Philequity Fund: A Guide To Investing Wisely

Philequity Management, Inc. (PEMI) is an investment management company established in 1994. The company offers a range of mutual funds to help investors achieve their long-term financial objectives. Its flagship offering, the Philequity Fund, has been recognised for its outstanding investment performance and has received multiple awards for its consistent track record of excellent returns. The fund offers investors access to a diversified stock portfolio managed by experienced equity fund managers. This introduction will explore the process of investing in the Philequity Fund, including the steps to open an account, the minimum investment requirements, and the various funds available.

Understanding the risks and potential returns of investing in Philequity mutual funds

Like all investment instruments, investing in mutual funds carries a certain level of risk. When you invest in Philequity mutual funds, the value of your investment will fluctuate daily, depending on the performance of the underlying investments, such as stocks and bonds. This means that your return on investment cannot be guaranteed, and you may experience periods of losing money. However, these losses are only "paper losses" and can be recovered when market conditions improve.

Philequity fund managers employ several strategies to control and minimize risk. They conduct thorough analyses of all investments before including them in the portfolio and ensure proper diversification by investing in a wide range of stocks or bonds. This diversification helps offset potential losses, as gains in one investment may counteract losses in another. Additionally, fund managers adhere to regulatory and internal investment restrictions to avoid speculative investments and maintain proper diversification.

While Philequity mutual funds do carry risks, they also offer the potential for rewarding long-term returns. Mutual funds, including those offered by Philequity, typically outperform traditional time deposit placements over time. The key is to understand your risk tolerance and choose an investment that aligns with your risk profile.

It is important to remember that the potential for higher returns comes with greater risk. As an investor, you need to assess your risk appetite and determine how much risk you are willing and able to take. By carefully considering this balance between risk and return, you can make informed investment decisions that align with your financial goals and tolerance for risk.

Philequity Management, Inc. (PEMI) is a reputable investment management company established in 1994. They offer a range of mutual funds to help investors achieve their long-term financial objectives. Their flagship Philequity Fund, Inc. has consistently delivered outstanding returns and has been recognized for its risk-adjusted performance relative to its peers.

Choosing the right Philequity fund for your financial goals

Philequity Management Inc. (PEMI) is an investment management company that offers a range of mutual funds to help you achieve your long-term financial objectives. With various funds to choose from, it's important to understand the differences between them to select the one that aligns with your financial goals. Here's a guide to help you choose the right Philequity fund:

Philequity Fund, Inc.

The Philequity Fund, also known as PEFI, is a great option for investors who want to invest in the stock market but may not have the time or expertise to do so. This fund offers a diversified stock portfolio managed by experienced equity fund managers. It has been recognised for its outstanding investment performance and is ideal for those seeking a long-term, growth-oriented, open-ended equity mutual fund.

Philequity PSE Index Fund, Inc.

The Philequity PSE Index Fund is another long-term, growth-oriented, open-ended equity index mutual fund. This fund has been recognised for its excellent returns by the Philippine Investment Funds Association (PIFA). If you're looking for a fund with a strong track record and the ability to manage risk effectively, this could be a good choice.

Philequity Dividend Yield Fund, Inc.

The Philequity Dividend Yield Fund is a long-term, growth-oriented, open-ended equity dividend mutual fund. This fund focuses on providing returns through dividends and has been recognised for its performance in its category. If you're interested in receiving regular dividend income, this fund may align with your financial goals.

Philequity Peso Bond Fund, Inc.

The Philequity Peso Bond Fund is a conservative, long-term, open-ended bond fund. This fund is denominated in Philippine Pesos and offers a more stable investment option. If you're risk-averse and want to invest in a fund with capital preservation as a key goal, this could be a suitable choice.

Philequity Dollar Income Fund, Inc.

The Philequity Dollar Income Fund is a conservative, long-term, open-ended bond fund denominated in US Dollars. Similar to the Peso Bond Fund, this fund offers a stable investment option, but with returns in US Dollars. If you're looking for a foreign currency-denominated investment, this fund may fit your financial goals.

Philequity MSCI Philippines Index Fund, Inc.

The Philequity MSCI Philippines Index Fund is a long-term, growth-oriented, open-ended equity index mutual fund. This fund tracks the performance of the MSCI Philippines Index, offering exposure to a diversified portfolio of Philippine equities. If you're seeking to invest specifically in the Philippine market and believe in its long-term growth prospects, this fund could be a good choice.

When choosing a Philequity fund, it's important to consider your financial goals, risk tolerance, and investment horizon. Remember that mutual fund investments involve risk, and past performance does not guarantee future results. Always review the fund's features, fees, and risks before investing.

Completing the necessary account opening documents and requirements

To invest in Philequity Management Inc.'s mutual funds, you must first complete the necessary account-opening documents and meet specific requirements. Here is a detailed guide to help you through the process:

For Individual/Joint Accounts:

To open an individual or joint account with Philequity, you will need to complete the following documents:

• Account Opening Form
• Investment Application Form
• Provide one valid ID with a signature for each investor
• Submit proof of your latest billing statement that matches your present/permanent address on the Account Opening Form

If you are opening a joint account, please indicate whether it is an "OR" or "AND" account. In an "AND" account, both shareholders must sign every instruction, while only one investor's signature is required for an "OR" account.

