Top Mutual Funds in the Philippines as of January 31, 2016

As of January 31, 2016, the Philippines has a total of 55 active Mutual Fund Companies as per Philippine Investment Fund Association (PIFA).

The Philippine Stock Exchange Index (PSEi) is still not showing a sign of recovery with an indication that it’s nearing a bear market. Nevertheless, if you are a long term investor trying to prepare for your own retirement or for the education of your children with a time frame of beyond 10 years, this is actually a great opportunity to accumulate more shares and invest more.

Philippine Stock Exchange Index

Ups and downs are regular phenomenon in the investing market. If you are just starting out in investing and is already experiencing these downfalls, don’t be disheartened. Again, this is an opportunity that you should take.

Given that, here are how mutual funds perform during January 2016.

Top 5 Equity Funds Based on Year-To-Date (YTD) Return

Fund Name Fund Type NAVPS YTD
1 Philam Strategic Growth Fund, Inc. Equity Fund 480.71 -4.95%
2 ALFM Growth Fund, Inc Equity Fund 233.59 -5.08%
3 PAMI Equity Index Fund, Inc. Equity Fund 44.255 -5.26%
4 Sun Life Prosperity Philippine Stock Index Fund, Inc. Equity Fund 0.8442 -5.36%
5 United Fund, Inc. Equity Fund 2.9583 -5.46%

Top 5 Balanced Funds Based on Year-To-Date (YTD) Return

Fund Name Fund Type NAVPS YTD
1 Cocolife Dollar Fund Builder, Inc. Balanced Fund $0.03541 0.06%
2 NCM Mutual Fund of the Phils., Inc Balanced Fund 1.745 -2.40%
3 Philam Fund, Inc. Balanced Fund 15.5631 -2.64%
4 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 1.9463 -2.71%
5 PAMI Horizon Fund, Inc. Balanced Fund 3.4663 -2.71%

Top 5 Bond Funds Based on Year-To-Date (YTD) Return

Fund Name Fund Type NAVPS YTD
1 Sun Life Prosperity Dollar Abundance Fund, Inc. Bond Fund $2.8803 1.51%
2 Philam Dollar Bond Fund, Inc. Bond Fund $2.1419 1.50%
3 Grepalife Dollar Bond Fund Corp. Bond Fund $1.7315 1.21%
4 PAMI Global Bond Fund, Inc Bond Fund $1.0588 0.97%
5 ALFM Dollar Bond Fund, Inc. Bond Fund $421.33 0.69%

Top 10 Mutual Funds in the Philippines as of January 31, 2016 (5-Year Return)

Fund Name Fund Type NAVPS 5 yr. Return
1 Philequity PSE Index Fund Inc. Equity Fund 4.3591 11.04%
2 Philequity Fund, Inc. Equity Fund 31.7979 10.30%
3 First Metro Save and Learn Fixed Income Fund,Inc. Bond Fund 2.2034 8.44%
4 First Metro Save and Learn Equity Fund,Inc. Equity Fund 4.8636 7.80%
5 ATRAM Dynamic Allocation Fund, Inc. Balanced Fund 1.6681 7.42%
6 Sun Life Prosperity Philippine Equity Fund, Inc. Equity Fund 3.5776 7.39%
7 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 1.9463 7.24%
8 Sun Life of Canada Prosperity Balanced Fund, Inc. Balanced Fund 3.4699 6.51%
9 Philequity Peso Bond Fund, Inc. Bond Fund 3.4583 6.11%
10 Cocolife Fixed Income Fund, Inc. Bond Fund 2.5505 6.07%

2015’s Best Performing Mutual Funds and UITF’s in the Philippines

The year 2015 had been a bumpy ride for investors here in the Philippines. The Philippine Stock Exchange had a great start during the year until it goes down during April like there’s no tomorrow. This perhaps demoralized many new investors in the stock market.

That said, all Mutual Funds and UITFs are greatly affected.

These events, however, highlights one key principle in investing – don’t put your eggs in one basket, also known as Diversification. Diversify not only on fund managers, but on different asset classes as well (invest not only on equity or stock funds, but also on bond or fixed income funds).

PSEi 2015

2015’s Best Mutual Funds in All Category

According to the data coming from the Philippine Investment Fund Association (PIFA), the top performing Mutual Fund Company in the Philippines as for the year 2015 is Cocolife Fixed Income Fund, Inc., making 5.03% for the whole 2015.

This is a fund invested on fixed income securities. Based on it’s November 2015 Fund Fact Sheet, this is how the fund is invested.

Cocolife Fixed Income Fund

10 Top Performing Mutual Funds in all Category for the Year 2015

One thing that we’ll notice in the Top 10 Mutual Funds for 2015 is that there were no Equity Funds the qualified for the list. Yes, equity funds have the highest potential of return and has proved to be bringing the highest returns to investors in the long term. But with all these, we should also be aware that equity funds entails the highest risk of them all. Let’s just not forget that.

