Types of Mutual Funds in the Philippines

The following are the different types of Mutual Funds in the Philippines. Before you make a mutual fund investment or before you open an account, you must first know the classifications of mutual funds offered in the country.

Types of Mutual Funds in the Philippines

The most common types of Mutual Funds available in the Philippines are the following.

  • Money Market Funds – are invested in a diversified portfolio of short-term fixed income and money market instruments. Money Market Funds are suitable for conservative investors who are looking for higher returns than regular savings and time deposits.
  • Bond Funds – are invested in a diversified portfolio of medium to long-term fixed-income instruments like government securities, corporate notes and bonds and fixed income funds. These funds are suitable for moderate risk-taking investors who are looking for higher returns.
  • Balanced Funds – are invested in a diversified portfolio of equity securities and fixed-income instruments. Balanced funds are suitable for those investors who are in between conservative and aggressive are who are looking for more profit in spite of risks.
  • Equity Funds – are invested in a diversified portfolio of premium stocks or equity securities. These are suitable for aggressive investors who want to maximize earnings for a long term and understand the risks of the stock market.
  • PSE Index Fund – is another type of equity fund invested in a diversified portfolio of stocks in the PSEI, usually in the same weights as in the index. These funds are suitable for those aggressive investors who want to maximize earnings for long term and who want to track the performance of the PSEI.

Notice that the higher the risk, the higher the earning potential.

Types of Mutual Funds Suitable for Time, Risks and Goal

Every investor must consider his time (investment horizon), risk tolerance and objective to decide well about his investments.

We’ve summarized the types of mutual fund recommended according to investment horizon, risk appetite and goal. Check the mutual fund infographic we made here:

types of mutual funds in the philippines

As always, the final decision will be from you, the investor. All investments have risks.

Learn more about Mutual Funds here: Mutual Funds Tips and Guides

About Fehl Dungo

Founder of DailyPik, trusted fund manager and investor. I have a Degree in Accountancy and a background in Finance. I analyze stocks everyday. COPY my Portfolio on eToro Connect with me on Facebook

28 thoughts on “Types of Mutual Funds in the Philippines”

  1. Hi Ms. Fehl.. kanino at saan po ba ako pwedeng magpatulong sa pag open ng equity fund po? Gusto ko po sanang mag invest. Thanks po in advance.

    Reply
  2. Hi Ms. Fehl, which would you recommend for a beginner who wants to invest for long term? Will it be in EIP of COL Financial or MF of PhilEquity Fund? Thank you and hoping for your best response here.

    Reply
    • Depends on the status of the beginner. If you can afford both, I’d say choose some blue chips and Philequity. Philequity is doing great by the way although their strategy is very aggressive

      Reply
  3. Hi Ms. Fehl! I’m planning to have an additional investment but wondering if when is the right time po to invest in mutual funds?

    Reply
    • Equity Funds have the highest risks but they give the highest earnings compared to other Mutual Funds. Equity Funds are suited for 5 years or so

      Reply
  4. Ms. Fehl good day po. thank you for sharing your thoughts about Mutual Fund. What do you think po of”First Metro Save and Learn Fixed Income Fund”? Or any suggestions po kung anong maganda for a mid-conservative investors? thank you po in advance. God bless po 🙂

    Reply
  5. Miss Fehl, thank you for touching lives in your own ways through simplified helpful posts. May we request a layman tutorial on charting like MACD, Fibonacci retracement and the like, please? 🙂 Thank you again in advance.

    Reply
  6. Why my stock still red while if you check the value it is green.to cover up the red shall I add more added funds to my stock which are red? From Lyne

    Reply
  7. Hi ms. Fehl, somebody asked me to invest in the growth plus fund or prosperity equity fund of sunlife. how are they differ in mutual fund? tnx.

    Reply
    • Sun Life’s Growth Plus Fund is a Variable Life Insurance Fund meaning if you have it, you have insurance + investment. The investment could be a Mutual Fund (example: Equity Fund)

      Reply
  8. hi po! almost a week na po akong nagbabasa ng blog nyo, pagkagaling ko sa trabaho, habang nagpapahinga ay nagbabasa po ako ng blog nyo, pero before po kasi naghahanap talaga ako ng article na mag eenlighten sa kin about stocks o mutual fund dahil plano kong mag-invest..wala po akong knowledge about sa stocks, and gusto ko sanang mag ask sa inyo kung ano ang nababagay sa king investment, gusto ko pong mag invest ng long term like 3yrs, lets say 300k, then monthly of 20k..ano po ba ang maaadvice nyo na kung saan mas kikita yong pera ko, or if ever idiversify ko yong pera paano po ba yon, at saan ko pwedeng i-invest..sana naman po matulungan nyo ko..marami pong salamat ms fehl, god bless you po!

    Reply
  9. Dear Fehl,

    Nag comment lang po ko para mag pasalamat dahil ang laking tulong ng blogs mo lalo na sa tulad kong bago sa field na to. Ang dami kong natutunan, at iaapply ko po yun once maaprove na yung account ko sa COL at yung magic 10 nyo po, sobrang thankyou po Ms. fehl. Ang mga katulad nyo po ang pinagpapala ng Panginoon dahl kayo po mismo ay blessing din sa ibang tao. 🙂 Maraming maraming salamat po!

    Reply
  10. Hi Ms. Fehl question lang po..
    ano po ang maganda i open ng MF Equity Fund or PSE Index Fund…
    I do have already stocks investment…If i choose PSE Index Fund do u think it is double investment?
    Please enlighten my doubts..
    Thank you and God bless u more:)

    Reply
    • Hi. PSE Index Fund is also a type of Equity Fund. The stocks involved under it are the exact stocks in the PSEI. So if you want to follow PSEI, choose it. But if you prefer other stocks and allocation, you can choose other equity funds. If you have stocks bought via broker + shares from mutual fund, that is not a double investment. It is an additional investment because the 2 are not exactly the same. God bless! 🙂

      Reply

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