Top Performing Mutual Funds as of 2022

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What factors do you consider before investing in a mutual fund?

When looking at the best-performing mutual funds in the Philippines, there are a few key factors you should consider before investing:

• The fund’s objective and strategy – Make sure that the fund’s investment objective is in line with your own financial goals. For example, if you’re looking for capital appreciation, then you should invest in a fund with that objective.
• The fund’s performance – As mentioned earlier, past performance is not indicative of future results. However, it can give you an idea of how the fund has performed in different market conditions. It is also important to look at the fund’s risk-adjusted return, which takes into account the volatility of the fund’s returns.
• The fund’s fees and expenses – All mutual funds come with fees and expenses, which can eat into your investment returns. Make sure you’re aware of the fees before investing. You can find this information in the fund’s prospectus.
• The fund’s risk level – Different funds have different risk levels. Make sure you’re comfortable with the level of risk before investing. By looking at the fund’s historical performance, you can get an idea of how volatile the fund is.
• The fund’s portfolio holdings – Take a look at the fund’s portfolio to see what sorts of investments it holds. This can give you an idea of the fund’s investment strategy and how diversified it is. Having a diversified portfolio is important in minimizing risk.

These are just a few factors to consider before investing in a mutual fund and just like any other business investment comes with risks. You can either gain or lose but this will only be realized when you sell your investment position.

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First Metro Save and Learn Equity Fund

This fund is ideal for investors who are looking for long-term growth. It invests primarily in stocks of companies with good fundamentals and strong prospects.

Over the years, the fund has consistently outperformed its benchmark, the Philippine Stock Exchange Index (PSEi). It has also received several awards, including the Best Equity Fund in the Philippines for 3 years in a row.

As of Feb 2022, the First Metro Save and Learn Equity Fund had annualized return of 11.76%. The people behind this fund have a proven track record of success, which is why it has never had a down year in its 24-year history.

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Philequity Dividend Yield Fund

Since this fund is designed for long-term investment, it prioritizes high-yielding equities and regular payouts.

As of March 31, 2022, the fund has a total asset of Php 35.4 billion and an annualized return of 23.28% since its inception in December 1994. More importantly, it has never had a down year in its 27-year history.

It is currently the best-performing mutual fund in the Philippines.

The people of the Philippines have always been known for their love of food. So, it’s no surprise that one of the country’s most popular mutual funds is the Philequity Dividend Yield Fund, Inc. This fund invests in the top 30 companies listed on the Philippine Stock Exchange.

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Sun Life Prosperity Dynamic Fund

This fund is perfect for investors with a medium-term investment horizon of 3 to 5 years. It invests in a mix of stocks and bonds which are expected to provide capital appreciation and income.

As of March 31, 2022, the fund has a total asset of Php 28.9 billion and an annualized return of 11.49% since its inception in December 1998. By assessing the fund’s recent performance and track record, we can expect it to be one of the top-performing funds in the Philippines in the coming years.

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Philequity MSCI Philippine Index Fund

This fund is one of the best-performing mutual funds in the Philippines as it seeks to provide long-term capital growth by tracking the MSCI Philippines Index.

The fund was established in 2003 and has a track record of delivering impressive returns over the years, with an annualized return of 9.43% as of Feb 2022 as well as one of the most popular mutual funds in the country, with over PHP 20 billion in assets under management.

Well diversified across different sectors of the economy with top holdings in BDO Unibank, Inc., Ayala Corporation, and SM Prime Holdings, Inc. Gained much popularity due to its low expense ratio as well as its consistent performance.

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First Metro Phil. Equity Exchange Traded Fund

The fund’s objective is to track the performance of the Philippine Stock Exchange Composite Index (PSEi). It invests in a diversified portfolio of stocks that are selected based on their inclusion in the PSEi.

As of Feb 2022, the fund’s top holdings include BDO Unibank, Inc., Ayala Corporation, SM Investments Corporation, and Metropolitan Bank & Trust Company. The fund had a return of 8.99% as of Feb 2022.

It is suitable for investors who are looking for capital appreciation and are willing to take on higher risks. But it is worth noting that the fund’s performance is closely linked to the Philippine stock market, which can be volatile.

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First Metro Save and Learn F.O.C.U.S. Dynamic Fund

This fund was established in 2001 and has a current asset value of Php 5.37 billion. The fund’s objective is to provide capital appreciation and income generation through investments in fixed-income securities, equities, and money market instruments.

The fund has annualized return of 9.58% as of Feb 2022. It is one of the best-performing mutual funds in the Philippines as of 2022. But it is important to note that this fund is not suitable for short-term investments as it is a long-term investment fund.

The fund’s top holdings include government securities, corporate bonds, and blue chip stocks. 

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ATRAM Alpha Opportunity Fund

ATRAM Alpha Opportunity Fund, Inc. is a mutual fund that invests in companies with good growth potential. The fund is managed by ATRAM Trust Corporation. The fund has a track record of delivering strong returns over the years.

In the past five years, it has given an annualized return of 23.04%. This makes it one of the best-performing mutual funds in the Philippines. More importantly, the fund has low volatility, which makes it a good option for investors who are looking for stability in their investment portfolio.

The Philippines are blessed with a wide range of investment opportunities and ATRAM Alpha Opportunity Fund, Inc. is one of the best-performing mutual funds in the country as of 2022.

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Philequity Fund

This fund allows Filipino investors to put their money into various types of Philippine stocks. The Fund’s objective is to achieve long-term capital growth.

The Philequity Fund invests primarily in a diversified portfolio of Philippine stocks with strong fundamentals and earning potential.

Potentially undervalued stocks are also bought when there is an opportunity. It has annualized returns of 10.37% as of Feb 2022.

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Sun Life Prosperity Philippine Equity Fund

The Sun Life Philippine Equity Fund, Inc. is a mutual fund established in the Philippines. The Fund’s objective is to provide long-term capital appreciation.

The Fund invests primarily in a diversified portfolio of equity securities of companies with solid fundamentals and earning power, as well as good growth prospects.

The fund has yielded an annualized return of 8.94% as of Feb 2022. It is one of the best-performing funds in the Philippines, with public funds ranking second and third, respectively.

It has a low potential for capital appreciation in the long term as its strategy is focused on dividend-paying stocks.

So, these are the top best-performing mutual funds in the Philippines as of August 2022. Do remember that past performance is not necessarily indicative of future results.

Read More: Guide to Investing in the Stock Market 2022

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Conclusion

From the above context, it can be said that there are various best-performing mutual funds available in the Philippines. An investor must consider various factors before investing in any fund.

Some of the key factors are explained above. To reduce investment risk, it’s critical to conduct your own study and seek expert advice before making any decisions. Perfecting your investment strategy takes time, so don’t rush into anything.

Start small and gradually increase your exposure to different types of investments as you gain more experience. With patience and discipline, you will be on your way to achieving your financial goals.