Additionally, all account holders should provide their Tax Identification Number (TIN) in the account-opening forms.

For In-Trust-For (ITF) Accounts:

If you are opening an In-Trust-For (ITF) account, you will need to submit the following additional documents:

• In Trust For Account Form
• PSA Birth Certificate of the beneficiary

For Sole Proprietorship:

To open a sole proprietorship account, you will need to provide:

• Account Opening Form
• Investment Application Form
• One valid ID with a signature
• Certified True Copy of your DTI Certificate of Registration
• Certified True Copy of your Business Permit

For Partnerships:

If you are opening an account as a partnership, the following documents are required:

• Account Opening Form
• Investment Application Form
• One valid ID with a signature for each partner
• Certified True Copy of SEC Certificate of Registration
• Certified True Copy of Partners Agreement
• Certified True Copy of Partner's Resolution authorising investment in Philequity and authorised signatories
• Latest General Information Sheet

For Corporations:

For corporate accounts, the following documents are necessary:

• Account Opening Form
• Investment Application Form
• One valid ID with a signature for each authorised signatory, duly authenticated by the Corporate Secretary
• Certified True Copy of SEC Certificate of Registration
• Certified True Copy of Articles of Incorporation and By-Laws
• Certified True Copy of Secretary's Certificate / Board Resolution authorising investment in Philequity and authorised signatories
• Latest General Information Sheet
• Valid ID of Corporate Secretary with three signatures

For Cooperatives:

To open a cooperative account, you will need to provide:

• Account Opening Form
• Investment Application Form
• One valid ID with a signature for each authorised signatory, duly authenticated
• Certified True Copy of Certificate of Registration from the Cooperative Development Authority
• Certified True Copy of Articles of Association or Constitution and By-Laws
• Certified True Copy of Secretary's Certificate / Board Resolution authorising investment in Philequity and authorised signatories

It is important to note that these procedures apply to clients who transact directly with Philequity. If you have a distributor or agent, the processes may vary. For clarifications or further assistance, you can email Philequity at [email protected].

Making your initial investment and enrolling in the Automatic Investment Program

To make your initial investment in Philequity Management, Inc., you must first decide which fund you would like to invest in. There are several funds to choose from, including the Philequity Alpha One Fund, the Philequity Dividend Yield Fund, and the Philequity Dollar Income Fund. Each fund has its own unique features, such as investment type, custodian bank, and minimum initial investment. For example, the Philequity Alpha One Fund is a long-term, growth-oriented, open-ended equity mutual fund with a minimum initial investment of Php1 billion and a par value of Php1.00.

Once you have decided on a fund, you will need to gather and submit the required account opening documents. For individual or joint accounts, this includes an Account Opening Form, an Investment Application Form, a valid ID with a signature for each investor, and proof of your current address. If you are opening a corporate account, you will need additional documents such as a certified true copy of your SEC Certificate of Registration and a certified true copy of your Articles of Incorporation and Bylaws.

After submitting your account opening documents, you can make your initial investment by check or direct deposit to any of Philequity's accredited bank accounts. It is important to note that for investments in US dollars or to the Philequity Dollar Income Fund, it is recommended to transact your deposit with Unionbank, as their US dollar cash deposit is not subject to clearing.

To enrol in the Automatic Investment Program, you will need to accomplish an Auto-Invest Form with BDO or BPI. If you are an existing client who opened your account before 2014, you will also need to accomplish an Account Update Form and provide a copy of your valid ID with 3 signatures. These forms and documents should be submitted to the Philequity office. Please note that bank documents must be submitted as original signed forms, and digitized signatures are strictly prohibited.

Tracking your investment's performance and understanding your returns

Tracking your investments and understanding your returns is an important part of investing in the Philequity Fund. Here are some key things to keep in mind:

• Philequity Management, Inc. (PEMI) is an investment management company established in 1994 that offers a range of mutual funds to help investors achieve their long-term financial objectives.
• The value of your investment in a mutual fund may fluctuate, and returns are not guaranteed. Any gains or losses are the sole responsibility of the investor.
• To track your investment's performance, you can use the Philequity Return Calculator. Simply select the mutual fund you invested in and the date of your investment, and the calculator will tell you how long you've been invested, your actual return, and your compounded annual growth rate if applicable.
• The Return Calculator provides figures based on the change in the Net Asset Value per Share (NAVPS) of the selected fund, factoring in the annual management fee. However, it's important to note that these figures do not include sales charges such as entry or exit fees.
• Past performance of a mutual fund does not guarantee future results. Therefore, it's essential to monitor your investments regularly and stay informed about market trends and the performance of your chosen funds.
• Philequity provides comprehensive fund performance summaries on its website, allowing investors to review the historical returns and growth rates of various funds. This information can help you understand how your investments have performed over time.
• It's also important to consider the risk-adjusted performance of your investments. Philequity's funds have been recognised for their ability to manage risk relative to their peers.
• By regularly tracking your investments and understanding your returns, you can make more informed decisions about buying, holding, or selling your mutual fund investments.

Frequently asked questions