Fund Name Fund Type NAVPS YTD Return
1 Cocolife Fixed Income Fund, Inc. Bond Fund 2.542 5.03%
2 ATRAM Total Return Dollar Bond Fund, Inc. Bond Fund $1.0938 2.93%
3 ALFM Dollar Bond Fund, Inc. Bond Fund $418.32 2.47%
4 Cocolife Dollar Fund Builder, Inc. Balanced Fund $0.03539 2.28%
5 Philam Dollar Bond Fund, Inc. Bond Fund $2.1083 1.59%
6 Philequity Dollar Income Fund Inc. Bond Fund $0.0554635 1.58%
7 Sun Life Prosperity Money Market Fund, Inc. Money Market Fund 1.1396 1.28%
8 ALFM Money Market Fund, Inc. Money Market Fund 114.23 1.12%
9 ALFM Peso Bond Fund, Inc. Bond Fund 322.75 1.10%
10 Ekklesia Mutual Fund Inc. Bond Fund 2.0386 0.99%

Now let’s go to the Top UITFs

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

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

Equity funds have declined compared to the results of stock market performance last October. This trend is not unique to mutual funds. The equivalent managed fund UITF is also moving in the same direction as of month ending October.

Balanced funds in general are going down as well compared to the previous month’s performance, comparatively doing better though with equity funds. As we all know, balanced funds are in the moderate risk profile, consisting both stocks and fixed income instruments in the portfolio.

The most profitable market as of November month end is the fixed income market, providing the Bond Funds’ investors a YTD rate of return ranging from 1.55% to 4.57% for the top 5 in the category.

Need more information about Mutual Funds? Check out this podcast session.

Top 5 Equity Funds Year-to-Date

Fund Name Fund Type NAVPS YTD Return
1 United Fund, Inc. Equity Fund 3.1966 -1.70%
2 Philippine Stock Index Fund Corp. Equity Fund 788.1 -2.26%
3 Philequity PSE Index Fund Inc. Equity Fund 4.6841 -2.72%
4 First Metro Save and Learn Equity Fund,Inc. Equity Fund 5.4167 -2.79%
5 ALFM Growth Fund, Inc Equity Fund 250.33 -4.18%

Top 5 Balanced Funds Year-to-Date

Fund Name Fund Type NAVPS YTD
1 Cocolife Dollar Fund Builder, Inc. Balanced Fund $0.03546 2.49%
2 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 2.0174 -0.82%
3 Sun Life Prosperity Dollar Advantage Fund, Inc. Balanced Fund $3.151 -1.76%
4 First Metro Save and Learn Balanced Fund Balanced Fund 2.7497 -1.80%
5 One Wealthy Nation Fund, Inc. Balanced Fund 1.0119 -2.61%

Top 5 Bond Funds Year-to-Date

Fund Name Fund Type NAVPS YTD
1 Cocolife Fixed Income Fund, Inc. Bond Fund 2.5308 4.57%
2 ATRAM Total Return Dollar Bond Fund, Inc. Bond Fund $1.0956 3.10%
3 ALFM Dollar Bond Fund, Inc. Bond Fund $417.65 2.31%
4 Philam Dollar Bond Fund, Inc. Bond Fund $2.1146 1.89%
5 Philequity Dollar Income Fund Inc. Bond Fund $0.0554466 1.55%

Top 10 Mutual Funds in the Philippines as of November 30, 2015 (5-Year Return)

Fund Name Fund Type NAVPS 5 yr. Return
1 Philequity PSE Index Fund Inc. Equity Fund 4.6841 12.52%
2 Philippine Stock Index Fund Corp. Equity Fund 788.1 12%
3 Philequity Fund, Inc. Equity Fund 34.3139 11.98%
4 First Metro Save and Learn Equity Fund,Inc. Equity Fund 5.4167 9.01%
5 NCM Mutual Fund of the Phils., Inc Balanced Fund 1.802 8.92%
6 First Metro Save and Learn Fixed Income Fund,Inc. Bond Fund 2.2091 8.74%
7 Sun Life Prosperity Philippine Equity Fund, Inc. Equity Fund 3.8807 8.73%
8 ATRAM Dynamic Allocation Fund, Inc. Balanced Fund 1.7553 8.09%
10 Bahay Pari Solidaritas Fund, Inc. Balanced Fund 2.0174 7.71%

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 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.

Why Invest in a Single Premium VUL (SPVUL) instead of Mutual Funds or UITF

You have at least P500,000.00 in your bank deposit account and are planning to invest it in an investment that would help you make your money work for you. You were brought to several options, and you have ended up choosing between a Single Premium VUL, a Mutual Fund, or a UITF.

Now, you’re confused.

First off, the listed options are all pooled funds managed by professionals called fund managers. In investing in either of the three, you will be asked whether you’ll want to invest your money in an Equity Fund, a Bond Fund, or a Balanced Fund.

