PIME 004: Everything You Need to Know in Investing in Mutual Funds in the Philippines – Q&A Part 2

In this session, we continue to talk about the frequently asked questions that I receive from different Filipinos around the world regarding the subject of Investing in Mutual Funds in the Philippines.

If you missed the first part of this series, you can just visit Pinoy Investing Made Easy Podcast No. 3 so you can have a solid base in understanding this session.

Here are the questions that I’ve tried to answer with the hope of further strengthening your knowledge about mutual funds.

  • How much do I need to open a Mutual Fund account?
  • Am I required to make additional investments every month in my mutual fund investment?
  • Can OFWs open a mutual fund account even if they are still out of the country?
  • How will I know which mutual fund company to choose?
  • What are the charges/fees involved in investing in Mutual Funds?

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In this podcast, we’ve mentioned the following links:

 

PIME 003: Everything You Need to Know in Investing in Mutual Funds in the Philippines – Q&A

In this session, we talk about the frequently asked questions in investing in mutual funds herein the Philippines.

This session is for you if:

  • You haven’t heard anything yet with mutual funds but are open to learning new things that could benefit you and your family.
  • You are considering to invest in mutual funds but very apprehensive to start because of fear due to lack of knowledge
  • You have already started but hungry to obtain deeper knowledge about mutual funds so you can take advantage of your investment and make the most out of it.

This session is the first of the series of podcasts that will tackle the frequently asked questions that I have encountered while talking about Mutual Funds for the last 5 years through my blog MutualFundPhilippines.com.

For this part 1, we were able to answer the following questions:

  1. What are Mutual Funds?
  2. How does it work?
  3. Can I instruct the fund manager on where I want my money to be invested?
  4. How can I make money from Mutual Funds?
  5. Why do the price per share of Mutual Funds (NAVPS) increase or decrease?
  6. How can I start investing in Mutual Funds?

Here are the links mentioned in this podcast session:

  • Steps on how to invest in mutual funds in the Philippines (here)
  • Philippine Investment Funds Association (PIFA) – www.PIFA.com.ph

For the continuation of this series, you may check out Session No. 4 for more questions answered in a very detailed manner.

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PIME 002: Where to Start Your Journey to Financial Independence?

Starting something always feel difficult and uncomfortable. That’s same for any life experience as it is in money.

In this session, we’ve tackled the first things that we need to understand and accept before really taking the road to financial independence.

Busting the myth: “Money is the root of evil”

Blaming money for most terrible things that happen in life is one of our favourite excuse in failing to manage it correctly. After all, most of us believe that Money is the root of evil.

Contrary that, we have to understand that money is just a tool that does not have life on its own. It is whom who use it has the morality of being good or bad – it us, people.

It is about being a good or a bad person, not a good or a bad money.

In this session, I compared money to a knife.

A knife is a tool often used in cooking our meals – used in cutting meat, chopping vegetables, etc… However, that same knife is used by some people to commit murder and some use it in threatening other people.

Again, there are good and bad people, not good and bad things (money).

The Pillars of Financial Foundation

Once we have accepted that money is just a tool. The next best step is to educate ourselves on how to manage it and how to make it work for us, and not against us (debts).

I. Build an Emergency Fund

We have a habit of giving our own definition of emergencies. The need to buy a luxury bag that is on a DISCOUNT is not an emergency!

Emergency fund aims to safeguard your investments by being the second line of defence in case emergencies happen – the REAL emergencies. I’ve mentioned “second line of defence” since insurance are really the first line defence.

As a rule of thumb, we have to keep at least 3 to 6 months worth of our monthly expenses.

II. Get Protection through Insurance (Life, health, and the necessary non-life)

Insurance stands as our first line of defence to Financial Stress.

During time of need, say you will be hospitalized, or in a vehicular accident, what comes first thing to mind? Insurance, definitely.

Insurance protects us from spending a huge chunk of money during sickness, accidents, and other life’s contingencies. It protects our emergency fund from being spent, avoiding any unnecessary financial stress in the process.

Once both insurance and emergency funds are in place, you’re now ready to invest.

III. Make Money Work for you by Investing

Investments aid us in making our money work for us. We worked so hard to earn money. It’s just right to make money work for us, real hard.

