The best performing Mutual Funds in the last 3 years

By Randell Tiongson on June 27th, 2012

There are dozens of Mutual Funds available in the country and it can be confusing to chose from them. It’s a good thing that the Philippine Investment Funds Association (PIFA) lists the performances of their member companies.

Mutual Funds are great investment instruments for people who are looking for better returns. Mutual funds are long term instruments and are marked to market funds so volatility is to be expected when investing in the said funds. Further, Mutual Funds are not guaranteed. However, performance of the Mutual Funds are expected to outperform inflation rates in the long run, or at least in theory.

I’ve compiled the performances of the top 5 Mutual Funds using their 3 year return parameters. When investing in a Mutual Funds, there are many things to consider other than performance. I’d pay close attention to fee structures as one company differs from another. Other concerns should be investment track record, experience of fund manager, shareholder servicing, among others. In my experience, after sales servicing is a big must and not all Mutual Fund providers give the same effort in servicing.

Be careful on just looking at yields. Aggressive fund managers will have better performance during a bullish market but will have also have performed worse during a down turn.

Investing in a Mutual Fund is a good idea for long-term investors as one can benefit from professional fund management & diversification. Minimum investment amounts for Mutual Funds are also a big plus as most funds only require P5,000 minimum placements.

The Securities & Exchange Commission (SEC) is the government regulatory body that oversees Mutual Fund Companies.

Returns are Compounded Annual Growth Rates (CAGR), those are annual returns.

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30 thoughts on “The best performing Mutual Funds in the last 3 years”

  • Thanks for this. I better pull out my investment (balanced fund) from another company and transfer to First Metro! Will do this as soon as possible. Haha! πŸ™‚

  • Please also note that these are gross returns. Deducting the Sales charge will produce different results. For instance, Philam Strategic Growth Fund charges 5.6% upon placement. Philequity charges 3.5%, First Metro SALEF charges 2%. Other funds have the option to have no charges.

    Just my 2 cents.

  • This is a timely read. I’m now choosing between continuing with FAMI or adding another mutual fund in PAMI, both claiming to be No.1

    I’m confused on how to compare both. FAMI has smaller entry fees but they have 1.75% admin fee that they already deducted from the NAV while PAMI has higher entry fees but no admin fees. Are the listed percentage returns net of their charges already?

    Would share this link.

  • I’d like to reiterate that performance should not be your sole criteria. I would pay close attention to fee structures; entry, exit fees, investment management fees, etc. Another issue to look at is customer service. My 2 cents.

  • Thanks for the insight. I hope you could share to your followers the top performing UITF in the country as well. hoping to read soon!

  • My 2 cents worth folks:
    You have to take a close look at the composition of so-called “balanced” and “bond” funds.

    Some balanced funds may appear to have a higher rate of return just because they allocate a greater portion of their investments to equities; or higher corporate bonds than ROPs for bond funds.

    Some examples for “Balanced” Funds:
    Company A: 30% equities, 60% bonds, 10% cash/money market
    Company S: 60% equities, 40% bonds
    Company P: 75% equities, 25% bonds
    ad infinitum…..

    Examples for “Bond” Funds:
    Company A: 80% ROPs, 20% corporates
    Company U: mostly corporates (approaches “junk” level)
    Company P: 60% ROPs; 40% corporates
    etc…..

    Hope this helps. Have a great day!

  • Hi Randy,

    It would help for a novice like me to know which company has the best customer service.

    Is mutual fund better than uitf?

    I found out that some banks are offering both.

    Thank you for sharing.

  • I don’t have first hand experience in all mutual fund companies for me to say who is the best in customer service. Mutual Fund and UITFs are in essence the same, differs in who is managing them. Mutual funds are handled by mutual fund companies while UITFs are handled by the Trust Departments of Banks.

  • Though I am honest to say that I’m still learning to invest on mutual funds, hence giving me a bit of trouble understanding the figures, I can attest that this information is valuable. Thanks very much for sharing this sir. This is something I could refer to when I start investing. πŸ™‚ God Bless!

