Bpi Mutual Fund Investment: A Step-By-Step Guide

BPI offers a wide range of investment funds for customers to choose from, including mutual funds. The bank provides a variety of investment options, such as unit investment trust funds, corporate and government bonds, and stock investments. BPI's mutual funds are known as ALFM Mutual Funds, which offer six different fund types catering to various investment objectives and risk tolerances.

Before investing in mutual funds, it is essential to understand your financial goals and risk tolerance. BPI provides resources for beginners, helping them learn about investing and make informed decisions. The bank also offers digital tools, such as the BPI Mobile app, making it convenient for customers to open investment accounts and start their investment journey.

BPI Investment Funds: types, risk factors and financial goals

BPI offers a wide range of investment funds to help customers achieve their financial goals. The bank provides investment options for various risk profiles, allowing customers to choose funds that align with their risk tolerance and financial objectives. Here is an overview of the types of BPI Investment Funds, the associated risk factors, and how they can help you achieve your financial goals.

Types of BPI Investment Funds

BPI offers a variety of investment funds, including Unit Investment Trust Funds (UITFs) and Mutual Funds. Here are some examples of the specific funds they offer:

• BPI Money Market Fund
• BPI US Dollar Short Term Fund
• BPI Premium Bond Fund
• BPI Sustainable Global Bond Fund-of-Funds
• BPI Philippine High Dividend Equity Fund
• BPI Equity Value Fund
• BPI Philippine Equity Index Fund
• BPI Global Equity Fund-of-Funds
• BPI US Equity Index Feeder Fund
• ALFM Money Market Fund
• ALFM Dollar Bond Fund
• ALFM Global Multi-Asset Income Fund

Risk Factors

When investing in BPI funds, it's important to consider your risk tolerance. BPI categorizes its funds based on different risk profiles, including conservative, moderately conservative, moderate, moderately aggressive, and aggressive. Here's a breakdown of what each category entails:

• Conservative/Moderately Conservative: These funds are for investors who want to minimize risk while earning steady returns. They are ideal for those who prioritize lower risk over higher returns and are willing to accept modest growth rates. Examples include the BPI Invest Short Term Fund and the BPI Invest Money Market Fund.
• Moderate/Moderately Aggressive: These funds suit investors who are comfortable with taking on some risk to increase their portfolio's value over the medium to long term. They can tolerate temporary price fluctuations in pursuit of higher returns. Examples include the BPI Invest Global Bond Fund-of-Funds and the ABF Philippines Bond Index Fund.
• Aggressive: These funds are designed for investors who are willing to take on a higher level of risk, including the possibility of negative fluctuations and losses, in exchange for the potential of superior returns. Examples include the BPI Philippine High Dividend Equity Fund and the BPI Global Equity Fund-of-Funds.

Financial Goals

When investing in BPI funds, it's essential to align your investments with your financial goals. Here are some ways BPI Investment Funds can help you achieve your financial objectives:

• Conservative/Moderately Conservative Funds: These funds are suitable for investors who prioritize capital preservation and steady returns. They are ideal for short-term financial goals or for those who are risk-averse.
• Moderate/Moderately Aggressive Funds: These funds offer a balance between capital preservation and growth. They are suitable for investors with medium to long-term financial goals, such as saving for a down payment on a house or funding a child's education.
• Aggressive Funds: These funds are designed for investors seeking higher returns over the long term. They are suitable for those with a higher risk tolerance and longer investment horizons, such as retirement planning or significant wealth accumulation.

BPI Mutual Funds: how to open an account

BPI offers a wide range of investment funds for customers to choose from. These include Unit Investment Trust Funds (UITFs) and mutual funds.

