Category: Family

I have been an investor in high-risk assets like the stock market and equity/index funds for quite some time now. These are where I believe my money will grow significantly over time and they should be able to help me achieve my long-term financial goals.

But since equities are a volatile type of investment, I may incur paper losses along the way. And even though I know there will be no actual loss of money unless I redeem, I had to look for another option to somehow provide me a defensive wall against crashes and dips of the stock market.

I thought of investing in bonds to address my diversification needs of my portfolio. However, since most of my cash is invested in equities, businesses, and real estate, investing directly in bonds would require me to shell out at least P100,000. And I can’t afford to liquidate my equity investments in order to invest in bonds.

Good thing I found an alternative to direct bond investing for smaller investors like me.

I went to my BPI branch in Lipa City Highway and was able to meet Ms. Kyra Rivera of BPI Investment Management Inc. (BIMI) who introduced me to the different investment products they are offering under the ALFM Mutual Funds. Apparently, BIMI is the fund manager of ALFM Mutual Funds and is 100% fully-owned by BPI.

I explained to Ms. Kyra that I have been wanting to invest directly in bonds but I have limited amount of cash. She told me about the ALFM Peso Bond Fund and I thought it is a much better investment option for me. I decided to open an ALFM Peso Bond Fund account right away.

**For those who want to know how to invest in ALFM Peso Bond Fund, the first thing you will have to do is to approach a Mutual Funds Investment Counselor like Ms. Kyra.

But before you can have an ALFM Peso Bond Fund account, you will be required to answer the Client Suitability Assessment form in order for them to know what type of investor you are.

 

They will provide you a recommended portfolio allocation based on the result of the client suitability assessment and you will then decide whether to agree on the recommended allocation or to create your own allocation.

 

While there are more popular investments like professionally-managed equity or index funds, there are also bond funds who are suited for moderately conservative investors. Ms. Kyra explained that moderately conservative investors who have limited investing budget can gain diversification in bond funds like the ALFM Peso Bond Fund.

When you invest in ALFM Peso Bond Fund, your money will be invested in different fixed income instruments like treasury bills and corporate bonds.

In my case, the assessment result showed that I am an aggressive investor because I am already exposed and invested in the stock market and other high-risk instruments. But since I wanted to diversify my portfolio further, I still pursued my desire to invest in ALFM Peso Bond Fund.

So I filled out a set of account opening forms. Kyra received and gave me the client’s copy of the forms I signed and informed me that the account will be opened at the BIMI Head Office. That fast and I am already an ALFM Peso Bond Fund investor!

 

Why I Chose the ALFM Peso Bond Fund

Considered as the largest mutual fund in the Philippines, I chose ALFM Peso Bond Fund because it carries these awesome features.

1. Affordability

You can start for as low as P5,000, then add P1,000 for succeeding investments anytime. There is no required monthly additional investment. This is very ideal for those who already have savings and want to earn a little more than what they can from traditional deposit products.

2. Shorter Holding Period

Unlike in direct bond investing where your capital will have to wait for at least a year before you can redeem it, ALFM Peso Bond Fund‘s holding period is just 180 days. It has no maturity date unlike in direct bond investing. This means more liquidity for you while opting to invest for the long term.

3. FREE Life Insurance!

When you invest in ALFM Peso Bond Fund, you are entitled to have a P200,000 worth of life insurance**. This free insurance rivals VULs or variable unit linked insurance products offered in the market. The returns are net and gives real returns to the client. There are no hidden premium fees or charges, unlike in a VUL where in there are costs and premium fees.

**A primary investor will only be entitled to the P200,000 life insurance if the ALFM Peso Bond Fund account is worth at least P100,000. It is also not automatic. An ALFM Peso Bond Fund investor will have to fill out the Individual Application for Group Term Life Insurance to avail this feature.

4. Accessibility & Convenience

The good thing about investing in ALFM is that it is linked in the online banking facility of BPI Express Online and BPI Express Mobile App. You just need to enroll your investment account online, then you can already view your portfolio and subscribe or redeem investments, in your PCs or mobile phones.

Ms. Kyra also discussed the Regular Subscription Plan, which really got me interested. It is an auto-invest facility, wherein you can make scheduled contributions to your mutual fund monthly or quarterly for as low as P1,000. For those who want to really invest consistently, like me, you might as well enroll in this facility.

 

If you have been looking for wiser investment vehicles that are safer than investing in equities, the ALFM Peso Bond Fund is the right option for you. Make your cash flow less stressful and your investment more enjoyable by choosing the ALFM Peso Bond Fund.

Schedule a call with a Mutual Funds Investment Counselor by visiting any BPI or BPI Family Savings Bank branch to know more about the ALFM Peso Bond Fund and other ALFM Mutual Funds today! You can also log on to www.alfmmutualfunds.com or visit www.facebook.com/ALFMMutualFunds for more details.

*This is a sponsored post.