Investing in mutual funds offers Filipino investors a hassle-free way to diversify their portfolios while targeting long-term growth. Whether you’re saving for retirement, building your child’s education fund, or aiming to grow your wealth, mutual funds are an excellent vehicle for doing so without directly engaging in stock trading.
But with so many options, how do you pick the best one for long-term financial success?
Here, we explore the Top 5 mutual funds in the Philippines that have shown solid potential for long-term growth and can be a great addition to your financial strategy.
1. Philequity Fund, Inc.
Known as one of the top-performing mutual funds in the Philippines, Philequity Fund, Inc. is a longtime favorite among local investors. This fund focuses primarily on equities, investing in blue-chip stocks like SM Investments and Ayala Corporation, which are known for their stability and strong growth prospects.
With over two decades of strong performance, the Philequity Fund is designed for investors looking for long-term capital appreciation. This fund is ideal if you’re willing to ride out market volatility for the potential of high returns.
2. Sun Life Prosperity Philippine Equity Fund
Managed by Sun Life Asset Management, the Sun Life Prosperity Philippine Equity Fund is one of the most popular equity funds in the country. It primarily invests in large-cap stocks on the Philippine Stock Exchange, making it a great choice for investors who believe in the long-term growth of the local market.
With a solid track record and the backing of a well-established financial institution, this fund offers professional management and diversified exposure to the Philippine economy’s strongest companies.
3. ATRAM Philippine Equity Opportunity Fund
If you’re looking for a fund that targets growth stocks with strong future potential, the ATRAM Philippine Equity Opportunity Fund is an excellent option. Managed by one of the top investment houses in the country, this fund focuses on investing in companies poised for growth across various sectors such as consumer goods, banking, and infrastructure.
The ATRAM Philippine Equity Opportunity Fund allows investors to gain exposure to highpotential stocks, making it suitable for those with a higher risk tolerance and a long-term investment horizon.
4. First Metro Save and Learn Equity Fund
The First Metro Save and Learn Equity Fund (SALEF) is managed by First Metro Asset Management, Inc. (FAMI) and focuses on investing in equities of blue chip companies listed on the Philippine Stock Exchange. This fund is ideal for those looking for capital appreciation and who are willing to hold their investment over the long term to ride out market fluctuations.
FAMI’s focus on value stocks makes SALEF an excellent option for conservative investors who want to grow their wealth steadily without taking on too much risk.
5. Philam Strategic Growth Fund
Managed by Philam Asset Management, Inc., the Philam Strategic Growth Fund is an actively managed equity fund that focuses on a balanced portfolio of blue chip stocks and other high-growth opportunities in the Philippine market. This fund aims for long-term capital appreciation by selecting companies with strong fundamentals and growth prospects.
If you’re looking for a well-rounded equity fund backed by one of the most trusted names in Philippine finance, the Philam Strategic Growth Fund is a solid choice for investors focused on the long-term growth of their investments.
Why Mutual Funds Are a Great Choice for LongTerm Growth
For Filipinos looking to build wealth over the long term, mutual funds offer a wide range of benefits:
1. Diversification
Mutual funds allow you to invest in a broad portfolio of stocks, bonds, or other securities, helping to spread risk and improve potential returns.
2. Professional Management
You don’t have to worry about picking the right stocks or bonds. Expert fund managers handle the investment decisions, offering peace of mind that your money is in capable hands.
3. Affordability
You don’t need a large capital to start investing in mutual funds. Many funds in the Philippines have low minimum investment requirements, making them accessible to a wide range of investors.
4. Liquidity
Mutual funds are highly liquid, meaning you can redeem your shares at any time. This provides flexibility, especially when you need access to your money in emergencies.
How to Participate or Buy Into These Funds
Investing in mutual funds in the Philippines is relatively simple and accessible, with the minimum initial investment typically starting at ₱5,000. Here’s how you can participate in or buy these mutual funds:
Philequity Fund, Inc.
How to Invest: You can invest directly through Philequity Management, Inc. by opening an account with them. Visit their website or office to submit the required documents. They also offer online investment options for easier access.
Sun Life Prosperity Philippine Equity Fund
How to Invest: You can invest through Sun Life Asset Management Company, Inc. (SLAMCI). You can open an account through their website, mobile app, or by visiting one of their offices. Sun Life advisors can also help you navigate the process.
ATRAM Philippine Equity Opportunity Fund
How to Invest: You can invest through ATRAM’s website or partner platforms such as COL Financial or Seedbox. ATRAM offers a fully online process for account setup and investment management.
First Metro Save and Learn Equity Fund (SALEF)
How to Invest: You can invest through First Metro Asset Management, Inc. (FAMI). Their funds are available through FAMI’s website, accredited banks, and broker platforms such as COL Financial.
Philam Strategic Growth Fund
How to Invest: Managed by Philam Asset Management, Inc. (PAMI), you can invest in this fund by visiting their offices or their website to submit your application. You can also invest through authorized distributors or partner banks.
Before investing, ensure that you are fully aware of the fund’s objectives, risk profile, and associated fees. Most fund managers provide prospectuses and fact sheets to help you make informed decisions.
Final Thoughts
Mutual funds provide Filipino investors with a great way to diversify and grow their wealth over the long term. Whether you’re a conservative investor looking for steady returns or an aggressive investor seeking high-growth opportunities, these mutual funds offer a range of options to meet your needs.
Remember, the key to success with mutual funds is patience and consistency. Stay committed to your financial goals and let these funds work for you over time.
