I sometimes visit Philippine personal finance forums and beginners usually ask where should they invest their money. Most people would suggest mutual funds, and if the newbie investor is willing to put in the time to study, individual company stocks/equities. After someone suggests investing in funds, the usual question after that is which specific fund should they choose. That is why I decided to compile the financial companies with mutual fund (including ETF and UITF) offerings on this article.
Here’s a short and still incomplete list of mutual funds in the Philippines. If I forgot some, please don’t hesitate to tell me. As for whichever one of these funds are right for you, that will depend on your investment objectives, risk tolerance, age and income, and more.
- High Risk, High Potential Returns: Equity funds or funds that invest mostly in stocks. This is better for younger people who wish to maximize their potential earnings.
- Medium Risk and Potential Returns: Balanced funds that invest in stocks as well as fixed income securities (bonds), cash, money market, etc.
- Low Risk and Low Potential Returns: Bond or Fixed Income Funds. These and the money market funds below are recommended for older people who need more stability in their investment portfolio.
- Lowest Risk, Lowest Potential Returns: Money Market Funds
Note: Remember to read the fund objectives and prospectus. Some funds have unusual investing strategies and other details you might need to be aware of.