There are various forms of investments. We can invest in our own business, stocks, mutual funds, etc…

Let’s discuss them in future sessions.

IV. Prepare for transferring wealth (Legacy)

After accumulating these wealth, at one point in our lives, we have to transfer them to our heirs/loved ones. If transferring wealth is just as easy as abc, then there’s no need to prepare.

But this is a complex aspect of personal finance, especially if the government is involved.

In the future sessions, let’s talk about Estate Tax.

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PIME 001: Welcome to the Pinoy Investing Made Easy Podcast

Pinoy Investing Made Easy

Welcome to the very first episode of Pinoy Investing Made Easy Podcast. Yehey!

For eight (8) years, I’ve been sharing a lot of things that I know and things that I continue to learn through articles (blog posts).

I’ve been contemplating to add a new medium in sharing my knowledge that could benefit my readers. After a long thinking and self-convincing, I’m publishing my very first podcast. 🙂

So, what’s Pinoy Investing Made Easy Podcast all about?

Well, check it out by hitting the play button! 🙂

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Top Performing UITFs in the Philippines as of October 31, 2015

Unit Investment Trust Funds, popularly referred to as UITFs are pooled funds similar to Mutual Funds, only it is managed by Banks.

Here are the Top Performing UITFs in the Philippines from UITF.com.ph as of October 31, 2015.

Top 5 Equity Funds (Year-to-Date)

Bank Fund Name ROI
China Banking Corporation CBC EQUITY FUND 2.43%
Bank of the Philippine Islands BPI Philippine High Dividend Equity Fund 1.99%
Bank of the Philippine Islands BPI Equity Value Fund 1.20%
Asia United Bank Equity Investment Trust Fund -0.17%
Philippine National Bank AUP EQUITY FUND -0.71%

Top 5 Balanced Funds  (Year-to-Date)

Bank Fund Name ROI
Robinsons Bank RBank Balanced Fund 1.51%
Bank of the Philippine Islands BPI Balanced Fund 1.51%
Philippine Bank of Communications BEST BALANCED FUND 1.34%
China Banking Corporation CBC BALANCED FUND 0.69%
Development Bank of the Philippines GINTONG SIKAP SECURE FUND 0.61%

Top 5 Intermediate Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
Union Bank UnionBank Infinity Prime Fund 2.63%
Portfolio Duration: 2.41 year(s) as of 2nd quarter of 2015
Union Bank UnionBank Medium Term Fixed Income Portfolio 2.48%
Portfolio Duration: 2.28 year(s) as of 2nd quarter of 2015
Security Bank Corporation SB INTERMEDIATE TERM PESO BOND FUND 2.27%
Portfolio Duration: 1.84 year(s) as of 3rd quarter of 2015
Metropolitan Bank & Trust Co. Metro Max-3 Bond Fund 1.37%
Portfolio Duration: 2.35 year(s) as of 2nd quarter of 2015
Bank of the Philippine Islands BPI Premium Bond Fund 1.36%
Portfolio Duration: 1.26 year(s) as of 2nd quarter of 2015

Top 5 Medium Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
BDO Unibank, Inc. BDO PESO FIXED INCOME FUND 3.42%
Portfolio Duration: 3.10 year(s) as of 3rd quarter of 2015
Asia United Bank Peso Investment Trust Fund 3.09%
BDO Unibank, Inc. BDO PESO BOND FUND 2.94%
Portfolio Duration: 3.02 year(s) as of 3rd quarter of 2015
Union Bank UnionBank Philippine Peso Fixed Income Portfolio 2.43%
Portfolio Duration: 3.97 year(s) as of 2nd quarter of 2015
BDO Unibank, Inc. BDO MERIT FUND MEDIUM TERM PORTFOLIO 1.67%
Portfolio Duration: 3.31 year(s) as of 3rd quarter of 2015

