More yuppies now invest in mutual funds

CEBU, Philippines - More and more young professionals are now keen on putting their hard-earned cash to other savings alternative such as mutual funds, this according to Sun Life Asset Management Company Inc., (SLAMCI).

Despite the fact that the Philippines is largely a consumption-driven economy, SLAMCI president Riena Pama said the well-informed young generation has learned to value the benefits of putting savings through alternative channels like mutual funds, aside from the regular bank savings deposits.

Pama said the company has noted a stronger interest from those below 30 years old who are getting themselves financially-wise, and mutual funds is one of the investment channels that these young people are getting into.

Mutual Fund is an investment vehicle that is made up of pooled funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

SLAMCI, one the largest fund managers in the country, is owing the evolution of internet as one of greatest influential channels among the young people to understand fully the benefit of putting their savings through legitimate and high yielding investment instrument.

 "Young people now are always on the lookout [how] to earn," she said adding that if this cultural change is going to be sustained, there’s a good chance that this will stop the cycle of financial shortage.

Although study shows that most BPO workers in particular are prioritizing gadgets, travel and shopping, a growing number of BPO employees on the other hand are now allocating a good slice of their monthly income for sound investments.

Investing into mutual funds would only require a minimum of P5,000 initial investment with at least P1 thousand subsequent investment. Unlike any bank deposit instruments, investing into long term mutual fund provides high yielding interest to investors.

Last year, SLAMCI's gross sales in Visayas and Mindanao regions grew by 121 percent from P488 million to P1 billion. Its assets under management also grew by 28 percent, contributing P2.35 billion AUM (asset under management) to the company's total AUM of P41.13 billion as of December 2013.

 "The numbers prove that more and more Filipinos in Visayas and Mindanao are warming up to the idea of investing and we are happy that they're putting their trust in SLAMCI  as they take major steps in their finances," she said.

 Currently, the company manages a total of seven funds collectively called Sun Life Prosperity Funds, which include the bond fund, balanced fund, equity fund, money market fund, GS ( government securities), dollar advantage, and dollar abundance. Its balanced fund remains to be the largest in the country, with P16.23 billion assets under management as of December 2013. (FREEMAN)