Best Mutual Funds to Invest in the Philippines in 2021

Want to invest and grow your income this 2021? The following are the best mutual funds to invest in the Philippines in 2021. We have completed the list and wrote them down per fund classification – equity fund, balanced fund, bond fund, and money market fund.

Mutual funds are among our favorite types of investments because they are professionally managed. Besides their different asset classes and compositions, mutual funds are also great options to diversify our portfolio.

On this page, we share with you the top-performing mutual funds in the Philippines in 2021. If you are a beginner or an experienced investor, knowing the excellent mutual funds to invest right now will help and guide your investing journey.

What are Mutual Funds?

Mutual funds are pooled investments managed by professionals and financial experts. These pooled funds are invested in different assets such as money market funds, fixed income securities, and equities. There are different types of mutual funds that match every investor’s financial goal and risk profile.

Benefits of Investing in Mutual Funds:

  • Affordability
  • Diversification
  • Liquidity
  • Expert Fund Manager
  • Profit Potential

Why should you invest in mutual funds?

Earning Potential

Many investors rely on mutual funds to earn and gain income, especially the risk-takers who prefer stock funds or equity funds. Mutual funds generate higher returns than regular savings accounts or time deposits.

Professionally Managed

You don’t need financial expertise to manage mutual funds because these investments already have professional and excellent fund managers who will do the technical tasks and investment strategies to grow the fund.

To Beat Inflation

Prices increase now and then, but people’s regular income barely rises. We have to invest our extra funds and venture on income-generating assets as well to beat inflation. One way to do that is by investing in mutual funds.

Additional Retirement Fund

Mutual funds can also aid us in our retirement by investing for long term. The funds that we invested some years ago can grow over time. We can redeem our mutual funds when we retire and use the capital and profit as additional savings.

These types of funds and investments have risks and it is very important to get to know them better, get to know your status as an investor, and diversify your investment wheels.

Different Kinds of Mutual Funds Available Right Now

The following are the different kinds of Mutual Funds available in the Philippines right now. Always remember, the higher the risk, the higher the earning potential.

We classified the available mutual funds according to the type of investor, risk, and goal.

best mutual funds to invest philippines

Best Mutual Funds in the Philippines in 2021

If you are already eyeing the best investments for mutual funds, here is the latest data of their performance in a year. The stats are taken from the Philippine Investment Funds Association.

The early bird usually catches the yummy worm. These are the top mutual funds that performed well with higher returns. And as usual, we will update the data again in the coming months and the next quarter.

Top 15 Best Performing Equity Funds in the Philippines in 2021:

NAVPS Performance are as of August 3, 2021. Data shows 1-Year Return (%).

  1. ATRAM Alpha Opportunity Fund 43.34%
  2. MBG Equity Investment Fund 24.82%
  3. Philequity Alpha One Fund 19.17%
  4. Soldivo Strategic Growth Fund 13.05%
  5. Philequity Dividend Yield Fund 12.56%
  6. ATRAM Philippine Equity Opportunity Fund 11.86%
  7. Philequity fund 11.66%
  8. First Metro Save and Learn Equity Fund 11.47%
  9. Philequity PSE Index Fund 10.46%
  10. United Fund 10.44%
  11. Sun Life Prosperity Philippine Equity Fund 10.39%
  12. Philippine Stock Index Fund 10.33%
  13. Sun Life Prosperity Philippine Stock Index Fund 9.95%
  14. PAMI Equity Index Fund 9.65%
  15. Philequity MSCI Philippine Index Fund 8.31%

Top 10 Best Performing Balanced Funds in the Philippines in 2021:

NAVPS Performance are as of August 3, 2021. Data shows 1-Year Return (%).

  1. Sun Life Prosperity Dynamic Fund 7.62%
  2. Sun Life of Canada Prosperity Balanced Fund 6.12%
  3. First Metro Save and Learn Balanced Fund 5.54%
  4. Solidaritas Fund 5.51%
  5. Sun Life Prosperity Achiever Fund 2048 5.22%
  6. ATRAM Philippine Balanced Fund 4.86%
  7. ATRAM Dynamic Allocation Fund 4.70%
  8. NCM Mutual Fund of the Philippines 4.61%
  9. Philam Fund 3.86%
  10. Sun Life Prosperity Achiever Fund 2038 3.69%

Top 5 Best Performing Bond Funds in the Philippines in 2021:

NAVPS Performance are as of August 3, 2021. Data shows 1-Year Return (%).

