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Exploring the country’s leading mutual funds

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Mutual funds are a good investment starter for those with limited knowledge on making their money grow. They give investors a great way to access a professionally managed group of assets at a relatively low price. However, choosing the best mutual fund on where to invest is a daunting process, given all the factors that need to be considered to meet certain investment goals.

For most investors, one of the most appealing metrics is the performance of a mutual fund by its rate of return. Choosing funds that provide the highest possible returns is ideal for investors who want to quickly grow their money. Here are some of the top mutual funds in the Philippines that have posted the highest returns in the first nine months of the year based on the data provided in the Philippine Investment Funds Association’s Web site.

During the given period, ATRAM Alpha Opportunity Fund performed best with a one-year return of 12.44%. This fund, according to its Web site, is an equity fund invested primarily in small to middle capitalized equity securities, with a focus on companies with strong growth potentials. It is suitable for investors pursuing a growth strategy and who have a medium- to long-term investment horizon.

Philam Bond Fund and Philam Dollar Bond Fund come next with a one-year return of 11.34% and 11.05%, respectively. The former is a bond fund for conservative investors seeking to park their surplus cash and earn from peso-denominated fixed-income securities, while the latter is a bond fund for conservative risk investors who want to invest in a dollar fund and benefit from the movements of United States (US) dollar-denominated fixed-income securities in the Philippines and the US.

In the fourth spot is Cocolife Dollar Fund Builder with a one-year return of 9.71%. According to its Web site, it is a growth and income-oriented mutual fund which aims to provide investors with long-term capital appreciation. This fund is an ideal investment for investors looking for attractive returns for their dollar funds.

After recording a 9.48% one-year return in the given period, Sun Life of Canada Prosperity Bond Fund placed fifth on the list. This fund enables investors to potentially earn modest returns from their investments. It is invested in high quality government and corporate debt issued by the Philippine government and prime Philippine companies.

Following Sun Life Prosperity Bond Fund are Sun Life Prosperity Dollar Abundance Fund and Sun Life Prosperity GS (Government Securities) Fund with a one-year return of 9.32% and 9.2%, respectively. The former is a bond fund giving Filipinos the opportunity to take advantage of the international markets; while the latter is a bond fund invested in domestic fixed income instruments issued by the Republic of the Philippines, which are defined as unconditional obligations of the state and backed by a sovereign guarantee.

With a one-year return of 8.53%, Soldivo Strategic Growth Fund is also in the list of top-performing mutual funds in the country.  The fund, according to its Web site, gives investors the access to capitalize on the immense growth opportunities of the Philippine equity market which usually requires expertise and vast resources to succeed in. It is considered a moderate-to-high risk type of fund with a primary objective to deliver capital growth.

Joining the list with a recorded 8.48% one-year return is PAMI Horizon Fund. According to its Web site, this mutual fund is for moderate investors who have carefully assessed the risks involved associated with the Philippine stock market and want to balance their portfolio by investing a portion in bonds.

Completing the list of top 10 mutual funds with the highest returns from January to end of September this year is Philam Fund that posted 8.3% one-year return. This mutual fund is ideal for moderate investors who want a balanced peso-denominated portfolio that helps manage and reduce risks associated with the stock market.

Meanwhile, it is also worthy to consider investing in First Metro Phil. Equity Exchange Traded Fund (FMETF) with 7.68% one-year return in the said period, following Philam Fund. As of Oct. 17 of this year, the said fund recorded the second highest one-year return of 14.11%.

FMETF is the first-ever exchange-traded fund in the country that aims to provide returns which would reflect the performance of the Philippine equities market by investing in a basket of securities which are included in the Philippine Stock Exchange index (PSEi). — Mark Louis F. Ferrolino

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