Top 10 Mutual Funds Companies to Invest in the Philippines

If you want to grow your money, mutual funds investing would be a good choice. Mutual funds investing in the Philippines are gaining more and more popularity thanks to its benefit of growing your money better than regular checking or savings account do from banks.

Are mutual funds the right investment vehicle for you?

You might be wondering if mutual funds are good for you, especially if you’re just beginning to invest your money. Don’t worry. This guide will not just walk you through the basics of mutual funds, you’ll also gain a few helpful insights on the best mutual fund investments you can find in the Philippines to grow your money this year.

Read on to know what mutual funds are, how it works as an investment vehicle and what profits you might gain over time.

Ready? Here we go.

What is a mutual fund?

To cover the basics, let’s talk first about mutual fund investing and how it works. To put it in layman’s term, mutual funds work similarly to unit investment trust funds (UITFs). A group of investors would pool their funds together to come up with a large capital and a professional fund manager will then invest the mutual fund in assets like stocks, bonds, or any other money market instruments.

Unlike UITFs, which are handled by banks and regulated by the Bangko Sentral ng Pilipinas (BSP), mutual funds in the Philippines are managed by brokerage companies and insurance providers and are regulated by The Securities and Exchange Commission (SEC).

Different types of mutual funds

There are many types of mutual funds in the Philippines that you can invest on to grow your money. As an investor, you have the choice to put your money in just one type of mutual fund or combine it with others to grow your money faster. Each type of mutual fund serves a specific investment goal and differs in time frame, how much money you can risk at the time of investment (are you a conservative investor or a risk taker?) and the choice of money instrument.

Here are the four (4) major types of mutual funds you can choose from:

Money market funds

Best for the low-risk investors, money market funds is the mutual fund option in the Philippines that allow you to earn a higher profit as compared to time deposits or regular savings or checking bank accounts.

Most of the time, fund managers would invest the mutual funds in short-term money market securities that are risk-free like government treasury bills, time, deposits and corporate bonds. Investors who choose this type of mutual fund also have a short investment maturity of just 1 year or less to wait before they receive profits from their investments.

Here’s the top 3 Money Market Fund Companies with a 1-year return:

  1. ALFM Money Market Fund, Inc. with 3.09%
  2. Sun Life Prosperity Money Market Fund, Inc. with 2.76%
  3. Philam Managed Income Fund, Inc. with 1.96%


If you’re one of those investors who are conservative or you can only manage to go for a moderate risk investment, investing in a bond fund is the best for you. Bond funds earn higher profits compared to time deposits and you have the assurance of protecting your investment against inflation.

A bond usually takes 1 to 3 years to mature and is best if you want to preserve your capital investment while earning a decent profit out of it. Some examples of bond funds are long-term securities like corporate and government bonds, Philippine treasury notes, and fixed-income investments.

Here’s the top 3 Bond Fund Companies with a 3-year return:

  1. Cocolife Fixed Income Fund, Inc. with 5.4%
  2. ALFM Dollar Bond Fund, Inc. with 2.29%
  3. ALFM Peso Bond Fund, Inc. with 2.15%

Equity funds

Equity funds are very much ideal for high-risk investors especially those who already have an experience with stock market investing. Equity funds are invested in stock shares from the Philippine Stock Exchange (PSE) and have a longer investment maturity of 5 years and above.

This type of mutual fund investment is mostly suited for people who aim for a long-term capital growth. Aggressive investors, like young professionals and businessmen, consider equity fund as a good way to grow their investments over time in a much more lucrative manner than bond funds do.

Here’s the top 3 Equity Fund Companies with a 5-year return:

  1. ALFM Growth Fund, Inc. with 3.56%
  2. ATRAM Alpha Opportunity Fund, Inc. with 3.5%
  3. Philippine Stock Index Fund Corp. with 5.43%

Balanced Funds

Another mutual fund option for conservatives and moderate risk investors are balanced funds. This type of investment is a mix of investing in stocks and equity funds for a higher profit growth.  The investment maturity for balanced funds is also longer than bond funds, which takes about 3 to 5 years.

Here’s the top 3 Balanced Fund Companies with a 5-year return:

  1. NCM Mutual Fund of the Phils., Inc. with 2.44%
  2. Solidaritas Fund, Inc. with 3.38%
  3. Sun Life of Canada Prosperity Balanced Fund, Inc. with 2.38%

Should you invest in mutual funds right now?