  1. ALFM Peso Bond Fund 1.28%
  2. Cocolife Corporate Bond Fund 1.23%
  3. Philam Managed Income Fund 0.56%
  4. Sun Life of Canada Prosperity Bond Fund 0.55%
  5. Philequity Peso Bond Fund 0.51%

Top 4 Best Performing Money Market Funds in the Philippines in 2021:

NAVPS Performance are as of August 3, 2021. Data shows 1-Year Return (%) including dollar securities.

  1. Sun Life Prosperity Money Market Fund 1.56%
  2. ALFM Money Market Fund 1.37%
  3. Sun Life Prosperity Dollar Starter Fund 1.05%
  4. First Metro Save and Learn Money Market Fund 0.98%

If you are into investments, we are sure you are diversifying your capital by having more paper assets while also investing in other assets like real estate properties, businesses, and passive-income investment wheels.

Mutual Funds are just one of the many investments you can start to have financial abundance. There are also other rewarding paper investments like UITF, ETFs, and stocks. Remember to invest according to your risk appetite, financial stability, and goals.

FAQs About Mutual Funds:

Are mutual funds exempted from tax?

Yes, as amended in the National Internal Revenue Code of the Philippines, gains realized upon redemption of shares in a mutual fund company are exempt from income tax. This law is amended to encourage more Filipinos to save and invest money.

Can I lose money investing in mutual funds?

Mutual fund investments carry risks. An investor must study the mutual fund’s prospectus, evaluate his risk tolerance, financial status, and objectives before investing in a mutual fund. An investor could lose money in mutual funds if he failed to execute the right time and strategy for his investments.

What is NAVPS in mutual funds?

NAVPS is an acronym for Net Asset Value Per Share. It is used to measure the value of one share of a mutual fund. Investors can buy or sell shares of a mutual fund according to the NAVPS, which changes every trading day.

Other Investment Guides:

Disclaimer: This article is for information purposes only and should not be considered as professional advice. Investments in mutual funds have risks. Historical performances don’t guarantee future results. Always do your research before investing your money.

About Fehl Dungo

Licensed Career Service Professional, tech investor, founder of Philpad, and published author of a poetry book at Barnes&Noble.

223 thoughts on “Best Mutual Funds to Invest in the Philippines in 2021”

  1. How do you choose the right mutual funds Ms Fehl?

    Do we have these types of funds in the Philippines?

    Growth
    Growth and Income
    Aggressive Growth
    International

    If time permits and I am able to invest.

    Please point me to the right direction. By the way your website is very informative. I appreciate it.

    Reply
  2. Hi Ms. Fehl, can you check for me if there’s a nearest Mutual Fund Company in Butuan City Agusan del Norte particularly, or within Butuan City? Thank you.

    Reply
  3. Ms. Fehl good day! Thanks for the article! Question lang po, considering na nasa 40 pesos na ang NAVPS ng PhilEquity from below 10 pesos more than 10years ago, possible pa din ba na tumaas pa siya lalo? And is it okay to invest po in equity funds for around 20-30 years? Thank you po.

    Reply
    • It’s ok so long as you don’t need your money and the net asset value per share(average acquision cost) does not fall below your estimated return for the long-term and inflation rate

      Reply
  4. Hi there!

    Very useful post! By the way, are you using cumulative return on the 5-year return or is this CAGR?

    Thanks!

    Reply
  5. Hi Ms. Fehl!

    May nag-recommend lang po akin na mas maganda daw mag pa member sa International Marketing Group (IMG) kasi isa sa mga bininbigay nila na benefits is zero sales load. Is that true? If it’s true, is there a minimum investment para maka avail sa sinasabing zero sales load na yan? Kung walang sales load, may possibility ba na doon sila kukuha or magchacharge doon sa kikitain ng investment mo? What can you say about it? Your respond is highly appreciated. Thank you so much!

    Rodz

    Reply
    • I can confirm IMG has no sales load for the MF that if offers. Check the MF available from them. Normally for MF, min is still 5K. With IMG, you need to be a member to avail of such discount that entails additional cash outlay from you. You also have to check once your order has been executed to verify if the sales load has not been charged. Also, there are other fund houses that offers no sales load on their funds. Hope this helps

      Reply
  6. Hi Ma’am Good day!

    May nag-recommend lang po sakin na it is best to register with the International Marketing Group (IMG) daw kasi isa sa mga benifits ino-offer nila is a zero sales load to every transactions you will make. Is is true? If yes, is there a minimum amount of transaction so we can avail the said benefit?

