Saturday, June 1, 2013

Philippine Stock Index Fund

A consistent high performer among mutual funds being offered in the trust market today is the ALFM Philippine Stock Index Fund.

Managed by the BPI Investment Management, Inc., it is offered under the BPI ALFM line of mutual funds. It was incorporated on December 11, 2002 with an authorized capitalization of P200 Million consisting of 2,000,000 shares with par value of P100.0 each share. It was launched on March 14, 2003.

As an index fund, the PSIF was designed to track the performance of the Philippine Stock Exchange Index.

Since it deals with stock shares investments, the volatility and investment risks of the stocks market directly affects the said fund.  Only investors with high risk tolerance and seeking long term capital growth and with those who wanted to track the performance of the PSEi are encouraged to invest in the said fund.

Among the Philippine Stock Index Fund’s features are the following:

Minimum Regular Initial Investment: Php10,000.00
Minimum Initial RSP Investment: Php5,000.00
Minimum Transaction Amount:  Php1,000.00
Minimum Holding Period: 180 Calendar Days
Early Redemption Penalty:  1.0% of redemption amount
Management and Advisory Fee: 1.5% per annum


The following are the historical performance of the PSIF based on the calendar year returns;

2006 – 42.29%
2007 – 21.43%
2008 – (48.29)%
2009 – 63.00%
2010 – 37.62%
2011 – 3.89%
2012 – 34.74%


As of May 31, 2013, the year-to-date returns of the PSIF is at 21.67%. Given the strong momentum of the PSIF performance at this early, it is more likely it will surpass last year’s returns of 34.75%.