If it’s your first time to invest your money and you don’t know how to do it, investing in mutual funds in the Philippines is the way to do it. Here are several reasons why mutual fund investing is for you:

  • It’s convenient.

With mutual fund investing, you have the choice to invest your money with regards to your financial goal, your level of tolerable risk, and your capacity to wait for your investment to mature.

  • It’s professionally managed.

Admit it, investing your money requires skill and careful thinking. Since mutual funds are managed by a professional fund manager, you won’t have to think of how to invest your money or study how you must do investing properly. Let your fund manager do that for you.

  • It’s budget friendly.

Most people dread the idea of investing in the Philippines because of the lucrative sum of money they’d need to invest. With mutual funds, big money is not a problem. In fact, you can have a mutual fund for 5,000php and pay 1,000php for your succeeding investment. This makes mutual fund budget friendly to all who don’t have much money to invest but would like to invest anyway.

  • Mutual funds have high liquidity.

Mutual funds are highly liquid which means you can choose to buy or sell your shares within a day without any problem.

  • It’s safe and a low-risk form of investment

Overall, mutual funds are very safe for beginner investors because it’s regulated by the SEC ensuring that your every investment is protected. Not only that, mutual funds can be invested in a variety of assets to minimize profit or investment loss in the long run.

Where do I find a good mutual fund investment company?

There are many investment companies in the Philippines offering mutual funds. To make your search quick, go straight to the website of SEC and find the licensed mutual fund companies that you can invest with.

You can also find the list of the top performing mutual fund companies in SEC by looking at their Net Asset Value Per Share (NAVPS) and their rate of returns in a year. This way, you’ll be able to compare if you’ll be able to grow your invested money well in the mutual fund company of your choice in the Philippines. You may also check the industry association of mutual fund companies in the Philippines, Philippine Funds Association (PIFA) for the up-to-date NAVPS data of mutual fund investment companies.

So far, the top 10 list of mutual fund companies in the Philippines to invest in as of January 2019 are the following with their respective returns annually:

1. Cocolife Fixed Income Fund, Inc

Mutual fund type: Bonds

Annual return: 5.49%

2. MBG Equity Investment Fund, Inc

Mutual fund type: Stocks

Annual return: 3.45%

3. ALFM Money Market Fund, Inc

Mutual fund type: Money Market

Annual return: 3.09%

4. Sun Life Prosperity Money Fund, Inc

Mutual fund type: Money Market

Annual return: 2.76%

5. ALFM Peso Bond Fund, Inc

Mutual fund type: Bonds

Annual return: 2.04%

6. Philam Managed Income Fund, Inc

Mutual fund type: Money Market

Annual return: 1.96%

7. Sun Life Prosperity Dollar Starter Fund, Inc.

Mutual fund type: Money Market

Annual return: 1.83%

8. Philequity Peso Bond Fund, Inc.

Mutual fund type: Bonds

Annual return: 1.63%

9. Ekklesia Mutual Fund, Inc

Mutual fund type: Bonds

Annual return: 1.53%

10. ALFM Dollar Bond Fund, Inc

Mutual fund type: Stocks

Annual return: 0.9%

Earlier, we also broke down the top 3 mutual fund companies for each fund type in the Philippines to invest this 2019 in case you’re eyeing a particular mutual fund type to invest in.

How to start investing in mutual funds in the Philippines

Investing in mutual funds is fairly easy to do in the Philippines thanks to its simple process.

Once you’ve chosen a mutual fund company, you can go to the website to register. If you’re unsure yet about the type of mutual fund you’d like to invest in, you might be required to talk to a sales agent or answer a few questions to determine your risk profile to help you make your initial investment.

Once you’re done with this, you can now proceed to the registration. Once successful, you need to download the necessary forms and other documents required by the mutual fund company, submit it to their office or send it via courier service.

Once your account has been confirmed, you can now fund your account and continue making investments.

When it comes to investing your money, choosing mutual funds over keeping it in the bank is the much better choice. With mutual funds, it’s okay if you have little or no investment experience at all thanks to professional fund managers. Just remember to keep your risk level and financial goal in mind when investing in a mutual fund to give you the best profit and capital growth as your investment matures.

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