Sun Life mutual fund lets you invest indirectly in the stock market. For as low as Php 1,000 monthly, you can already open an account and choose an investment fund that suits your risk appetite.
Here’s a quick video presentation on how mutual funds work and how you can open an account.
The information in the video is in general. That’s why today, I am going to share with you the detailed information about the following:
- What is a mutual fund?
- What is the difference between Mutual Fund and UITF?
- Why start a mutual fund?
- How to choose an investment fund?
- What are the applicable charges in Sun Life mutual fund?
- What are the requirements in opening a Sun Life mutual fund account?
- How can I add more funds to my Sun Life mutual fund account?
Are you ready to make a change in your financial situation today? Just keep reading. 🙂
I. What is a Mutual Fund?
A mutual fund is an investment company that pools money from different investors. These pooled funds are invested by professional fund managers in various securities according to its investment objectives and policies of the company.
If you bought shares from a mutual fund company, you become a shareholder of it. In addition, it gives you the entitlement for dividends (not guaranteed) and voting rights.
II. What is the difference between a Mutual Fund and UITF?
A Mutual Fund and a Unit Investment Trust Fund (UITF) seems to be similar but they are actually different in some ways. Here’s a table presentation between the two.
|✅Pooled Funds||✅Pooled Funds|
|✅Managed by professional investment managers||✅Managed by professional investment managers|
|✅Net Asset Value per share (NAVPS)||✅Net Asset Value per unit (NAVPU)|
|✅Common shares||✅Units of participation|
|✅Has voting rights||✅No voting rights|
|✅Funds are managed by Fund Managers||✅Funds are managed by Bank's Trust Department|
|✅Distributed by Mutual Fund companies and Certified Investment Solicitors||✅Distributed by Bank Accredited Sales Frontliners|
|✅Regulated by SEC||✅Regulated by BSP|
|✅Minimum initial investment is Php 1,000||✅Minimum initial investment is Php 10,000|
|✅You can open an account thru the Mutual Fund company or Certified Investment Solicitors||✅You can open an account thru Banks that offer UITF|
|✅ Charges include sales load fee either upon placement or redemption||✅An exit fee is charged if redeemed prior to the completion of the minimum holding period|
Both financial instruments are valued depending on market prices, therefore, returns are not guaranteed nor capital preservation.
Also, investments in mutual funds and UITF are not insured. But gains realized from the redemption of shares in mutual funds are tax exempted.
III. Why Start a Mutual Fund?
Personally, I recommend you start investing in a mutual fund if you don’t have the time to study and analyze the stock market and individual stocks. I started investing here in 2017 and Sun Life mutual fund just provided me flexible investment options. This made me more motivated to invest habitually for my future.
Here are some reasons why you should start investing in a Mutual Fund:
- Professional Management – you enjoy the services of professional investment managers whose services are normally available only to high net worth individuals or big corporations. They study and analyze the market and various investment products on behalf of the shareholders so they can give the best possible returns to them
- Low Capital Requirement – for as low as Php 1,000 monthly, you can already start investing in Sun Life mutual fund.
- Diversification – you achieve instant diversification in a mutual fund because it is invested in a wide array of issues and/or securities.
- Liquidity – mutual funds stands ready to buy back your shares at prevailing NAVPS. The redemption proceeds will be given within 7 banking days from the date of redemption. Sometimes, it can be as fast as the next banking day.
- Safety – mutual funds are highly regulated by the Securities and Exchange Commission (SEC).
- Potentially Higher Returns – since the mutual fund is managed in a single portfolio, it is able to take advantage of certain economies of scale.
- Convenience – flexible ways to add more funds and buy more shares thru mutual funds
- Flexibility – clients are allowed to apply investment strategies over time by switching of funds within the mutual fund family
IV. How to choose an investment fund?
Choosing a fund can be based on how deep your knowledge is when it comes to investments. It should be appropriate to your risk appetite and investment time horizon. When you open an account, you need to answer a set of questions that will determine what type of investor you are.
