Which Are the Best Mutual Funds in the Philippines?

There are several types of mutual funds presentinterest-earning to being mark-to-market. In
in the Philippines. We need to know the featuressimple terms, bonds funds now also experience
of each type in order to know which of them suitfluctuations but it is only very minimal and nothing
our needs and our personalities. There are fourcompared with the fluctuations being experienced
fundamental types of mutual funds, namely, theby stock funds. In the Philippines, bond fund is the
stock, the balanced, the bond, and the moneymost popular type of mutual funds since most
market. Let's tackle the first three types andFilipinos are very conservative investors. The best
enumerate the best of it present in the Philippines.mutual funds under this classification include
Another term for stock funds is equity funds.Prudentialife Fixed Income, Cocolife Fixed Income,
From the term itself, this is consisted ofSun Life Prosperity GS, Sun Life Prosperity Bond,
investments of clients placed in pure equities orPhilam Bond, ALFM Peso Bond, First Metro Save
stocks. It is like investing indirectly in the stockand Learn Fixed Income, Philequity Peso Bond,
market. Instead of monitoring the stock marketDWS Deutsche Philippine Fixed Income, and
on a daily basis, there is an asset managementEkklesia Mutual.
company or a fund manager managing it for theAn investor who is conservative but wants to try
clients. Investing in stock funds is very risky sincean aggressive type of mutual fund may want to
the performance of the stock market is verytry the balanced fund. With the balanced fund, an
volatile. However, there is a truth in the sayinginvestor can have the best of both worlds. Fifty
that "the higher the risk, the higher the return." Inpercent of the funds in a balanced fund are
most cases, those who invest in stocks are longinvested in the stock market and the other half is
time investors who have been very experiencedinvested in stocks. In other words, if the stock
in making long-term placements. In the Philippines,market is up, then investors of the balanced fund
the best mutual funds under this classificationare expected to earn high too. At the same time,
include Philequity, Philequity PSE Index, First Metroif the performance of the bonds is positive, then
Save and Learn Equity, Philippine Stock Index,investors of the balanced fund are expected to
Philam Strategic Growth, United, Sun Lifeearn high too. In simpler terms, the performance
Prosperity Phil. Equity, ATR KimEng Equityof the balanced fund is greatly affected by the
Opportunity, and DWS Deutsche Philippine Equity.performances of the stock market and the bond
Bond fund is another type. If a stock fund is amarket. The best mutual funds under the
very risky financial vehicle, bond fund is thebalanced fund category include ALFM Growth,
opposite of it. Instead of having the fundsFirst Metro Save and Learn Balanced, Inc., Philam,
invested in stocks, investments of bond fundInc., GSIS Mutual, Inc., MFCP Kabuhayan, Optima
clients are invested in such vehicles as corporateBalanced, Sun Life Prosperity Balanced, and First
bonds, Treasury Notes, Treasury Bonds, AgencyGalleon Family.
Bonds, obligation bonds, and revenue bonds. WhenIt is true that the type of mutual fund that we
bond funds were first introduced in the Philippines,will invest in also has to depend on the type of
many conservative investors made placementspersonality that we have. If we are aggressive, it
as this used to be an interest-earning vehicle.is ideal to invest in stock funds. If we are
However, there have been changes in the rulingsconservative, bond funds are the best one for us.
of the Securities and Exchange Commission thatIf we want to have the best of both worlds, then
changed such financial vehicle from beingplacing in balanced funds is highly recommended.