What are Index Funds?
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Index funds are mutual funds that are intended to track the returns of a market index. An index is a group of securities that represents a particular segment of the market (stock market, bond market, etc.). It doesn't require an active manager (i.e. it is a passive investment). It simply tracks an index.
Where can I invest in Index Funds in the Philippines?
The Philippine Index Fund (PIF) is actually also a mutual fund that tracks the Phisix, QQQ or cubes, Spiders, Diamonds and the likes so it is priced just like the mutual funds. The article below provides more information about the Philippine Index fund also known as PIP.
Riding It High With Philippine Index Fund
By Vernadette Joven
Looking for a hassle-free, low-cost, flexible and diverse range investment? Philippine Index Fund (PIF) is just the answer for you. The country's first and only index tracker fund that aims to provide an alternative for investors who believe in the potential of the stock market while enjoying a risk diversity and low entry cost.
According to Philippine Stock Exchange Composite Index (PHISIX) officials, PIF sends a strong signal to the investing public that the stock market is really a worthy investment.
As a flexible, multipurpose investment, PIF creates a broader awareness on equity investing among small individual investors. These investors will be a large retail market of long-term equity investors that will help increase the savings rate of the country, if proper strategies are pursued and implemented.
With a minimum investment of only P50,000 during the initial offer period, investors are effectively investing in a diversified portfolio of 33 stocks comprising PHISIX. Aside from the minimum initial investment amount, investors also get to enjoy trading in the market without the hassle of daily individual stock monitoring.
Investment experts say that the general outlook on the stock market remains positive as long as the following indicators are followed: strong evidence of improved fiscal deficit management, stability in the local currency, stable interest rate environment, strong corporate earnings growth, resurgence of foreign funds inflow in the local bourse and the passage of revenue generating tax laws, which is expected to improve the government's fiscal position.
What companies are included in the Index Fund?
You may view the MSCI Philippines Investable Market Index Fund here.