Philippine Stock Index Fund | ALFM Mutual Funds (2024)

FAQs

Is the Philippine stock index fund a good investment? ›

The fund is suitable for investors who: • Are at least classified as aggressive based on their risk profile. • have an investment horizon of up at least five (5) years. Market Review. The Philippine Stock Exchange Index (PSEi) got off to a hot start in 2024.

As of February 2024, the Sun Life Prosperity Philippine Equity Fund, Inc. was the leading mutual fund company in the Philippines, with a year-to-date (YTD) growth rate of about 4.42 percent. First Metro Phil. Equity Exchange Traded Fund, Inc.

The Philippine Stock Index Fund is a long-term investment outlet that allows you to diversify your money in a mix of domestic stocks. The Fund aims to mirror the performance of the Philippine Stock Exchange Index (PSEi).

It's difficult to say the exact amount you should invest in the stock market because everyone's finances are different. However, it's recommended to invest a percentage of your income each month. If you can save 15-20% or more of your income, that's a great start.

In 2024, banking giant Bank of the Philippine Islands (BPI) got the most awards, with three of its equity funds being recognized. In last year's ranking, BPI's Odyssey Diversified Balanced Fund was also recognized as one of the best managed funds in 2023.

In the Philippines, mutual funds can be categorized into four basic types: stock/equity, balanced, bond, and money market funds.

Beating the largest fund houses in the Philippines, BPI Trust brought home its sixth trophy as the Best Overall Asset & Fund Manager in the Philippines.

The PSEi is the main index of the Exchange. It is composed of the 30 largest and most active common stocks listed at the PSE.

What is the difference between index funds and mutual funds? ›

Generally speaking, though, “index fund” refers to a fund whose investments closely track a market index, while “mutual fund” refers to a broad class of investment funds that follow a range of investing strategies.

The BPI Philippine Equity Index Fund provides aggressive investors with investment returns that track the performance of the Philippine Stock Exchange Composite Index (PSEi) by substantially investing in stocks comprising the PSEi and in the same weights as in the index.

If the average dividend yield of your portfolio is 4%, you'd need a substantial investment to generate $3,000 per month. To be precise, you'd need an investment of $900,000. This is calculated as follows: $3,000 X 12 months = $36,000 per year.

The Philippine stock market has historically provided higher potential returns over the long term than compared with traditional savings accounts. Although these returns are not guaranteed and stocks can be volatile, well-managed company shares tend to follow the overall growth of the economy's overall growth.

Investments are most welcome in the Philippines. There are only certain areas of economic activity where foreign ownership restrictions apply. Philippine laws and regulations guarantee the basic rights of all investors and enterprises, including the following: Freedom from expropriation without just compensation.

Historical performance: Over the long term, many index funds have outperformed actively managed funds, especially after accounting for fees and expenses.2. Tax efficiency: Lower turnover rates in index funds usually result in fewer capital gains distributions, making them more tax-efficient than actively managed funds.

PSEi. The PSEi is the main index of the Exchange. It is composed of the 30 largest and most active common stocks listed at the PSE.