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Published February 18, 2019

This year may NOT be the best year for mutual funds’ growth as the market seems to be bearish. But it is one of the best time to enter in the market. In today’s article, let’s discuss the performance of the market and the top mutual funds in the Philippines for 2018.

The performance for 2018 will be based on the YTD or year-to-date performance. Meaning the performance will be based on the percent growth for investments in January 1, 2018 up to Year end (as of writing Dec. 11, 2018).

Now before we proceed with the top 5 in each mutual fund type, let’s take a look at the Philippine Stock Exchange Index (PSEi) for 2018.

The Philippine Stock Exchange Index Performance for 2018

After climbing to all time high (ATH) around 9,000 early this year, the market went down below 8,000 mid-year and further went down below 7,000 losing more than 20% from ATH! Therefore, most mutual fund investments are also negative.

The Philippine Stock Exchange Index for 2018

Therefore if you invested early this year, your investments are surely bloody red. If you are already inside the market, when it went down should be the best time to add. If you just started in the middle of the year, it’s one of the best time to invest then!

Anyway, here are the top 5 mutual funds in each category (most of them are negative) for 2018.

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. 

Top Equity Mutual Funds in the Philippines for 2018

TOP Fund Name Year-to-Date Return
1  United Fund, Inc.* -11.09%
2  Philequity Dividend Yield Fund, Inc.* -11.50%
3  Philequity Fund, Inc.* -11.95%
4  Sun Life Prosperity Philippine Equity Fund, Inc.* -12.13%
5  Soldivo Strategic Growth Fund, Inc. * -12.17%

Since most equity funds are heavily invested in the market, most of the funds are negative. Ouch! But again, a gentle reminder that the negative returns are just paper-losses. Meaning, unless we withdraw our funds, these losses aren’t realized yet. Thus, the remedy for this is to add more or just wait for it to recover.

Top Balanced Mutual Funds in the Philippines for 2018

TOP Fund Name Year-to-Date Return
1  NCM Mutual Fund of the Phils., Inc -8.18%
2  Solidaritas Fund, Inc. -8.69%
3  Sun Life of Canada Prosperity Balanced Fund, Inc.* -9.1%
4  First Metro Save and Learn Balanced Fund Inc.* -9.77%
5  Sun Life Prosperity Dynamic Fund, Inc.* -9.82%

Balanced Funds are also negative. But since it is a combination of stocks and corporate or government bonds, it is not as negative as the equity funds.

Top Bond Mutual Funds in the Philippines for 2018

TOP Fund Name Year-to-Date Return
1  Cocolife Fixed Income Fund, Inc.* 4.99%
2  ALFM Peso Bond Fund, Inc.* 1.68%
3  Ekklesia Mutual Fund Inc.* 1.27%
4  Sun Life of Canada Prosperity Bond Fund, Inc.* -0.37%
5  Philequity Peso Bond Fund, Inc.* -0.39%

Now here’s the amazing part, when the equity funds are down, the bond funds usually are positive. This is the key to minimizing your risks: diversification. Even if the market is down, bond funds can stay positive. However, when the market is flying high, the bond fund returns may not be as significant.

Thus, it is important to understand the different types of mutual funds and how each works depending on your financial goals and needs.

Click here to see the full list of mutual funds performances for 2018
Source: Philippine Investment Funds Association (PIFA)

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