 5% 1% 6 months 0.75%
ALFM Peso Bond Fund, Inc. 5,000 1,000 1.25% 1% 90 days 1%
ATRAM Corporate Bond Fund, Inc. 50 50 2.24% 5% 6 months 1.2%
ATRAM Total Return Dollar Bond Fund, Inc. $150 $50 5% 5% 2 years 1%
Cocolife Fixed Income Fund, Inc. 1,000 500 2% 3.5% 1 year ?
Ekklesia Mutual Fund Inc. 5,000 1,000 2% 1% 6 months 0.875%
First Metro Save and Learn Dollar Bond Fund, Inc. $1,000 $100 1% 1% 6 months 1.75%
First Metro Save and Learn Fixed Income Fund, Inc. 5,000 1,000 2% 1% 6 months 1.75%
Grepalife Dollar Bond Fund Corp. $100 $100 2% 2% 1 year ?
Grepalife Fixed Income Fund Corp. 5,000 $1,000 2% 2% 1 year ?
PAMI Global Bond Fund, Inc $5,000 $1,000 3% 1% 6 months 2%
Philam Bond Fund, Inc. 1,000 500 3% 1% 6 months 1.5%
Philam Dollar Bond Fund, Inc. $2,000 $100 3% 1% 6 months 1.5%
Philequity Dollar Income Fund Inc. $2,000 $1,000 1% 1% 2 years 1.5%
Philequity Peso Bond Fund, Inc. 10,000 5,000 1% 1% 2 years 1.5%
Soldivo Bond Fund, Inc. 5,000 1,000 3.36% 1.12% 6 months 1.5%
Sun Life of Canada Prosperity Bond Fund, Inc. 1,000 1,000 2% None None 1%
Sun Life Prosperity Dollar Abundance Fund, Inc. $1,000 $200 2% None None 1.5%
Sun Life Prosperity GS Fund, Inc. 1,000 1,000 2% None None 1%

Fees of money market funds

There seems to be no available data for one of the funds in the table below. It is also important to take note of is that there seems to be less sales load in this bunch, and that the holding period is shorter compared with those found in other types of mutual funds.

NAME INITIAL ADD SALES LOAD EXIT HOLD FEE
ALFM Money Market Fund, Inc. 5,000 1,000 5% 1% 7 days 0.5%
First Metro Save and Learn Money Market Fund, Inc. 5,000 1,000 None 1% 7 days 0.5%
Philam Managed Income Fund, Inc. ? ? ? ? ? ?
Sun Life Prosperity Dollar Starter Fund, Inc. $500 $100 None 0.25% 7 days 0.25%
Sun Life Prosperity Money Market Fund, Inc. 100 100 None 0.25% 7 days 0.25%

Conclusion

It took quite a while to complete the tables that you see here in this article. The goal is to really help you make the best decision when investing in mutual funds. Because fees can actually impact on how much you’re going to expect to receive, they must be part of your consideration.

Alphabetical list

FUND NAME TYPE COMPANY
ALFM Dollar Bond Fund, Inc. Bond ALFM Mutual Funds
ALFM Euro Bond Fund, Inc. Bond ALFM Mutual Funds
ALFM Growth Fund, Inc. Balanced ALFM Mutual Funds
ALFM Money Market Fund, Inc. Money Market ALFM Mutual Funds
ALFM Peso Bond Fund, Inc. Bond ALFM Mutual Funds
Atram Alpha Opportunity Fund, Inc. Balanced Atram
Atram Asiaplus Equity Fund,Inc. Equities Atram
Atram Corporate Bond Fund, Inc. Bond Atram
Atram Dynamic Allocation Fund, Inc. Balanced Atram
Atram Philippine Balanced Fund, Inc. Balanced Atran
Atram Philippine Equity Opportunity Fund, Inc. Equities Atram
Atram Total Return Bond Fund, Inc. Bond Atram
Bahay Pari Solidaritas Fund, Inc. Balanced BPI Investments
Climbs Share Capital Equity Investment Fund Equities CLIMBS
Cocolife Dollar Fund Builder (US$) Balanced Cocolife
Cocolife Fixed Income Fund, Inc. Bond Cocolife
Ekklesia Mutual Fund Inc. Bond BPI Investments
First Metro Philippine Consumer Fund on MSCI Philippine, Inc. Equities FAMI
First Metro Philippine Equity Exchange Traded Fund, Inc. ETF First Metro
First Metro Save & Learn Asia Focus Equity Fund, Inc. (US$) Equities FAMI
First Metro Save & Learn Dollar Bond Fund, Inc. Bond FAMI
First Metro Save And Fixed Income Fund, Inc. Bond FAMI
First Metro Save And Learn Balanced Fund, Inc. Balanced FAMI
First Metro Save And Learn Equity Fund Inc. Equities FAMI
First Metro Save and Learn Money Market Fund, Inc Money Market FAMI
Grepalife Balanced Fund Corporation Balanced Grepalife
Grepalife Dollar Bond Fund Corp. Bond Grepalife
Grepalife Fixed Income Fund Corporation Bond Greplalife
MBG Equity Investment Fund, Inc. Dquities Fund MBG
NCM Mutual Fund, Inc. Balanced NCM
One Wealthy Nation Fund, Inc. Balanced FAMI
PAMI Asia Balanced Fund, Inc. (US$) Balanced PAMI
PAMI Equity Index Fund, Inc. Index PAMI
PAMI Global Bond Fund, Inc. Bond PAMI
PAMI Horizon Fund, Inc. Balanced PAMI
Philam Bond Fund, Inc. Bond PAMI
Philam Dollar Bond Fund, Inc. Bond PAMI
Philam Fund, Inc. Balanced PAMI
Philam Managed Income Fund, Inc. Money Market PAMI
Philam Strategic Growth Fund, Inc. Equities PAMI
Philequity Dividend Yield Fund, Inc. Dividend Philequity
Philequity Dollar Income Fund, Inc. Bond Philequity
Philequity Fund, Inc. Equities Philequity
Philequity Peso Bond Fund, Inc. Bond Philequity
Philequity PSE Index Fund, Inc. Index Philequity
Philequity Strategic Growth Fund, Inc. Equtiies Philequity
Philippine Stock Index Fund, Inc. Index BPI Investments
Soldivo Bond Fund, Inc. Bond Rampver
Soldivo Strategic Growth Fund, Inc. Equities Rampver
Sun Life of Canada Prosperity Balanced Fund, Inc. Balanced Sun Life
Sun Life of Canada Prosperity Bond Fund, Inc. Bond Sun Life
Sun Life Of Canada Prosperity Philippine Equity Fund, Inc. Equities Sun Life
Sun Life Prosperity Dollar Abundance Fund, Inc. Bond Sun Life
Sun Life Prosperity Dollar Advantage Fund, Inc. ($) Balanced Sun Life
Sun Life Prosperity Dollar Starter Fund, Inc. Money Market Sun Life
Sun Life Prosperity Dollar Wellspring Fund,Inc. Balanced Sun Life
Sun Life Prosperity Dynamic Fund, Inc. Balanced Sun Life
Sun Life Prosperity GS Fund, Inc. Bond Sun Life
Sun Life Prosperity Money Market Fund, Inc. Money Market Sun Life
Sun Life Prosperity Philippine Stock Index Fund, Inc. Index Sun Life
Sun Life Prosperity World Voyager Fund,Inc. Equities Sun Life
United Fund, Inc. Equities Cocolife



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