Confused in which fund you want your money get invested? Here’s a quick overview of their definition and how it is invested.
These are fixed-income instruments that give minimal risk of losing your money. Money is invested primarily in bonds such as treasury notes issued by the Philippine government and commercial papers issued by reputable companies in the country. It is more focused on capital preservation and classified as low-risk investment fund.
Money Market Fund
These are instruments that are close to maturity. Meaning they are short-term placements for one year or less that are used for “parking purposes”. The fund offers low interest but still higher than what banks offer. It is also focused on capital preservation and classified as low-risk investment fund.
This type of fund maximizes returns of both the equity and bond fund. It is a combination of an aggressive type of fund which is the equity and a conservative one, bond fund. Investors have medium to long-term goal for this fund. Funds are not equally divided and managers usually depend on the performance of the market. The allocation may vary from 35% to 65% with each fund. It is more of capital growth and classified as medium risk investment.
My Future Fund
It is a target dated fund wherein money is invested in the aggressive type of fund during the first few years and later preserve it in conservative fund 5 years before fund’s maturity. The main goal of the fund is capital appreciation at the same time preservation of realized returns during later years. Investors also have medium to long term goal for this fund and classified as medium risk investment.
An aggressive type of fund mainly invested in high quality of stocks in the market that are diversified across sectors. Investors have long-term goals for this fund and accept the volatility of the fund. It is focused on capital appreciation and classified as high-risk investment.
Growth Plus Fund
It is another aggressive type of fund investing in a portfolio of high-quality equity and equity-linked securities which yield dividends. This means that if a company has earnings, they also give a part of their earnings to investors. Investors also have a long-term goal for this fund. It is focused on capital appreciation and classified as high-risk investment.
This is a type of equity fund mimics the movement of Philippine Stock Exchange Index (PSEi). The fund is invested primarily in common stocks, mainly from the 30 listed blue-chip companies that comprise the PSEi. It allows you to take advantage of the upside potential of our Philippine Equity market. Investors also have long-term goal for this fund. It is focused on capital appreciation and classified as high-risk investment.
Another type of equity fund investing in a portfolio of high-quality equity and equity-linked securities diversified across sectors generally considered as Industry Captains. The fund is composed of holding companies of these Industry Captains with major controlling interests in the Philippines. Some of them are Henry Sy, Lucio Tan, John Gokongwei and George Ty. Investors also have long-term goal for this fund. It is focused on capital appreciation and classified as high-risk investment.
Congratulations! You are now familiar with the VUL funds of Sun Life. I hope these information add up to your adrenaline of getting your money invested. But wait, do you already know the level of risk tolerance you can take? If not yet, better know it first here.[insert link]
Make your money work for you as early as now. Need help? Click here and let’s start funding your future. Happy investing!
Your financial advisor for life,
Christine Caranyagan is a Certified Investment Solicitor (CIS), Associate Wealth Planner (AWP), Estate Planner (AEPP), and Agency Leader of the Philippines (AALP). She’s a 2019-2020 Macaulay Club Awardee, and a 5x Medallion Qualifier as a Licensed Financial Advisor.
Her mission is to help fellow Filipino people achieve lifetime financial security & healthier lives.
If you want to learn more about financial planning, you can contact her thru her personal contact number 0935 7368 619, or send her a message here.