Top Mutual Fund Companies in the Philippines
A few friends have been asking us which mutual fund companies in the Philippines to invest in and while we are not really experts, I can say that our two-years-ish of experience in research and investing should be enough to be able to provide some general answers in things related to money and finance.
But, first things first, it is important for one to know that jumping into investing without research or without a solid financial foundation is a big risk. Why? Because without backup funds, you could end up withdrawing some or all of the money you have invested and, in the case of long term investments especially, could let you incur more losses. Thus, make sure to have followed these financially-responsible moves before getting started.
Now, if you are not aware what mutual funds are, check out this past post I have about it where I try to answer a few basic questions on mutual funds. If you are skeptical about growing your money in mutual funds or investing in general, here is what you could be missing out.
All set? Okay. Read on.
Here are the top five mutual fund companies in the Philippines that we would suggest you start investing in:
First Metro Asset Management, Inc. (FAMI)
We have some bias over here since FAMI is the one and only mutual fund company we have been invested in for the past two years. We love that despite starting out in our investments at a higher NAVPS (net asset per value share) and with Yolanda and so many other calamities coming in the country, our equity fund has performed quite well. Oh, and did I mention that we also withdrew a portion of the fund for personal reasons? See, I told you not to start out when your backup funds are not yet ready. Even so, we have seen around a 4% growth – not bad if you compare it to the banks!
FAMI, by the way, is a part of the Metrobank Group of Companies and was established in 2005 (fairly new) by the First Metro Investment Corporation in partnership with the Catholic Educational Association of the Philippines (CEAP) and the Marist Brothers Foundation.
We chose this over all other mutual fund companies since it was the only one that has an office here in Cebu – or so we think – at the time of account opening and also because it was among the consistent top performers (as of writing, 5-year return is at 19.56%).
Philequity Management, Inc. (PEMI)
PEMI, established back in 1994, is the proud manager and distributor of the PhilEquity Fund, Inc. (PEFI), which has consistently been at the top in the list of the best performing mutual funds in the Philippines (as of writing, 5-year return is at 22.04% already). I think that that reason alone should be enough to convince you to open an account with them.
Philam Asset Management, Inc. (PAMI)
Another mutual fund company that constantly stays on the top performers’ list is PAMI. The company was established in 1992 and is a member of the AIA Group which is the largest provider of life insurance in the Asian region. PAMI currently manages nine funds of different types to cater to the varying risk appetites of their clients. Their growth fund currently has a 5-year return of 16.31%.
PAMI (Website | Facebook)
Sun Life Asset Management Company, Inc.
You have probably heard of Sun Life from the television because of Piolo Pascual. The truth is that I have some skepticism when it comes to investing for mutual funds in a company more known for its life insurance (don’t get me wrong, the partner and I do have our personal insurance policies). I was surprised to see its performance over the years – Sun Life Asset Management Company started operations in 2000 and has been one of the top performing mutual funds ever since. Their equity fund now has a 5-year return of 17.21%.
ALFM Mutual Funds
I honestly had no clue what this company was until I made some research for this post. It turns out, ALFM Mutual Funds are actually managed by the BPI Investment Management. No wonder they have been consistently at the top for years now. Currently, ALFM Growth Funds (the ones mostly invested in stocks) has a 5-year return set at 15.72% already.
Of course, there are a whole lot of other mutual fund companies out there. Even though the past performance doesn’t always tell their present or future outcomes, it is always best to stick with those that have consistently shown great performance, right? Then you can be assured that your hard-earned money are in safe hands. (Just remember that investing still entails a lot of risks even when properly managed.)
To see more mutual funds and their performance over the years, check out pifa.com.ph. This is where you can also check out if the mutual funds being offered to you is legitimate or not.