Local fund management firm Philequity Management Inc. has rolled out a new mutual fund that puts its best stock market picks into one basket, aiming to outperform the local stock barometer Philippine Stock Exchange index (PSEi).
The new fund, Philequity Alpha One Fund, is designed for investors who are willing to take on more risk in exchange for higher return, Philequity said in a note to investors.
The seventh in Philequity’s portfolio of mutual funds, Philequity Alpha One Fund is a long-term, growth-oriented and open-ended equity mutual fund.
“Instead of copying the index, Alpha One will be composed of Philequity’s best stock picks. By having a more concentrated and actively traded portfolio, the Alpha One Fund intends to generate significant outperformance over its benchmark,” the company said.
In 2019, the benchmark PSEi gained 349.24 points or 4.7 percent to finish the year at 7,815.26.
The new fund is offered for a minimum initial investment of P1,000 while minimum additional investment is 5 percent.
Philequity’s annual management fee for this new fund is 1.5 percent a year.
Minimum holding period is 90 days. For investors who will exit in less than 90 days, there is a fee of 1 percent.
Established in 1994, Philequity offers an array of mutual funds suited to investors’ unique needs.
Other mutual funds in its portfolio are Philequity Fund, Philequity PSE Index Fund, Philequity Dividend Yield Fund, Philequity Peso Bond Fund, Philequity Dollar Income Fund and Philequity MSCI Philippines Index Fund.
Mutual funds are created by financial experts to help investors who have no time or expertise to manage their own portfolio. Investors are seen to benefit from diversification and professional management.