The following are the different peso-denominated investment funds of Sun Life Mutual Fund you can choose from.
|Type of Fund||Investment Objective||Where your Money is Invested in||Risk Appetite||Minimum Investment||Minimum Additional Investment|
|Money Market Fund||I just want to leave my cash for a short period of time and earn from it, too.||Invested in special savings accounts.||Conservative||Php 100||Php 100|
|GS (Government Securities) Fund||I want my money to earn but my investment should be kept intact.||Invests mainly in government debt securities.||Conservative||Php 1,000||Php 1,000|
|Bond Fund||I want my money to earn but my investment should be kept relatively stable.||Invests in government and high-quality corporate debt securities.||Moderately Conservative||Php 1,000||Php 1,000|
|Balanced Fund||I want my money to earn more and I can afford to lose some of my investment for a higher return.||Invests in a mix of high-quality debt and equity securities.||Somewhat between Conservative & Risky||Php 1,000||Php 1,000|
|Dynamic Fund||I want to maximize the potential of my money through an aggressive fund that has the flexibility of switching to a defensive strategy during bearish market conditions.||Invest in potentially higher yielding equity and/or debt securities.||Moderate to high-risk appetite.||Php 1,000||Php 1,000|
|Philippine Equity Fund||I want to maximize the potential of my money for a higher return over the long term.||Invests mainly in high-quality equity securities.||High-risk appetite||Php 1,000||Php 1,000|
|Philippine Index Fund||I want my money invested in a broadly diversified portfolio while tracking the performance of the Philippine Stock Exchange Index (PSEi).||Invests in securities that constitute the PSEi at their index weights.||High-risk tolerance.||Php 1,000||Php 1,000|
For the dollar ones, click here.
V. What are the applicable charges in Sun Life mutual fund?
Your investment is subject to a sales load fee. In Sun Life, you have two options: Front-End (FE) load or Back-End (BE) load.
- Front-End load – charged upon placement of funds. It applies every time you place additional funds to your Sun Life mutual fund.
2. Back-End load – charged upon redemption of shares. It allows your money to be invested without charges upon placement. Therefore, it will only be applied when you want to withdraw your funds already.
VI. What are the requirements in opening a Sun Life mutual fund account?
Some forms that are required in opening a Sun Life mutual fund account are already downloadable from the Sun Life website. That includes:
|Mandatory Requirements||Conditional Requirements|
|✅Account Opening Form||✅Application for Additional Co-Investor|
|✅Proxy Form||✅Confirmation of In-Trust-For (ITF) Arrangement|
|✅Authority to Transact|
|✅Application for Reduced Sales Load|
|✅Auto-Invest Enrollment Form|
See reference here.
Aside from the forms, you also need to provide the following when you open an account.
- Photocopy of your valid ID (government-issued IDs are preferred)
- Initial Investment (minimum of Php 1,000 or USD 1,000)
You may pay the initial investment in cash or thru bank transfer/deposit. You just need to submit the original deposit slip or print the screenshot of the transaction. In addition, you can also pay in check under the payee’s name of SLAMCI or Sun Life Asset Management Company, Inc.
You may deposit your initial investment to the following SLAMCI bank accounts.
VII. How can I add more funds to my Sun Life mutual fund account?
There are many flexible ways on how you can place more funds to your Sun Life mutual fund account. For this particular topic, I have made a separate post that includes the step-by-step processes of how you can add more funds to your mutual fund account.
So there you have it! I hope this article has been very helpful to you so you can decide what investment to get this 2019.
I’m excited for you on taking more steps towards the #BrighterLife! If you want to get started with Sun Life mutual fund, just fill up the form below so I can assist you in opening an account. Talk to you soon!
Your Financial Advisor for Life,
Christine Caranyagan, CISReach me out thru:
Christine Caranyagan, Licensed Financial Advisor & a Certified Investment Solicitor (CIS)
Sun Life of Canada Philippines, Inc.
My mission is to help fellow Filipino people achieve lifetime financial security & healthier lives.
If you want to learn more about financial planning, I conduct it for FREE. Our office is located at 15F Frabelle Business Center 111 Rada Street, Legaspi Village Makati City.
Or you can just reach me thru this number: 0935 7368 619 or email me at email@example.com to set an appointment.
It will be my pleasure to be your Financial Advisor for Life.