The year 2020 is one of the worst years for us to date. When the pandemic hit, many people lost their income, savings and investments. And one of the investments that is greatly affected are Mutual Funds. So in this article, despite the pandemic, let’s tackle the best performing Mutual Funds in the Philippines for the year 2020.
Don’t know what Mutual Funds are? Check these related articles:
If you’re looking to invest in Mutual Funds this year 2021 and are looking for the best performing ones, it is best to take a step back and check out the performance of the different Mutual Funds on the past year.
But before that, let’s see the big picture on how our economy looked like last 2020. And the way to do that is by checking our the Philippine Stock Exchange Index.
The Philippine Stock Exchange Index Performance for 2020
The Philippine Stock Exchange Index (PSEi) is a group of 30 carefully selected stocks to represent the general movement or performance of the Philippine stock market. Or roughly saying, the PSEi represents our economy. And this is how it performed last year:
During the month of March, this is where the pandemic was really felt. The government ordered lockdown, businesses suffered losses and employees can not go to work. People panicked and a lot sold their investments. This can be seen with the PSEi going down as low as -48%.
After the lowest drop, the market slowly recovered and at the end of the year, it recovered as high as +58%.
Now there are two things that can happened to your investment. If you invested early 2020, then you’re probably at a loss. But when you took advantage when the market dropped, then you’d be smiling big with your profits.
However for this article, to determine the best performing Mutual Funds in the Philippines for 2020, we’ll keep the calculations simple. We will only consider the Year-To-Date. It means the returns you get when you invested in the first trading day of the year 2020 and the returns at the end of 2020.
Important Disclaimer: past performance is not indicative of future results. In any investment there will always be risks involved. This article is for informational purposes only. Due diligence is still advised before going into any investments.
Best Performing Equity Mutual Funds in the Philippines for 2020
| TOP | Fund Name | Year-to-Date Return |
| 1 | Philequity Alpha One Fund, Inc. -a,d,5 | 4.99% |
| 2 | MBG Equity Investment Fund, Inc. -a | -2.42% |
| 3 | ATRAM Alpha Opportunity Fund, Inc. -a | -5.28% |
| 4 | First Metro Save and Learn Equity Fund,Inc. -a | -7.43% |
| 5 | Philippine Stock Index Fund Corp. -a | -8.29% |
| FOREIGN FUNDS (*Primarily invested in foreign currency securities) | ||
| 1 | Sun Life Prosperity World Voyager Fund, Inc. -a | 21.08% |
| 2 | ATRAM AsiaPlus Equity Fund, Inc. -b | 15.30% |
Since equity funds are primarily invested in the stock market, they are the most affected. As you can see only one equity fund managed to gain a positive YTD. While the others were at negative return.
Also in the previous articles, foreign funds are not included. But because of their significant returns, we’ve included it in this list.
Top Balanced Mutual Funds for 2020
| TOP | Fund Name | Year-to-Date Return |
| 1 | ATRAM Dynamic Allocation Fund, Inc. -a | 6.60% |
| 2 | ATRAM Philippine Balanced Fund, Inc. -a | 4.51% |
| 3 | Sun Life Prosperity Achiever Fund 2028, Inc. -a,d | 0.57% |
| 4 | NCM Mutual Fund of the Phils., Inc. -a | 0.12% |
| 5 | PAMI Horizon Fund, Inc. -a | -0.15% |
| FOREIGN FUNDS (*Primarily invested in foreign currency securities) | ||
| 1 | Sun Life Prosperity Dollar Advantage Fund, Inc. -a | 15.11% |
| 2 | PAMI Asia Balanced Fund, Inc. -b | 12.91% |
| 3 | Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 | 6.28% |
| 4 | Cocolife Dollar Fund Builder, Inc. -a | 2.46% |
For the balanced funds, since it is roughly allocated at 50% stocks and 50% bonds, they’ve performed at a positive return with the highest at 6.60% return.
Also, just like the equity funds, foreign balanced funds also perform significant returns.
Best Performing Bond Mutual Funds in the Philippines for 2020
| TOP | Fund Name | Year-to-Date Return |
| 1 | Soldivo Bond Fund, Inc. -a | 8.01% |
| 2 | Philam Bond Fund, Inc. -a | 5.92% |
| 3 | Philequity Peso Bond Fund, Inc. -a | 5.60% |
| 4 | Philam Managed Income Fund, Inc. -a,6 | 5.12% |
| 5 | Sun Life of Canada Prosperity Bond Fund, Inc. -a | 4.05% |
| FOREIGN FUNDS (*Primarily invested in foreign currency securities) | ||
| 1 | ATRAM Total Return Dollar Bond Fund, Inc. -b | 6.06% |
| 2 | Philam Dollar Bond Fund, Inc. -a | 5.43% |
| 3 | Philequity Dollar Income Fund Inc. -a | 3.50% |
| 4 | ALFM Dollar Bond Fund, Inc. -a | 3.29% |
| 5 | First Metro Save and Learn Dollar Bond Fund, Inc. -a | 3.10% |
Now when the equity funds go down, it is expected that the bond funds will go up. And as seen in our list, these top bond funds indeed perform a positive ROI with 8.01% growth as its highest.
Foreign bond funds also performed well.
There are still other types of mutual funds such as the money market funds and feeder funds, but it is no longer included in this list. So far, the equity fund, balanced fund and bond fund are the common types of mutual funds.
If you want to check out all the mutual fund types and its performance, you can visit the Philippine Investment Funds Association website here.
Hopefully with this list, you have seen the potential and have a better understanding on how to invest in Mutual Funds. And for this year 2021, hope this list has served you in choosing the best performing Mutual Funds in the Philippines.
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