    JeD Chan

  • From my personal observation and as an MF investor for more than 3 years now, as long as you keep your funds in the Top 3 MF listed in pifa.com.ph, you will be fine.

    My choice,though, from all of these MF companies is FAMI because of the ff.
    – their sales load are regressive in nature, the fund entry fees are low (2%) and tends to become lower faster (1.5%, 1%) as I accommulate more investments
    – they have an FB page to post your inquiry and they update their fund sheet regularly there. Good points for customer care interaction
    – my strategy fits the investment philosophy of the fund manager, to stay invested in the Phils in the long term.

    Since i have been satisfied with the returns of my investment there (money working hard for me.. without me doing anything except INVEST regularly).. moving to other competing MFs or UITFs is not yet on my radar kahit me mas better performer than FAMI , in the near future.

    Tutal sabi naman ng Money Expo study, only less than 1% of Pinoys are investing in equity/MFs like me.. I feel blessed already by the Lord, for being part of the 1% than the 99% when it comes to looking at my personal finances.

    Tulungan na lang natin i-educate yung mga kabayans natin to participate in the Investing World using Mutual Funds..

  • Dear Mr. Pinoy Investing,

    VULs are good life insurance products. They can’t be compared to Mutual Funds as they are not the same. To simplify, a VUL is like a term life insurance with a mutual fund component. Since it gives life insurance benefit, part of the premium you pay for a VUL goes to a pay insurance and therefore is not invested. From a purely investment perspective, a mutual fund will do better than a VUL… but then again, a VUL is an insurance product. The advantage of a VUL over Mutuals will be on the uncertainties of life like untimely death and health issues. My 2 cents.

  • hi Randell,

    Thanks for the VUL and MF insight. I already have my own stock portfolio and opening a VUL. (I was only interested with the company’s MF but the advisor offered me the VUL for the insurance advantage).

    I’d really like to invest on a company focused on MF so they can maximize the money I’m going to invest with them through equity bonds, high risk but high return. Do you think this is a good move or should I just divide my extras to my existing stocks and the tops on my VUL?

  • Hi Randell,

    I am interested to learn how can I invest. I have tuned in to the “Perfect Morning” show and heard you are talking about investment. I would like to learn the basics and hopefully, with God’s grace, will have my investment on going in the near future.

    I would appreciate if you can recommend any websites or books to read. I am now reading Chinkee’s books and I am learning a lot. Now, I would like to explore and get into the investment world.

    Thanks in advance! Godbless.
    Jerome

  • Hi Jerome,

    You might want to attend my investments aeminar this August. Details out soon.

  • Hi! This is one interesting read. Although I have no experience in MF, I’d like to try it out. I’ll just start small and see how things work out.

    Any Ideas to which company I go?

  • Hi Sir Randell,

    i just read in your estate planning blog that VUL is not subject for garnishment from creditors, may I know the insurance code or law that states this matter.thank you.

  • Hi I’m a newbie here, Im interested in investing in mutual funds, which one is the best and can somebody enlighten me about this? Thank u

  • I have some understanding when it comes to the different branches under MF( ex: bond or equity, etc…) but I have been confused in terms of the minute details on how these are run, specially the structures of each.

  • Good read, just when the PSEI passed 6,000!

    I’m a newbie investor and just reading through all the investment options and companies is giving me quite a headache, so thanks for the useful info here.

    Looking forward to more!

  • Hi Mr. Randell,

    what is FAMI? I want to start investing this year. I’m an OFW.
    Hope you can help me.

    Regards

  • as for me, i’m biased with Phil. Stock Index Fund on Equity Funds. i don’t know if for the next 20 years or so these ACTIVE fund managers(ex. FAMI, Philequity, Philam, etc) will outperform the Index.

  • I am retired, am looking for 5 to 10 funds that are great in both up and down markets. I don’t want to loose a lot of money.

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The best performing Mutual Funds in the last 3 years