How to Open a BPI Mutual Fund Account

To open a BPI mutual fund account, you can follow these steps:

• Download the BPI Mobile app: You can conveniently open a BPI investment account through their mobile app.
• Initial Subscription: To start investing in BPI mutual funds, you will need to make an initial subscription to any of the participating BPI Investment Funds. The minimum initial subscription amount is Php 1,000 or USD 100.
• Rewards Program: You can also download and sign up for VYBE to join the BPI Rewards program. This is optional but can provide you with benefits and promotions.
• Risk Profile: Before investing, it is important to assess your risk profile. BPI offers funds for conservative, moderate, and aggressive investors. Your risk tolerance will depend on your financial goals, investment horizon, and comfort with market fluctuations.
• Seek Advice: If you are unsure about which funds to invest in, you can contact a BPI Mutual Funds Sales Agent. They can advise you on the benefits, risks, and features of different mutual funds to help you create a diversified investment portfolio.
• Other Requirements: BPI may have additional requirements and documentation that you need to provide. You can contact their 24-hour BPI Contact Center at (+632) 889-10000 for more information.

By following these steps, you can open a BPI Mutual Fund account and start investing towards your financial goals. Remember to carefully consider your investment objectives and risk tolerance before committing to any investment.

BPI Mutual Funds: fees and charges

BPI offers a wide range of investment funds, including Unit Investment Trust Funds (UITFs) and mutual funds. While specific fees and charges are not publicly available, there are some general fees associated with BPI investment funds. Here is an overview of the fees and charges you can expect when investing in BPI Mutual Funds:

Minimum Initial Investment

To start investing in BPI Mutual Funds, you need to meet the minimum initial investment requirement. The minimum amount may vary depending on the specific fund, but it is typically a low amount, such as Php 1,000 or USD 100. This minimum initial investment requirement is the same for both UITFs and mutual funds offered by BPI.

Service (Administration) Fee

BPI charges a service or administration fee on certain investments. This fee is calculated as a percentage of the face value of the investment and is typically charged annually. The specific rate may depend on the size of your investment and the frequency of coupon payments.

Transaction Fees

BPI may charge transaction fees for certain types of transactions, such as the purchase and sale of securities. These fees can vary depending on the type of security and the transaction involved. For example, there may be fees for non-trade transfers of securities or requests for certification.

Early Redemption Penalty

While not specified, some BPI investment funds mention that there are no early redemption penalties. This means that you can withdraw your investment at any time without incurring additional charges or penalties. However, it is always a good idea to review the specific terms and conditions of your chosen investment fund to understand any potential fees or charges.

Regular Subscription Plan (RSP)

BPI offers a Regular Subscription Plan (RSP) that allows you to build your wealth over time. Through this plan, you can automatically top up your investments in BPI Mutual Funds on a monthly or quarterly basis. The minimum amount for the RSP is as low as Php 1,000, making it accessible for investors to start building their investment portfolio.

It is important to note that the fees and charges mentioned above may not be exhaustive, and there could be other costs associated with investing in BPI Mutual Funds. It is recommended to carefully review the prospectus or offering documents of the specific BPI Mutual Fund you are interested in to understand all the associated fees and charges. Additionally, you can contact BPI's 24-hour hotline or email their customer support for more detailed information.

BPI Mutual Funds: investment options

BPI offers a wide range of investment funds for customers with different financial goals and risk tolerances. Here is an overview of some of the key BPI Mutual Funds investment options:

Conservative / Moderately Conservative Funds:

• BPI Invest Short-Term Fund: A Money Market Fund with a PHP 10,000 initial investment and a 0.50% Trust Fee.
• BPI Invest Money Market Fund: Another Money Market Fund option, requiring a PHP 10,000 initial investment and charging a 0.25% Trust Fee.
• BPI Invest Premium Bond Fund: An Intermediate Bond Fund with a PHP 10,000 initial investment and a 1.50% Trust Fee.
• BPI US Dollar Short Term Fund: A Money Market Fund denominated in US Dollars, requiring a USD 500 initial investment and charging a 0.50% Trust Fee.