    Thank you.

    Rodz

    Reply
    • like ms fehl said, to be an img you need to pay for a membership fee of around 3k plus as membership fee and has to get a kaiser plan payable for 7 years.

      so, it is not wise to be an img member if you are just sparing some cents for a zero sales load. but, if you want to avail of their free seminars and other benefits such as getting a commission for your insurance and investments then, you need to apply as member and pay certain fees and get the kaiser plan.

      Reply
  7. Excited to try Philequity PSE index fund. Mghinay2 lang ako like 3k a month for a year, tingnan ko kung kaya! 😀 Thanks, Fehl.

    Reply
  8. to be honest gusto ko mag open ng Equily fund but like you said aggressive sia they mean possible na mawala ung pera if malugi ka ?

    Reply
    • Equity Funds are suited for 5 years or more. Do not expect lalaki ang funds mo in a year. You need to invest time din. So far wala pa naman akong kilala na nalugi sa Equity Funds. Aware kasi sila sa term ng investment and so objective ng funds. God bless!

      Reply
  9. hi!
    i got Philequity and ALFM as my bond fund but what do you think is the best balance fund and equity fund so far?
    is Philam good for bond fund as well?

    thanks.

    Reply
  10. hi Fehl – gusto sana subukan ang bond fund or balanced fund. ano pong personal choice nyo on either of these funds? was thinking of ALFM for bond fund.. thanks ahead!

    Reply
    • Hi, aggressive po kasi ako kaya more into Equity Funds. Ok naman ang Balanced Funds and Bond Funds for moderate risk takers and medium term

      Reply
      • Hi Good evening! 🙂

        Maganda po ba mag invest sa equity fund ng sunlife? Balak ko po kasi mag invest sa kanila.

        Can you give me some technique or strategy to minimize risk when investing in equity fund? Like kelan ako magtataas ng iinvest na money.

        Thank you in advance .

        Reply
  11. Hi ms. Fehl, i’m 22 years old and matagal na din po aq ngbabasa with your diff. article. and i decided i should have my investment for my future . ask qong lang po if pwde na po bang aqng magkapag-invest in philequity with a P5,000? and pwde po bang mag-apply sa philequity through online lang. and can you suggest me what & where can i invest with P5000? i want po sana is yung high risk with high return.

    thank you in advance & your response is very much appreciated. Gobless po.

    Reply
    • Yes, you can invest in Philequity online if you already have COL Financial account. COL serves different mutual funds like Philequity, Sun Life, ALFM and many more. It’s very easy and fast. YOu can raed more MF guides on dailypik.com I made that site for stocks and MF guides and tips. Cheers!

      Reply
      • ano difference if I directly course my investment through Philequity instead of COL? except for the obvious that it is much faster with COL.

        does COL collect commission? if yes negligible na ba yun amount

        Reply
  12. Hi,

    Looking at the bond peso fund, would it be safe to say that Cocolife Fixed Income Fund was doing very well? Based on historical data (which I don’t have, but you might), would it be a safe investment for the long term?

    Thanks!

    Reply
    • Hi. Cocolife Fixed Income is great and also First Metro Save and Learn Fixed Income Fund, both are good for long term but of course past performance won’t always guarantee future performance

      Reply
  13. Hi,

    I am planning to stay an Equity accounting and I am looking at FAMI or Phil Equity? Which would you recommend? Also, I would want to know if Philam is also good for such?

    Reply
  14. Hi,

    Pano po ba magopen ng philequity ? yun kase want ko po sana..
    ang baba kase ng return ng alfm compare sa philequity. TYI. Godbless!

    Reply
  15. Hi Fehl, Is there a chance you can review Soldivo funds. Thinking of investing here but sales load and management fees are high.

    Reply
  16. Hi Ms. Fhel,

    I am a newbie and i have been reading your posts and they are very helpful to me. I just want to ask about the year-to-date percentage in the columns you have made. What does it mean if they have a negative value? Is that a bad thing? Would they mean a loss on our part? Thank you so much and im hoping for your enlightenment.