Top 5 Long Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
AB Capital AB CAPITAL PREMIUM FUND 6.35%
Portfolio Duration: 1.09 year(s) as of 3rd quarter of 2015
Union Bank UnionBank Long Term Fixed Income Portfolio 4.37%
Portfolio Duration: 4.44 year(s) as of 2nd quarter of 2015
Union Bank UnionBank Tax Exempt Portfolio 3.24%
Portfolio Duration: 2.65 year(s) as of 2nd quarter of 2015
Security Bank Corporation SB PESO BOND FUND 2.13%
Portfolio Duration: 7.90 year(s) as of 3rd quarter of 2015
Bank of the Philippine Islands ABF Philippines Bond Index Fund 1.99%
Portfolio Duration: 7.61 year(s) as of 2nd quarter of 2015

Disclaimer: Past performance is not an indication of future results. There are several risks associated with investing in mutual funds/UITF which are further discussed and enumerated in the fund’s prospectus. Please read the fund’s prospectus before you start investing. 

Top Mutual Funds in the Philippines as of October 31, 2015

As of October 31, 2015, the Philippines has a total of 54 active Mutual Fund Companies as per Philippine Investment Fund Association (PIFA).

top performing mutual funds in the philippines
Top 5 Equity Funds Year To Date

  Fund Name NAVPS YTD Return
1 Philequity Dividend Yield Fund, Inc. 1.2138 26.04%
2 United Fund, Inc. 3.2892 1.15%
3 First Metro Save and Learn Equity Fund,Inc. 5.5523 -0.36%
4 Philippine Stock Index Fund Corp. 802.56 -0.47%
5 Philequity PSE Index Fund Inc. 4.7688 -0.97%

Updated Nov 12, 2015: PIFA has updated their website showing a -3.42% YTD loss for Philequity Dividend Yield Fund Inc.

Top 5 Balanced Funds Year To Date

Fund Name NAVPS YTD Return
1 Cocolife Dollar Fund Builder, Inc. $0.03539 2.28%
2 Bahay Pari Solidaritas Fund, Inc. 2.0473 0.65%
3 First Metro Save and Learn Balanced Fund Inc. 2.7959 -0.15%
4 One Wealthy Nation Fund, Inc. 1.0263 -1.22%
5 Sun Life Prosperity Dollar Advantage Fund, Inc. $3.1616 -1.43%

Top 5 Bond Funds Year To Date

Fund Name NAVPS YTD Return
1 Cocolife Fixed Income Fund, Inc. 2.5223 4.21%
2 ATRAM Total Return Dollar Bond Fund Inc. $1.0989 3.41%
3 Philam Dollar Bond Fund, Inc. $2.1355 2.90%
4 ALFM Dollar Bond Fund, Inc. $418.61 2.54%
5 Sun Life of Canada Prosperity Bond Fund, Inc. 2.7686 2.51%

Top 10 Mutual Funds in the Philippines as of October 31, 2015 as to 5-Year Return

Fund Name Fund Type NAVPS 5 yr. Return
1 Philequity PSE Index Fund Inc. Equity Fund 4.7688 12.02%
2 Philequity Fund, Inc. Equity Fund 35.0043 11.92%
3 Philippine Stock Index Fund Corp. Equity Fund 802.56 11.90%
4 First Metro Save and Learn Equity Fund,Inc. Equity Fund 5.5523 9.88%
5 NCM Mutual Fund of the Phils., Inc Balanced Fund 1.8273 9.23%
6 First Metro Save and Learn Fixed Income Fund,Inc. Bond Fund 2.2211 9.18%
7 Sun Life Prosperity Philippine Equity Fund, Inc. Equity Fund 3.9723 8.92%
8 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 2.0473 8.46%
9 ATRAM Dynamic Allocation Fund, Inc. Balanced Fund 1.7953 8.33%
10 First Metro Save and Learn Balanced Fund Inc. Balanced Fund 2.7959 7.33%

Disclaimer: Past performance is not an indication of future results. There are several risks associated with investing in mutual funds which are further discussed and enumerated in the fund’s prospectus. Please read the fund’s prospectus before you start investing.

Top Performing UITFs in the Philippines as of September 30, 2015

Unit Investment Trust Funds, popularly referred to as UITFs are pooled funds similar to Mutual Funds, only it is managed by Banks.

Here are the Top Performing UITFs in the Philippines from UITF.com.ph as of September 30, 2015.

