Mutual Fund Performance
Posted on Jan 31, 2011What is a Mutual Fund?
(source: http://www.pifa.com.ph/mf_101.html)
A Mutual Fund is an investment company that pools the funds of many individual and institutional investors to form a massive asset base. The assets are then entrusted to a full time professional fund manager who develops and maintains a diversified portfolio of security investments. People who buy shares of a mutual fund are its owners or shareholders. Their purchases provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual can make money from its securities investments in two ways: a security can pay dividends and interest to the fund, or a security can rise in value. The fund passes any dividends, interest or profits on the sale of its portfolio securities, less fund expenses, to shareholders in the form of distributions.
Current Mutual Fund Performance – As of August 26, 2011
| Fund Name | NAV Per Share | 1 yr. Return (%) | 3 yr. Return (%) | 5 yr. Return (%) | YTD Return (%) |
| Stock/Equity Fund | |||||
| ATR KimEng Equity Opportunity Fund, Inc. | 2.7675 | 17.16% | 16.49% | 12.32% | -0.76% |
| First Metro Save and Learn Equity Fund, Inc. | 3.7856 | 33.74% | 30.47% | 21.39% | 8.52% |
| Philam Strategic Growth Fund, Inc.*** | 384.21 | 22.26% | 23.12% | 17.01% | 1.58% |
| Philequity Fund, Inc. | 21.0952 | 26.84% | 26.87% | 17.7% | 4.44% |
| Philequity PSE Index Fund Inc. | 2.8502 | 22.81% | 20.59% | 18.19% | 5.37% |
| Philippine Stock Index Fund Corp.* | 473.99 | 22.2% | 18.08% | 13.81% | 3.38% |
| Sun Life Prosperity Phil. Equity Fund, Inc. | 2.6982 | 22.65% | 18.23% | 14.38% | 3.32% |
| United Fund, Inc. | 2.7584 | 7.49% | 11.8% | 9.36% | -3.52% |
| Balanced Fund | |||||
| ALFM Growth Fund, Inc * | 187.44 | 25.06% | n.a. | n.a. | -0.13% |
| Bahay Pari Solidaritas Fund, Inc.* | 1.4268 | 34.15% | n.a. | n.a. | 0.69% |
| First Metro Save and Learn Balanced Fund Inc. | 2.1086 | 30.21% | 31.82% | n.a. | 6.05% |
| GSIS Mutual Fund, Inc. | 2.9582 | 20.53% | 20.25% | 17.07% | 1.18% |
| MFCP Kabuhayan Fund, Inc. | 1.5881 | 12.42% | 12.44% | 10.14% | -1.06% |
| NCM Mutual Fund of the Phils., Inc | 1.4501 | n.a. | n.a. | n.a. | 1.26% |
| Optima Balanced Fund, Inc. | 1.2792 | 19.07% | 13.55% | 6.15% | 5.6% |
| Philam Fund, Inc. | 12.832 | 20.15% | 20.24% | 15.55% | 1.38% |
| Sun Life Prosperity Balanced Fund, Inc. | 2.7077 | 18.09% | 13.54% | 11.42% | 2.93% |
| Bond Fund | |||||
| ALFM Peso Bond Fund, Inc.* | 270.97 | 6.34% | 5.97% | 6.43% | 2.17% |
| Cocolife Fixed Income Fund, Inc. | 2.0026 | 13.65% | 11.2% | 9.35% | 5.62% |
| Ekklesia Mutual Fund Inc.* | 1.6265 | 8.27% | 5.38% | 5.58% | 3.82% |
| First Metro Save and Learn Fixed Income Fund, Inc. | 1.5438 | 10.44% | 7.75% | 6.85% | 4.54% |
| Grepalife Bond Fund Corporation | 1.1765 | 3.95% | n.a. | n.a. | 3.15% |
| Philam Bond Fund, Inc. | 3.2554 | 6.62% | 6.43% | 6.3% | 3.71% |
| Philequity Peso Bond Fund, Inc. | 2.6997 | 7.78% | 7.4% | 8.57% | 4.24% |
| Prudentialife Fixed Income Fund Inc. | 1.6059 | 5.02% | 3.16% | 5.07% | 1.49% |
| Sun Life Prosperity Bond Fund, Inc. | 2.292 | 6.7% | 6.38% | 5.36% | 3.32% |
| Sun Life Prosperity GS Fund, Inc. | 1.3461 | 7.56% | 8.56% | 6.43% | 2.03% |
* – NAVPS as of the previous banking day
** – NAVPS as of two banking days ago
Definition of Terms:
- NAVPS – Net Asset Value Per Share Price of a unit of mutual funds)
- 1/3/5 yr. Return – returns in percentage as of date indicated, if you invested on the same date (or its closest banking day) 1/3/5 years ago respectively
- YTD Return – Year To Date Return (returns in percentage as of date indicated, if you invested on the first banking day of the year)
- Stock/Equity Funds – money is invested primarily in stocks
- Balanced Funds – approximately half of the money is invested in stocks and the other half in fixed income instruments like government securities or corporate bonds
- Bond Funds – money is invested primarily in fixed income instruments like government securities and corporate bonds
I like your website it’s very informative
Thank you. Good luck on your wealth journey. [Adm-Guita]
how do i start investing in mutual fund, how much is the minimum investment?
