A friend of mine gave me yesterday a brochure from the Bank of the Philippine Islands. It’s a marketing flyer about the different BPI Investment Funds.
He was hoping for me to have a look at it and eventually help him decide which one to invest in.
But I said to him that I’m not in the position to tell him where to invest but we can go through each one and I’ll do my best to answer his questions about the different fund investments that BPI is offering.
And so we sat down for some coffee and went through the brochure.
Whenever you are thinking of investing in mutual funds or any other instruments, the first thing you really need to know is your investment goal. Ask yourself first why do you want to invest?
Your reasons and objectives for investing are important because it’s the biggest factor that affects your investment risk tolerance.
The BPI Investment Fund consists of several fund instruments, and depending on how much risk you can afford, you can consequently choose to be conservative, moderate or aggressive in your investments.
If you are a conservative investor who want to minimize risk but wants to earn better and steady returns than term deposit products, then this investment fund is right for you.
BPI Short Term Fund
A money-market fund that has a diversified portfolio of short term government securities, money market securities, and other highly marketable fixed-income instruments. This is ideal for people who will need the money in the near future for expenses such as a home renovation or a family vacation.
If you are a moderate risk investor who wants to increase the value of yoru portfolio over the medium to long-term and who is willing to take temporary price fluctuations, then these investment funds are ideal for you.
BPI Premium Bond Fund
Primarily invests in high-grade government securities, commercial papers, bonds, and other fixed-income investment instruments. Higher returns are gained than conservative investments because there is a steady flow of interest income from investments and compounding as a result of reinvestment.
ABF Philippines Bond Index Fund
This is the first bond index-tracker fund in the Philippines and is suitable for investors who want a significant exposure in Philippine bonds at a low cost. The fund invests in peso-denominated sovereign and quasi-sovereign bonds which include Fixed Rate Treasury Notes or Bonds and Zero coupon Notes or Bonds, among others.
BPI Global Philippine Fund
A US dollar bond fund, its income comes from investments in U.S. dollar-denominated fixed-income instruments issued by the Philippine government and by prime Philippine corporations and financial institutions. It is suitable for investors seeking higher returns for their U.S. Dollars over the medium to long-term.
If you are an aggressive invstor who is willing to take the risk of negative fluctuations in returns over the medium to long-term, including the possibility of incurring a loss in exchange for really superior returns, then these investment funds are for you.
BPI Equity Fund
Ideal for people who wants to invest in the Philippine Stock Market but do not have the time nor the expertise to directly select, monitor, and manage their own stock investments. It primarily invests in equities listed on the Philippine Stock Exchange and some marketable government securities for liquidity.
BPI Global Equity Fund
Income is derived from investments in global equities and fixed income instruments denominated in major currencies. It is managed by BPI-accredited international fund managers. Ideal for those looking for investment growth in global stocks and are willing to take high risks in exchange for higher returns.
BPI Philippine Dollar Bond Index Fund
This is said to be the country’s first dollar-denominated bond index fund and primarily invests in Philippine sovereign, quasi-sovereign and corporate fixed income securities. Ideal for those looking for a long-term dollar investment.
These are the investment funds written on the brochure. Do any of them interest you?
Furthermore, upon checking the BPI Investment Fund website, I discovered that they also have other funds you can choose from like the BPI Institutional Fund, BPI Balanced Fund, BPI International Fund Plus, Philippine Stock Index Fund and the BPI Gold Fund.
I would like to clarify that I am not connected to BPI and this post is not sponsored by them. This article is part of In Focus wherein I try give specific information about products, people and businesses that my readers might find interesting and useful.
Furthermore, if you’re new to investing then I hope you take time to read my series of posts on how to start investing for beginners.
Lastly, if you are interested in any of the investment funds above, then please visit any BPI or BPI Family Bank branch near you or just go to your bank and ask if they have any similar products that they can offer.
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