    Reply
    • Year to date means year so far, from Jan.1 to present. If you have a negative value for YTD, then your earnings will be affected since YTD performance is not great. It won’t mean total lost

      Reply
  17. Hi Ms. Fehl,

    Gdpm po just have a couple things to ask:

    1. Base on your experience, which company would you recommend
    Philequity or Firstmetro?

    2. Is there a living proof who gained millions because of the
    investment? Do you know a person? (reason i asked this kase po they
    say na sa investment walang sigurado, high risk high return, so
    wondering kung may average filipino citizen na kayong kilala na nag
    gain na sa Mutual Fund or pag dating sa investing after so many years).

    Reply
  18. Hi Mis Fhel, need pa bo ba mag broker online para mag invest or pede dumiretso sa opisina ng mga company para mag invest, para mabawasan yung fee para sa broker.

    Regards,

    Reply
  19. hi ms fehl just want to ask if wat is the best company for bond fund and money market fund in your opinion.. im very conservative investor. ty

    Reply
  20. hi po! inquire ko lang what if i invested 5k then ang addt’l investment ko every month is 1k? ok lang po ba un?
    Ang AI po ba is a requirement?

    Reply
  21. hi miss fehl ..
    i just want to ask if what is the best performing bond fund company in the philippines.. its my first time to be with this investment.. just wanna try first the bond fund.? thank you.

    more power

    Reply
  22. Hello Ms. Fehl

    I’m new to all of this. May I please know whether your sources for these figures are accurate and official?

    Thank you.

    Reply
  23. Thanks for this. Very helpful!

    Looking at the best Equity mutual funds, it seems “Philippine Stock Index Fund” has the highest returns across 1,3,5 years.. I tried searching it online however i cannot find the broker/firm. Could you please share what broker/firm manages this fund?

    Thanks!!

    Reply
  24. Just want to ask. If saan mas okay mag invest or kumuha ng MF, sa COL or direct sa sunlife?

    Also, in terms of liquidation the assets saan mas madali po?

    Reply
  25. Ms.Fehl,

    Please advice, I have 500k to invest i like long term 3yrs up. What is the best investment scheme to invest my money. Thank u.God bless

    Reply
    • If you are aggressive, aware of the high risk and 500K is only 20% of your whole money asset, invest it in an Equity Fund from a mutual fund or UITF.

      Reply
  26. Hi Ms. Fehl,

    My friend and I would like to know more about mutual funds. We are looking at investing in philequity or sunlife. Can you enlighten us which is better? Need your advice. It would be great if you can give us other options too.

    Thanks,
    Roxanne

    Reply
  27. hi ms. fehl, i already placed my investment in BDO uitf only 10k lng muna. i asked the teller if pwede q dagdagan ung 10k q next month para mas malaki ang return q after 3-5 yrs..she recommend generali…then, the financial adviser explained their life insurance…
    my question is maganda ba mg invest sa generali?ung investment q b sa mutual fund mapupunta?
    san ba mas mganda mag invest sa bdo uitf equity fund or sa generali?
    thanks a lot

    Reply
    • Hi, Generali kasi ay Insurance and Investment. If you don’t have insurance yet, you can get one like Generali BUT make sure you are comfortable paying it usually kasi mahal ang premiums. Pag-aralan mo muna mabuti and think many times bago ka kumuha lalo na pag 50K and above per year na ang usapan nyan per year.

      Reply
  28. Good day Mam!

    I plan to get a MF and a UITF soon. What company/bank would give me the best deal in terms of charges/fees to profit/interest rate value? I was thinking bpi all the way but your thoughts are greatly appreciated. TIA!

    Reply
    • Halos pare pareho nlng din naman as to fees and charges accross all uitf’s and mutual funds.
      One consideration is the convenience to make additional investments.

      Reply
  29. mam ystrdy ka pickup lng ng colpa
    ra sa application namin ni misis planning to invest sa mf for lng term tama ba na sa philequity kami mag open at among product

    Reply
  30. Hi ask ko lng poh ng invest ako sa soldivo and fil equity bat untill now wala pa akong ntanggap n letter kung ng intres n b pera ko or hindi 1yr na plz

    Reply
  31. Hi Ms. Fehl, under the best equity fund, I’m interested kasi in the Philippine Stock Index Fund but when I try to search it online, maraming lumalabas under different companies that offer PSE Index Fund. Under what company po ba yung nasa list? Thank you!

    Reply
  32. Hi ms Felh, I have a savings account in BDO and gusto ko sana itry yung pagiinvest. Hihingi lang po sana ako ng suggestion nyo po. And how much po yung initial amount na kailangan?

    Thanks! hope you will reply.