Hi Efren. You need to choose a mutual fund company and a specific mutual fund. A complete list can be found here: http://www.icap.com.ph. You open an account with them much like you would a bank account – go to their office or meet with an licensed mutual fund agent, fill up application forms, bring 2 government issued IDs. Then you place your minimum investment (usually deposited in their nominated bank account), it differs per company but for most Php5,000 is enough. [Adm-Guita]
Thanks for this informations, and now im starting to envision of how this mutual fund investment can secure future needs. I really want to know more about this and start to invest on it. But with my little knowledge about it, can i ask if what are points or things i must consider on choosing an investment company (among all of this mutual fund companies)?
Remember, you must have your personal SAL and PIES and understand your personal financial plan. Assuming you have your long term objectives, you can choose the kind of mutual fund that is best for you (equity?, fixed income?, balanced?)
You may want to consider the top performers first both current and historical. Check out their website and communicate with them.
Best you attend our Investability seminar as explained in this website.
first I would like to thank MR.colayco , his team and partners.THANK for your sincecerest advocacy to help people improve their lives by providing sensible information regarding personal finance.KEEP IT UP AND MAY THE LORD OUR GOD BLESS YOU MORE,so that you can prvide and help more!!!
good evening… I still could not figure out the answer to the most important question of “when to get out?”
uitf have holding period but i guess it will be renewable. mutual fund have no holding period? so when do I get out>? thank you…
Hi Rafael, I think you forgot to make your goals/objectives/target before you invested. You get out when you have already achieved your goals/objectives/target. We highly suggest that you attend the Pera Mo Palaguin Mo Workshop on June 11 so that you’ll be properly guided and you can ask us directly of your concerns.
ano po ang Risk kapag Nag invest ka sa mutual fund?
When you invest in mutual funds, you buy units of the fund. These units have a price called Net Asset Value per Share (NAVPS). One risk of investing in mutual funds is that by the time you need to redeem your investment is that the NAVPS is low and the value of your investment is below what you invested. In this case, if you redeem your investment you would do so at a loss…or you could keep your investment in the mutual fund and wait till the NAVPS goes higher so you can redeem at a profit. For more information about mutual funds and other investments attend our seminars, check the schedule here http://www.colaycofoundation1.com/calendar
Marami pong salamat sa inyong information. Ako po ay isang ordinaryong OFW dito sa middleast. Pwede din po ba akong mag-invest sa mutual fund habang ako ay nandito sa ibang bansa?
Makipag-uganayan po kayo kay Joel sa kanyang email joel@colaycofoundation.com. One option is to join KsKCoop po then you can access their Regular Saving and Investing Facility.
hi..first i would like to thank mr colayco and his team for providing me the knowledge about personal finance. Now, my boyfriend and I took the first step to grow our money.. We started to invest in mutual fund. we chose equity fund. But can I ask how to monitor our sahre? I mean, do we need to monitor it everyday? and the computation for us to know our return.. thanks..
GOOD DAY SIR… MY HUSBAND IS A SEAMAN WHEN HE IS ON BOARD WALA PO KAMING PROBLEMA SA PERA BUT WHEN HE IS ON VACATION SOMETIMES IT TOOK 6MONTHS SO THE MONEY WE SAVE ARE JUST ENOUGH FOR OUR DAILY NEEDS. CAN YOU HELP OR ASSIST US TO START INVESTING IN MUTUAL FUND. WE HAVE LESS IDEA ABOUT IT. THANKS AND MORE POWER
Hi Ms. Cathy. Yan po ang kadalasang problema ng mga seamen at kanilang mga asawa. Ang solusyon lang po dyan is proper budgeting. Bilang taga-pangalaga po ng kita ng inyong asawa, we highly recommend that you attend our Pisobilities: Wealth Within Your Reach (Aug 13) or Pera Mo, Palaguin Mo Seminar (Sept 10). Our Investability: Mutual Funds will be on Sept 26. I do hope you are available on these dates. Makipag-ugnayan po kayo kay Victor Cruz (victor@colaycofoundation.com, 5024590, 6373731 or 6373741).
