To Jump or Not

I am honestly not happy with how my FAMI-SALEF funds are performing. After two years of sporadic investing, my money grew by a measly 7% lang. Ok, so granted that this is merely an average of my entire investing history with FAMI-SALEF. Also, when I looked at the chart, my very first investment has grown by 23.18% in two years, so that's not something to be glum about. But I thought it would be more impressive, that I would open my account and do a happy dance upon seeing my gains. Or maybe I'm just expecting too much? After all, one of the speakers in the RFP* seminar said that when it comes to mutual funds, you'll start seeing stupendous gains after a decade or so of continuous investing, once you've established your critical mass.

Anyway, I've been looking around to see if I should make the switch and came out with a chart to guide me.

(Image is clickable)

FAMI-SALEF returns have been outperformed in every way by Philequity Fund that I'm super tempted to make the big switch and jump over to Philequity. The only thing holding me back for now is I don't have a BDO online account so if I switch to Philequity, I will have to make my investments through over the counter deposits. As opposed to my FAMI-SALEF which I fund using my Metrobank Direct account. 

If you read enough US or Canadian blogs then you'll be convinced that privately managed funds are inferior to index funds when it comes to performance and fees. However, such does not appear to be the case in the Philippines since the privately managed funds consistently outperform the index funds and both types of funds have high fees (compare that with Vanguard which has a ridiculous fee of 0.00005% or something like that).

Speaking of Vanguard, wouldn't it be great if we had something similar in the Philippines? That would really shake up the industry and make the fees go tumbling down. Yay! Vanguard already has a presence in Hongkong, but from my browsing, I don't think it's similar to what they have in the US because the funds work like ETFs. Anyway, it's definitely something to look into.

For now though, I'll continue to monitor FAMI-SALEF and decide the fate of my mutual funds by next year.

* Incidentally, I submitted my revised financial plan to the RFP almost two months ago and I still haven't received any feedback! So I'm assuming that it didn't make the cut, however, it would be nice if I could receive the official verdict so I can move on. Also, the RFP staff in charge takes her sweet time (about 3 weeks minimum) in responding to emails, which further adds to the aggravation. I still don't regret taking the course, but considering all of this ineptitude post-course, I should have just saved/invested my tuition fee and relied on self-study. #rantdone


edelweiza said…
You may want to give your FAMI-SALEF a few more years, baka mag-improve naman. Hehe. I'm looking into Phil Equity funds as my next investment. I started comparing mutual fund products a few months ago and they seem to be on top of their game. Hopefully, I could open an account before the month ends or early next year. I have BDO savings account so I think investing with them will be easy. :)
Jillsabs said…
Oo nga eh, it's a good solid company that's probably just experiencing some hiccups. Or maybe it changed fund managers? Who knows.

I'm interested too in BPI Equity. Ang saya-saya na management fee lang ang meron siya!

I'm thinking of getting equity funds and index funds, para diversified portfolio ang drama.
Anonymous said…
I also got myself a FAMI-SALEF account and I've had it for 4 years now. So far it grew around 18% already. I do cost averaging too, I tweaked it a bit though.

And yes, BPI Equity is interesting. I'm thinking of dipping my savings in it. :)
Jillsabs said…
How did you tweak it?
rach said…
We, too, have invested sa FAMI. I just noticed na ang bagal nga ng growth and there was a slight slump from the last time because of the dollar (kung tama ang intindi ko)... and I have to also comment about the customer service... Bakit ganun? Double Fail!!

I might look into BPI din... mukhang promising nga.
Tessa Antonio said…
Hi Ma'am Jill, have you already switched to Philequity? Been thinking the same here, checking on the pros and cons ( cust serv, fees, performance, accessibility...).

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