Top 5 Equity Funds (Year-to-Date)

Bank Fund Name ROI
Bank of the Philippine Islands BPI Philippine High Dividend Equity Fund -0.51%
China Banking Corporation CBC EQUITY FUND -0.53%
Bank of the Philippine Islands BPI Equity Value Fund -1.40%
Bank of the Philippine Islands Odyssey Tax-Exempt Philippine Equity Fund -2.59%
Bank of the Philippine Islands Odyssey Philippine Equity Fund -2.87%

Top 5 Balanced Funds  (Year-to-Date)

Bank Fund Name ROI
Philippine Bank of Communications BEST BALANCED FUND 1.30%
Development Bank of the Philippines GINTONG SIKAP SECURE FUND 0.55%
Bank of the Philippine Islands BPI Balanced Fund 0.08%
Bank of the Philippine Islands Odyssey Diversified Capital Fund -0.53%
Robinsons Bank RBank Balanced Fund -0.54%

Top 5 Intermediate Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
Security Bank Corporation SB Intermediate Term Peso Bond Fund 2.35%
Portfolio Duration: 0.71 year(s) as of 2nd quarter of 2015
Union Bank UnionBank Infinity Prime Fund 1.85%
Portfolio Duration: 2.41 year(s) as of 2nd quarter of 2015
Union Bank UnionBank Medium Term Fixed Income Portfolio 1.65%
Portfolio Duration: 2.28 year(s) as of 2nd quarter of 2015
Bank of the Philippine Islands BPI Premium Bond Fund 1.29%
Portfolio Duration: 1.26 year(s) as of 2nd quarter of 2015
China Banking Corporation CBC INTERMEDIATE FIXED-INCOME FUND 1.24%
Portfolio Duration: 0.04 year(s) as of 2nd quarter of 2015

Top 5 Medium Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
BDO Unibank, Inc. BDO PESO FIXED INCOME FUND 3.49%
Portfolio Duration: 3.27 year(s) as of 2nd quarter of 2015
BDO Unibank, Inc. BDO PESO BOND FUND 2.96%
Portfolio Duration: 3.32 year(s) as of 2nd quarter of 2015
Asia United Bank Peso Investment Trust Fund 2.62%
Union Bank UnionBank Philippine Peso Fixed Income Portfolio 1.91%
Portfolio Duration: 3.97 year(s) as of 2nd quarter of 2015
BDO Unibank, Inc. BDO MERIT FUND MEDIUM TERM PORTFOLIO 1.81%
Portfolio Duration: 3.65 year(s) as of 2nd quarter of 2015

Top 5 Long Term Bond Funds (Year-to-Date)

Bank Fund Name ROI
AB Capital AB CAPITAL PREMIUM FUND 6.29%
Portfolio Duration: 1.09 year(s) as of 3rd quarter of 2015
Union Bank UnionBank Long Term Fixed Income Portfolio 2.76%
Portfolio Duration: 4.44 year(s) as of 2nd quarter of 2015
Union Bank UnionBank Tax Exempt Portfolio 2.62%
Portfolio Duration: 2.65 year(s) as of 2nd quarter of 2015
Bank of the Philippine Islands ABF Philippines Bond Index Fund 1.72%
Portfolio Duration: 7.61 year(s) as of 2nd quarter of 2015
Security Bank Corporation SB PESO BOND FUND 1.58%
Portfolio Duration: 5.04 year(s) as of 2nd quarter of 2015

Disclaimer: Past performance is not an indication of future results. There are several risks associated with investing in mutual funds which are further discussed and enumerated in the fund’s prospectus. Please read the fund’s prospectus before you start investing. 

