Peso Bond Funds Save the Day
While stock funds have been ravaged, bond funds—particularly UITFs—have proven more resilient
By Heinz Bulos
Peso bond funds are hands down the most popular types of investment funds in the Philippines. Perhaps it’s the generally more conservative nature of Filipino investors. As bond funds invest in safe government securities and fixed income securities from blue chip companies, returns are less volatile (although not totally immune to panic withdrawals and resulting plunge in net asset values, as evidenced a couple of years ago).
There are a lot more bond or fixed-income mutual funds and unit investment trust funds to choose from. As always, consider factors such as historical returns, fees, minimum initial investment, additional contributions, holding period, and management. Figures are as of February 16, 2009.
Download the complete PDF of the article: