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.