They are the same in almost all aspects. Their difference lies on the structural aspect. Single Premium VULs are offered by insurance companies, thus, are regulated by the Insurance Commission (IC).

Unit Investment Trust Fund, popularly referred to as UITF, are offered by banks and managed by their trust department. The regulatory body is the Bangko Sentral ng Pilipinas (BSP).

Mutual Funds, on the other hand, are managed by Investment Companies and are regulated by the Securities and Exchange Commission (SEC).

I know, stating those differences doesn’t bring up any clarity in your decision making. Now, let’s talk about benefits.

mf vs. spvul

Benefits of investing in Single Premium VULs over Mutual Funds and UITF.

The truth is, there’s really not much difference between a mutual fund and UITF in terms of benefit. For discussion purposes we’ll just compare Mutual Funds and Single Premium VULs.

Allow me to use Sun Life’s Maxilink One as a sample for Single Premium VUL, and Sun Life’s Prosperity Fund for Mutual Fund.

Here’s the situation. You have P500,000.00 to invest in a 10 year time frame. You are inclined to investing in an Equity Fund, you’re just not quite sure whether to choose a Mutual Fund (or UITF) or a Single Premium VUL.

Now, you decided to look at the numbers.

Let’s assume that in both funds, the average annual rate of return is 10%. Both funds, Mutual Fund and Single Premium VUL, uses a backend fee system of 5%, diminishing by 1% yearly (If investment is redeemed in the first year, charge is 5%, if on second year, 4%, and so on and so forth. Redemption of investment after the 5th year no longer have a redemption charge.)

Investing in Mutual Funds

 
Year Fund Values
1 550,000
2 605,000
3 665,500
4 732,050
5 805,255
6 885,781
7 974,359
8 1,071,794
9 1,178,974
10 1,296,871

Projected fund value of the mutual fund investment after 10 years is P1,296,871. Mutual Funds are very flexible that you can withdraw your investment anytime without being bounded by holding period. However, there are sanctions for early redemption.

Investing in Single Premium VUL

 
Year Charges Fund Values
1 266 548,615
2 168 602,146
3 137 660,995
4 102 725,608
5 61 796,537
6 18 874,399
7 959,872
8 1,053,700
9 1,156,700
10 1,289,986

At year 10, the projected Fund Value for a Single Premium VUL is P1,289,986.00. The difference of P6,885.23 to the fund value of Mutual Fund is attributable to the insurance charges for the Single Premium VUL. Investment benefits are identical for Mutual Funds and Single Premium VUL.

Looking at the projected 10 year fund value, you might be concluding that it’s best to invest in mutual funds because it’s higher than Single Premium VUL by P6,885.23.

Benefits of a Single Premium VUL over Mutual Funds, UITF, Bank Deposits, and Real Estate Investments

It is an insurance product. Thus, the minuscule difference of P6,885.23 is really very immaterial compared to the benefits it could provide to the investor (or beneficiaries of investors).

I. Minimum Death Benefit. The death benefit for a Single Premium VUL is then higher of 125% of Single Premium or the Fund Value. In our illustration, it is the higher of P625,000 (P500,000 x 125%) or the current Fund Value of the investment.

This means that in the event a policyholder (investor of a Single Premium VUL) dies while the fund value of his investment is lower than P625,000, his beneficiaries will still receive the minimum death benefit of P625,000.

Say the fund value of the invested P500,000 at the time of death is P400,000 (market declined significantly), the beneficiaries will still be receiving the GUARANTEED minimum death benefit of P625,000 (as long as no withdrawal was made in the fund).

Or lets say the fund value at the time of death is P800,000 (market rises significantly), the beneficiaries will be receiving P800,000, which is higher compared to the minimum death benefit.

In case of a Mutual Fund or UITF, the people left behind will receive only the fund value, regardless if it is higher or lower the the amount invested.

II. Liquidity upon death. While all other assets (investments including Mutual Funds, Stocks, Cash Deposits, and Real Estate) will be frozen by BIR until the appropriate taxes are paid, investment in a Single Premium VUL are readily available to your loved ones. The reason behind this is that Single Premium VUL is still an insurance product.

If you have defined an irrevocable beneficiary, your investment becomes tax exempt (tax-free).

The Bottom Line and Final Recommendation

On a more holistic financial planning perspective, I am recommending a Single Premium VUL over investing in Mutual Funds and UITF. It is a great tool to use in planning your Estate while having the ability to enjoy your investments while the investor is still alive, contrary to other insurance products wherein the benefit focuses upon death, including a Regular Pay VUL in it’s infancy years.

The only barrier to entry in using a Single Pay VUL is its price point – you’ll be needing a much higher initial investment compared to a Mutual Fund wherein you could start with just P5,000.

Here is my recommendation. If you have the funds and are thinking to invest in a managed fund, then go for a Single Premium VUL. Period. (Well, unless perhaps you are already FULLY INSURED)

**You can request for a Single Premium VUL Quotation here for FREE!