FAQs

Mutual funds are investment opportunities that give you better returns compared to a bank’s time deposit. Mutual funds can be divided into four distinct types: bond funds, equity funds, balanced funds and money market funds. When you invest in a mutual fund, you get instant diversification for your cash. What’s more, mutual funds require only a minimal investment and the gains you get are tax-exempt.

Just like the old saying “don’t put all your eggs in one basket,” diversity is important so that you take less risk for your finances. By diversifying, your risk is spread out to different investments, allowing you to get potential high returns without taking additional risks.

Mutual fund shares can be bought through the Certified Investment Solicitors (CIS), which are licensed by the SEC. ALFM Mutual Fund shares are distributed via BPI Investment Management, Inc., BPI Capital Corporation and BPI Securities Corporation. You can buy shares at any BPI or BPI Family Savings Bank branches throughout the country.

Your investment can be tracked via the Net Asset Value per share (NAVps). The NAVps is the current price of a mutual fund share. It changes daily and is calculated at the end of the trading day. To get the NAVps, the net of the fund’s total assets minus its liabilities is divided to the number of outstanding shares. The NAVps of a mutual fund is based on the current market price of the fund’s assets and liabilities. The valuation used is called Marked-to-market. It measures the fair market value of the fund’s assets and liabilities providing a realistic appraisal of the mutual fund company’s current financial situation. The fair market value of assets changes daily depending on market sentiment.

Each mutual fund is compared to a benchmark to see how it is performing. The objective of the mutual fund is to give better returns than its benchmark.

The Fund Manager pools together the amount invested by various investors to form a massive asset base. The Fund Manager then uses the accumulated asset base to buy securities in accordance with the Fund’s investment objectives. For Fixed Income investments, the Fund earns periodic interest payments until maturity. For Equity investments, the Fund’s NAVPS appreciation/depreciation is dependent on the performance of its underlying stock / equity holdings. Investments, therefore, in Mutual Funds are valued at their prevailing market performance. Returns are not guaranteed and capital preservation is not assured.

You may avail ALFM Mutual funds through our accredited distributors.