Thank you so much for setting up this informative website. Based on the performance right now, I think maybe I would choose to invest in the Philequity Fund Inc, then?
Philequity is a legitimate and good performing fund. You can compare their performance with other funds at http://www.pifa.com.ph
In comparing the performance of these mutual fund companies.. which column will I look? ofcourse there is the NAV/share or on the years of return? thanks so much..
Hi Ghuy. Each column has a purpose.
NAV per share/NAVPS — to find out what the current unit price is
1-Yr Return — percent change of the current price and its price 1 year ago (i.e. Aug 26 2011 vs. Aug 26 2010) — this gives you an idea how much growth is possible in 1 year this is important in financial planning as you are striving to reach a certain goal, with a target return within a specific period of time.
3-Yr Return — percent change of the current price and its price 1 year ago (i.e. Aug 26 2011 vs. Aug 26 2008) — this gives you an idea how much growth is possible in 3 years this is important in financial planning as you are striving to reach a certain goal, with a target return within a specific period of time.
5-Yr Return — percent change of the current price and its price 1 year ago (i.e. Aug 26 2011 vs. Aug 26 2006) — this gives you an idea how much growth is possible in 5 years this is important in financial planning as you are striving to reach a certain goal, with a target return within a specific period of time.
YTD – Year to date. percent change of the current price and the price from the 1st banking day of the current year (i.e. August 26, 2011 vs. January 03, 2011) — most investors realize their earnings and losses at the end of the year and reinvest on the first banking day.
Adm-Guita
I noticed in the list of mutual funds that bdo is not included. do you have any comment about its performance? Thank you.
Hi Precy. Mutual funds are not bank products. These are run by mutual fund companies (which in some cases as in the ALFM Fund are managed by mutual fund and asset management companies owned by a bank, in the case of ALFM by BPI Asset Management.) BDO has a Unit Investment Trust Fund product (the mutual fund counterpart in banks). BDO’s various UITFs have a good track record. Compare with other UITFs on http://www.uitf.com.ph [Adm-Guita]
Good pm! What is the difference investing at pifa and investing in the banks. I find out thatbpi have thir mutual fund which is offering a minimum of 10,000 . Is it ok to invest to bpi rather than pifa and whats the difference of time deposit and and mutual fund
Hi Tess
A time deposit is a savings account with a higher interest rate. It is a lend investment. You are lending your money to the bank and in return they will give you the agreed upon fixed interest earning based on the set schedule. At present, time deposit interest rates are at 2.5-5% p.a.
A mutual fund is an ownership investment. You buy units of the fund at a certain price and wait until it the price increases over time. You do not know how much you will earn or when you will earn it. You will need to sell the units you own to realize your earnings. Average annual return for the past 20 years has been between 8-20% depending on the fund chosen.
Take note that PIFA is an association of mutual funds both bank and non-bank. BPI’s Mutual Fund – also known as ALFM is a good and legitimate investment option.
For more about mutual funds join us in INVESTability- Mutual Fund Seminar, September 24, from 2 to 5pm. Ateneo Social Development Complex Conference Hall, Ateneo de Manila University, Q.C. Regular Learning Fee 2000. Call 637-3731 or email victor@colaycofoundation.com to avail of early bird rates and group discounts!
what is the difference between mutual fund and index fund which one is better and do we have index fund in the philippines thanks.
Hi Romeo
The goal of a Mutual Fund is to grow the fund by actively managing (buys and sells) stocks or bonds which the fund manager/s deem as profitable.
The goal of an Index Fund is to follow the growth of the stock market (or a specific industry/sector). It has a specific list of stocks it stocks that it buys and sells.
Both are good depending on your investment goals. Mutual funds however especially a balanced/bond fund because it is not 100% invested in stocks provide additional protection in times when the stock market isn’t doing well.
hi..first i would like to thank mr colayco and his team for this wonderful site where we learn how we can be more financially mature. I invested my money on mutual fund… I invested 800k and earned 15k in 7months. Is that a good enough growth? can that yield beat inflation or should I choose another/better mutual fund? I have monitored my mutual fund and not once did it go down… Its increasing by 0.0001 per 1-2 days. by the way, I invested with chinabank’s mutual fund.
Hi Hansley. Whether the growth is good enough would really depend on whether it is meeting your goals or not. As mutual funds are volatile (NAVPS vary per day), it would be best to assess a period of growth (at least a quarter or a year) and not by day. Given the figures you gave, you have earned 1.875% in 7 months. If you would like to check the performance of other mutual funds you can look at http://www.pifa.com.ph [Adm-Guita]