    Reply
  33. hi mis fehl.. ask ko lang kung ok ung phil equity peso bond long term ang plan ko.. moderately aggressive investor.. and bka ,ay my masuggest ka sakin kc kkaopen ko lng ng acct and gust q na magstart ng mf fund.. thank you po…

    Reply
  34. Hello Ms. Fehl.. ako po uli 🙂 ngstart po ako ng Mutual Fund after reading all your blogs po, I chose First Metro Save and Learn Fixed Income Fund.. question lang po, un na po ba ung pinaka stock ko or inaallocate po nung Fund Manager into different stocks? Thank you po and God bless!

    Reply
  35. Hi, I have a stock certificate from Filipinas Mutual Finance Inc. It is in the name of my grandmother. Is this worth anything today? I’m new to to the mutual funds area and would greatly appreciate your guidance. Thanks in advance!

    Reply
    • Hi, Ino, we’re in the same situation. I came across a stock certificate from filipinas mutual finance inc. Dated way back 1993, which is in the name of my grandmother. I was wondering if you followed yours up. If so wanna know if it’s still worth anything. Thanks.

      Reply
  36. hi ms Fehl,
    pano po mag open sa BDO UITF, if OFW po ako, may regular remittance po ako sa BDO, meron din po ako ebanking,ndi ko lang po alam pano mag register if pede online, pa help naman po,
    salamat po.

    Reply
  37. Hi Ma’am Fehl. Gsto ko mag umpisang mag invest lalo na para sa future ng anak kong 2 yrs old. May inopen kaming savings account nya sa Metrobank pero parang natutulog lng di ang pera sa kakarampot na interes. Ano po ang masuggest nyo na gawing investment para sa future ng baby ko? Mutual fund po or UITF? Long term plano ko mga 20 to 25 yrs po na hindi namin pakikialam at gsto namin lmaki din ang pera na iinvest namin para sa knya. Sana makapag reply po kayo. Thank you.

    Reply
  38. Hi mam fehl, gusto ko sanang mag invest sa soldivo, i heard na bago pa po itong MF nato, is it a right decision for me? Bago palang ako MF stuffs

    Reply
  39. good day po ms. fehl…ano po sight ng sunlife?paano po ako makakasali sa mutual funds nila nandito po ako sa abroad pls. advice po kung ano po gagawin ko..salamat po

    Reply
  40. Hi Ms Fehl,

    All your comments and suggestions are very valuable and inspiring. Can you please comments on 2 funds as follows: Money Tree from PhilAm and Equity Fund 2 1=1 of BPI.

    Thank you and God bless you more

    Reply
  41. I think the computation is like this

    Total = [P(1+r/n)^nt] + {AI*[((1+r/n)^nt -1)/(r/n)]}

    Where P= Initial investment
    r= rate of interest per year
    n= number of times compounded per year
    t= time or number of year invested
    AI = additional regular investment

    For example:
    P= Php 5000
    r= 15%
    n=12 times a year
    t=10years
    AI= Php 5000 per month
    Thus:
    Total =[5000(1+0.15/12)^120] + { 5000*[((1+0.15/12)^120 -1)/(0.15/12]}
    =[5000(4.44)] + {5000*[(4.44-1)/0.0125]}
    = 22,200 + {5000[3.44/0.0125]}
    = 22,200 + {5000[275.2]}
    = 22,200 + 1,376,000
    = Php1,398,200.00
    Hope this computation will help especially for those asking for a potential returns

    Reply
    • I don’t think your formula is right. Where can you see an investment amounting to 5,000 pesos will earned more than a million pesos in just 10 years? Please correct me if I’m wrong. Thank You!

      Reply
      • The formula is correct, actually that is formula for compounding interest. You can see 5k initial investment and then 5k additional investment per month for 10 years

        Reply
  42. Hi, Ms. Fhel. Nagstart po ako mag invest ng MF Philequity Fund last July 29, 2015 lang and upon checking sa MF Portfolio, nag gain po sya (I’m using COL Financial Platform). Pero nung chineck ko yung Portfolio under Trade Menu ay nag loss ang MF ko, bakit po kaya ganun? Aling Portfolio po ba ang dapat tignan pag MF? TIA

    Reply
  43. hi ms fehl wala ko idea bout this pero nabasa ko ung site na to..pwd po mag tanong pa if mag invest po ko ng 50k wala naman na ko ibang gagawin o huhulugan monthly? saka 1f patagalin ko sya ng 10years okay lng po ba??

    Reply

Leave a Comment: