The BPI Investment Fund


This article is posted under In Focus, Income Opportunities, Investing.

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.

CONSERVATIVE

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.

MODERATE

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.

bpi investment funds The BPI Investment Fund

AGGRESSIVE

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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People are talking about this article, join the conversation below.

  1. Hmm, I think I wanna be a conservative one. For now since I don’t have enough free money that I could risk. Good entry as always! SALUT!

  2. What investment strategies are there to net at least 8% growth every month? I’m not satisfied with 5% to 10% gains per annum. To me its a waste of effort.

  3. @jonatsgonuts, for a high rate of return, my answer would be to buy, renovate, then sell real estate where a great deal can potentially net about 100% profit in a few months although my last deal only earned me about 30% profit in 55days. However, I had to come up with 20% downpayment and i also got money for repairs through a personal loan.

  4. Been wanting to really invest in mutual funds.

    Noobie question, Fitz…

    Is it a good time to invest? With the global crisis and all? If so, what are your recos?

    Thanks,
    Mon

  5. @Mon
    Is it a good time to invest now? Some would say it’s a buyer’s market so yes, it’s a good time.

    But of course, it all depends on your risk tolerance. In general, mutual funds are good investments if you can afford to hold it for a few years.

    Just my two cents. It’s best to ask the financial experts so they can give you better insights. :D

  6. Thanks, sir. I’ll check it out.

  7. ariel carandang on May 29th, 2009 at 1:51 am

    hi,

    I am holder of Pre Need Plan from the formerProfessional Education Trust and Pension Inc. My investment there was transferred to BPI and i want to with draw my investment there. How I am going to do this?
    Thank you.

  8. Wow! I was surfing through your site and I can’t believe the loads of useful information I found. Thanks so much for sharing. Especially on including news about events in Mindanao (saw the FPP Expo), as I am from Davao. ^^

    Sharing my 2 cents on mutual funds. I agree that now’s a good time as any to invest in mutual funds especially if you are planning to invest for the long haul. But investors should also be oriented about the types of Mutual Funds / UITFs available. Usually, conservative investors would prefer investing in Fixed Income funds (BPI short term and Premium fund above / ALFM Peso Bond Fund / ALFM Dollar Bond Fund). While aggressive investors would consider Index/Equity Funds (the ones stated above and the ALFM Philippine Index Fund which follows the Philippine stock market)

    As a last note, the BPI Investment products mentioned above are actually classified as UITFs (Unit Investment Trust Fund) and not Mutual Funds. (BPI’s mutual funds are under the ALFM family). Nevertheless, the concepts of both funds are the same, so no big deal about that.

    Thanks again. Looking forward to your future posts.

    Earn and Save Money Now – Free Personal Finance blog!
    The Pinoy Entrepreneur

  9. Hi! Sorry about the FPP Expo thing, I mistook your site for someone else’s. I saw the FPP post at EntrePinoy, my fault. But I truly found your site informative. I’m right now reading the post on how to start a vending machine business. That post just gave me an idea for a possible income generating venture ^^ Thanks.

  10. Thanks everyone for your comments.

  11. saan ba pueding magsimenar tungkul sa stock market trading balak ko sanang maginvest pero wala ako idea tungkol jan

  12. I am interested in mutual fund. How will I know if the companies in ICAP is a good one to invest? How do I monitor my investment justt in case I am in in the investing? How do i know if my investment are gaining or not gaining or rather please advise how to read rates from mutual funds?

  13. Hi Elen, you can look at the performance history of the company to judge if they’re good or not. That report can be requested from ICAP.

    Monitoring an investment can be as simple as asking the company the current value of your investment – then deciding if it’s time for you to cash out or wait it out.

    Sometimes, the value can go high for a limited time and if you don’t monitor your investment, you could miss a good opportunity to cash out and earn.

    Cheers!

  14. I am a newbie to these investment programs. What are the risk of losing my money in BPI short term fund.

  15. Is it easy to cash out? Or will you need some time to process papers, etc?

  16. @Judith – very little risk as it’s a conservative fund.

    @Bam – yes, very easy, it will not take you more than a week; most of the time, it will just take two banking days.

  17. how much po minimun investment sa mutual funds? salamat po

  18. I’ve been looking at banks and interest rates.. very low annual interest rate even if deposit is over 300k.

    I’ll be reviewing BPI Short Term Fund. I’m very conservative becaue this is money I worked very hard for.

    I’m also looking at Trust Fund programs. I heard SunLife is good.

  19. Regarding with BPI equity fund, I was thinking of investing with this one though im just a newbie. Whats gonna happen if things get worse? Is it gonna be “balik-taya” with the money that I put in or I’m gonna lose it all?

  20. Wow fitz.. nag top pala to… Alam mo na. ^__^

  21. Money Market Funds are parking funds so if you are going to invest on it, you are just like placing money on a savings account so a Time deposit would be much more profitable especially on rural banks.

  22. BPI mutual fund is not listed in icap.com.ph

    i can’t decide wether to invest or not.

  23. millettemanaog ,

    ALFM FUNDS are BPI

  24. Robert Kiyosaki believes investing for cashflow is better than in investing for capital gains (stocks, bonds, mutual funds). Just like fast food, it is ok to invest for capital gains occasionally, but eating it regularly is not healthy and can be a rip-off in the long run.

  25. I’m a regular reader btw Fitz, love your work, can you please write about the pros and cons of “Back to Back” Loans?

  26. Hi Fitz, nice blog. I’m also fond of earning and prepared to buy assets than liabilities. I’ve learn a lot from ur blog, tnx and keep up the good work…

  27. Hi Fitz,

    Whats the best performing mutual fund in the country to invest in right now?

  28. n Is there an ‘OR’ account in mutual funds? Can me and my wife sharw the same certificate?
    Thanks and more power to your site!

  29. thanks fritz for the information, i am interested to invest in BPI, thanks for the post.

  30. when you say “medium to long term” with respect to this line of investment, how many years or i should say, how long are we talking about?

  31. Hi Rodrigo, personally, medium to long term is somewhere between 3-7 years.

  32. The way I see it, the objective of everyone thinking about going into investment is to first make money, more money, and second not to lose money in the process in the long run.

    So, all that classification of investors into conservative, moderately conservative, moderately aggressive, aggressive is all superfluous.

    The question to ask oneself and for funds operators to ask people interested in investing with them is the following:

    Do you have excess money which you can see getting lesser with investing in our funds, although in the long run say 3 years time if you don’t pull out your investment, it will earn you more than 3 years time in any time deposit in a bank?

    If yes, then invest; if no, then don’t invest.

    So, the more excess money you have, the more funds you invest your excess money in, the less excess money you have the less funds you go into.

    Which fund is the most productive?

    Answer: Any equity fund whether mutual fund or uitf fund, but you must not pull out unless only after 3 years of leaving your investment with the fund operator.

    In 3 years time you will see that it has earned much more than any time deposit you put the same money into for 3 years with a bank.

  33. Hi!

    Thanks for the all the info. It was really helpful. I’m a young individual looking to invest in BPI short term fund. This is my first time investing and frankly i am excited.

    Can anyone recommend a book or article that talks about investing wisely?

  34. Im just started to invest my money in BPI Balanced Fund last May 10,2013….. and im happy coz i got already 1500 pesos interest for 5 days> im planning to add more amount since its working good.

  35. yea,its working good.i invested in BPI equity last November and got 14k for the interest.

  36. hi, i read your blog almost everyday! :) by the way, do you need to have a bpi dollar account to invest in their dollar uitfs? or can you directly give your dollars to them and have it invested in a dollar uitf?

  37. What is the annual interest rate of BPI for short term fund?

  38. @rose,

    There is no fixed annual interest, but it would be anywhere between 1% to 4%, higher if the economy continues to go higher.

  39. WHat is the average annual interest rate of the premium bond fund? i need it for a school project :)

  40. 7.20% gain annual for bpi premium bond fund

  41. Hi,

    Can anyone advice me about PNB UITF, I have an account in this bank and wanted to invest in both Balanced and Equity. I´m only waiting for my account to be credited for online registration. Is PNB right now still reliable just like with the other banks. I´m here in Spain and have no time to go research and ask any bank´s financial advicer about this matter.

    Any help please. Thank you.

  42. hi. how much money will i invest on conservative fund?

  43. i want to invest. what kind of funds will you advice on me.

  44. hi! i watch TV commercial about 10k start BPI investment. im interested can go give me more idea about this investment.


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