Top Mutual Funds in the Philippines as of September 30, 2015

As of September 30, 2015, the Philippines has a total of 54 active Mutual Fund Companies as per Philippine Investment Fund Association (PIFA).

top performing mutual funds in the philippines
Top 5 Equity Funds Year To Date

Fund Name NAVPS YTD Return
United Fund, Inc. 3.1352 -3.59%
Philippine Stock Index Fund Corp. 767.82 -4.77%
Philequity PSE Index Fund Inc. 4.5688 -5.12%
First Metro Save and Learn Equity Fund,Inc. 5.2842 -5.17%
ALFM Growth Fund, Inc 245.41 -6.06%

Top 5 Balanced Funds Year To Date

Fund Name NAVPS YTD Return
Cocolife Dollar Fund Builder, Inc. $0.03506 1.33%
Bahay Pari Solidaritas Fund, Inc. 2.0028 -1.53%
First Metro Save and Learn Balanced Fund Inc. 2.7115 -3.16%
PAMI Horizon Fund, Inc. 3.5733 -4.30%
Sun Life of Canada Prosperity Balanced Fund, Inc. 3.5974 -4.34%

Top 5 Bond Funds Year To Date

Fund Name NAVPS YTD Return
Cocolife Fixed Income Fund, Inc. 2.5113 3.76%
ATR KimEng Total Return Bond Fund Inc. $1.0864 2.23%
Ekklesia Mutual Fund Inc. 2.0529 1.69%
ALFM Dollar Bond Fund, Inc. $415.12 1.69%
Grepalife Fixed Income Fund Corp. P 1.6448 1.43%

Top 10 Mutual Funds in the Philippines as of September 30, 2015

Fund Name Fund Type NAVPS 5 yr. Return
1 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 2.0028 13.49%
2 Philequity PSE Index Fund Inc. Equity Fund 4.5688 11.73%
3 Philequity Fund, Inc. Equity Fund 33.631 11.64%
4 Philippine Stock Index Fund Corp. Equity Fund 767.82 11.27%
5 First Metro Save and Learn Equity Fund,Inc. Equity Fund 5.2842 10.57%
6 First Metro Save and Learn Fixed Income Fund,Inc. Bond Fund 2.2119 9.43%
7 NCM Mutual Fund of the Phils., Inc Balanced Fund 1.7819 8.68%
8 Sun Life Prosperity Philippine Equity Fund, Inc. Equity Fund 3.806 8.57%
9 ATRAM Dynamic Allocation Fund, Inc. Balanced Fund 1.765 8.53%
10 First Metro Save and Learn Balanced Fund Inc. Balanced Fund 2.7115 8.40%

Disclaimer: Past performance is not an indication of future results. There are several risks associated with investing in mutual funds which are further discussed and enumerated in the fund’s prospectus. Please read the fund’s prospectus before you start investing.

Winning Strategies to Getting Out of Debt

Debts, especially credit card debts, have become a real part of the modern day life.

Many of us had fallen to the trap of this modern day slavery – perhaps of our own doing or due to some outside forces that we have little or no control of. Nevertheless, these debts have been putting a lot of stress in many peoples day to day lives – directly affecting the quality of their lives.

With this video, Registered Financial Planner Marvin Germo discuss some tips that we may follow to get out of this unwanted financial mess.

Here are some insights that our worth highlighting.

Take inventory of all of your debts

To further understand the facts of our debts, laying them all, written in a paper will allow us to see clearly our current financial circumstances.

Also, this activity will help us see the debts that charge the highest interests, which we should prioritise to pay, and manage those that are not interest-heavy.

Marvin and the hosts also talks about an option on making compromise with the lending institutions in removing the interests on existing loans, but emphasized that this route is not easy to take.

Though it may be true that nobody gets to jail by not paying debts, having bad credit records will forgo future opportunities of borrowing funds for future endeavours like buying a house, a car, and so on.

Sell unnecessary stuffs at home

In most households, there are items that just idle in closets, cabins, and many areas of the house. Marvin suggested to just sell those stuffs and use the proceeds in paying off debts.

We may use OLX to sell these pre-loved items.

Look at your budget

Debts are often incurred due to how we spend and on the things that we spend on. It is very important to look at our budget and remove the unnecessary expenses.

What’s important is that we do things regularly and consistently for a long period of time. As long as we have the drive and determination to be debt-free, everything is possible.

How much do I need to start a VUL Policy?

Hi,

I’m interested to start my very first life insurance policy, and I’m considering to get a VUL because aside from having life insurance, I will also be invested in the stock market, which is nice.

My question is this, since my salary is not that high, how much can do I need to invest to start my VUL policy?

Appreciate your response.

Thank you