Moderate / Moderately Aggressive Funds:

• BPI Global Bond Fund-of-Funds: A Bond Fund-of-Funds requiring a USD 500 initial investment and charging a 0.75% Trust Fee.
• ABF Philippines Bond Index Fund: A Bond Index Fund with a PHP 10,000 initial investment, a 0.08% Trust Fee, and a 0.186% Management Fee.

Aggressive Funds:

• BPI Balanced Fund: This fund has a PHP 10,000 initial investment and a 1.50% Trust Fee.
• BPI Equity Value Fund: An Equity Fund with a PHP 10,000 initial investment and a 1.50% Trust Fee.
• BPI Philippine High Dividend Equity Fund: Another Equity Fund option, requiring a PHP 10,000 initial investment and charging a 1.50% Trust Fee.
• BPI Philippine Equity Index Fund: This Equity Index Fund has a PHP 10,000 initial investment and a 1.00% Trust Fee.
• BPI Global Equity Fund-of-Funds: An Equity Fund-of-Funds requiring a USD 500 initial investment and charging a 1.50% Trust Fee.
• BPI European Equity Feeder Fund: A European Equity Feeder Fund with a USD 1,000 initial investment and a 0.75% Trust Fee.

These are just a few examples of the many investment funds offered by BPI. It is important to carefully consider your financial goals, risk tolerance, and investment objectives when choosing a fund. BPI offers a range of funds to suit different investor profiles, so be sure to review the options and seek expert financial advice before making any investment decisions.

BPI Mutual Funds: investment portfolio

BPI offers a wide range of investment funds for customers with different financial goals and risk tolerances. Here is an overview of the BPI Mutual Funds investment portfolio:

Conservative / Moderately Conservative Funds:

These funds are suitable for investors who want to minimize risk while earning steady returns. Examples include:

• BPI Invest Short-Term Fund: A Money Market Fund with an initial investment requirement of PHP 10,000 and a trust fee of 0.50%.
• BPI Invest Money Market Fund: Another Money Market Fund with the same initial investment requirement of PHP 10,000 but a lower trust fee of 0.25%.
• BPI Premium Bond Fund: An Intermediate Bond Fund with an initial investment of PHP 10,000 and a trust fee of 1.50%.
• BPI US Dollar Short-Term Fund: A Money Market Fund denominated in US dollars, requiring an initial investment of USD 500 and charging a 0.50% trust fee.

Moderate / Moderately Aggressive Funds:

These funds cater to moderate-risk investors who aim for long-term growth and are willing to accept temporary price fluctuations. Examples from this category include:

• BPI Global Bond Fund-of-Funds: A Bond Fund-of-Funds with an initial investment requirement of USD 500 and a trust fee of 0.75%.
• ABF Philippines Bond Index Fund: A Bond Index Fund that tracks the iBoxx ABF Philippines Bond Index. It has an initial investment requirement of PHP 10,000, a trust fee of 0.08%, and a management fee of 0.186%.

Aggressive Funds:

These funds are designed for investors who are comfortable with higher risk and potential negative fluctuations in returns, seeking superior long-term gains. Some examples of aggressive funds offered by BPI include:

• BPI Philippine High Dividend Equity Fund: An Equity Fund with an initial investment requirement of PHP 10,000 and a trust fee of 1.50%.
• BPI Philippine Equity Index Fund: This Equity Index Fund mirrors the performance of the Philippine Stock Exchange Index (PSEi). It has an initial investment requirement of PHP 10,000 and a trust fee of 1.00%.
• BPI Global Equity Fund-of-Funds: An Equity Fund-of-Funds denominated in US dollars, requiring an initial investment of USD 500 and charging a 1.50% trust fee.
• BPI European Equity Feeder Fund: A Feeder Fund investing in European equities, with an initial investment requirement of USD 1,000 and a trust fee of 0.75%.

BPI's Mutual Funds Offer Flexibility:

BPI allows investors to create a diversified investment portfolio by investing in multiple funds with varying amounts, depending on their risk tolerance. The bank also provides expert financial advice to help customers make informed decisions about their investments.

Frequently asked questions