FAMI Mutual Fund Review

by Gily Tenorio on January 7, 2012

in Mutual Funds

One of the leading mutual fund companies in the Philippines today is First Metro Asset Management, Inc. or commonly known as FAMI. It is a subsidiary company of Metrobank Group that handles mutual fund investments for its customers. I’ll be giving you some review and facts about FAMI since I have mutual funds in them.

Please take note that I’m not paid to do this review or in any way connected with them. This blog post is purely  for information purposes only and past performance of the fund does not guarantee future return or profit. You should always do your own due diligence when it comes to investing in mutual funds because mutual funds are not insured by PDIC.

My Personal Experience in Investing in FAMI

I started investing in FAMI way back in January 2010. I remembered that time I bought two kinds of FAMI MF: SALEF and SALBF worth P5,000 for each type of fund and I didn’t regret when I made that decision. When I opened my MF account, I was really excited so I didn’t care the hassles of going to their office in PSBank Tower, Makati just to apply an account.

The only good thing is that the application is fast and easy because you only need to fill out application forms and some investor questionnaire similar with opening a bank account. After completing the forms and submitting the requirements, you can start investing for as low as P5,000 initial deposit of mutual fund that suits for you.

If you already have an account at FAMI and you want to buy more MF, you can see this post that I published before to give you information on how to add more funds to your account: How to Buy FAMI Mutual Funds via Metrobank Direct Internet Banking

Types of FAMI Mutual Funds

Mutual fund is a collective fund from individual and corporate investors. The fund is usually invested in stocks, bonds, special deposit accounts, treasury notes, commodities, fixed-income investments and many more. FAMI has four types of mutual funds under the brand name “Save and Learn”. The list below shows the four kinds of FAMI mutual funds that you can invest in.

1. Save and Learn Equity Fund (SALEF)

SALEF is a type of equity fund that primarily invests 100% of the fund in Philippine stocks. Normally, FAMI publishes the stocks it holds regularly through its website: www.fami.com.ph indicating the percentage of the fund invested in particular stock. Picking of stocks is done usually by the fund manager and/or other people directly involve in the fund management.

All of the information about SALEF ca be found in its prospectus which details the goal of the fund, the investment risk, the people behind the management, charges and fees for opening an account, the total amount and share price of the fund and a lot more. Therefore, it is important to read and understand the prospectus before starting to invest in any mutual funds that you want. You don’t need to read the whole prospectus, you can choose just the important one I mentioned earlier.

The minimum investment for new account is only P5,000. With the current price of P3.7893 per share, you can get 1,293 shares for the P5,000 you invested. If you invested in SALEF, it is like you invested indirectly in Philippine stock market since 100% of the fund is used to buy stocks. Check below to see the important features of SALEF.

2. Save and Learn Balanced Fund (SALBF)

SALBF is a mutual fund invested in stocks, bonds and cash deposit in banks, that’s why it is called balanced. Since investing 100% in stocks poses a high risk, a balanced fund can make it lower because bonds are considered low-risk investment. The fund objective is to provide total return to investors consisting of as high a level of current income as is consistent with the preservation of capital and liquidity and long-term capital appreciation.

SABF is suitable for investors who like investment with high growth with moderate risk to high risk and to invest in a mix of debt instruments and equity securities. SALBF has the same features as SALEF except the allocation of funds and the rate of capital return.

3. Save and Learn Fixed- Income Fund (SALFIF)

SALFIF is a fund invested in fixed-income instruments like government securities, commercial paper, corporate notes, and deposit accounts. More than half of the fund is invested in bank deposits making it the least risky among mutual funds.

The goal of this fund is to provide as high a level of current income as is consistent with preservation of capital and liquidity. SALFIF is a moderate growth and low risk investment. I owned few shares of SALFIF that I bought last June 2011 and hopefully I can add more SALFIF in the future when I have enough money to buy.

4. Save and Learn Money Market Fund (SALMMF)

SALMMF is a kind of FAMI MF invested in short-term fixed income investments like government securities, high-grade commercial papers, promissory notes, other deposit substitutes, and other fixed income instruments or securities, both in Philippine peso and foreign currency denominations.

The goal of this fund is to provide total returns composed of current income and capital appreciation. The performance of the fund is affected by several risk factors like risk in interest rate, credit risk, inflation risk, and fund’s manager risk.

Features and Facts about FAMI Mutual Fund

The features and information below are applicable for SALEF, SALBF, and SALFIF. For SALMMF, the sales load is different: for investment less than 100,000 = 1.0% sales load; 100,000 to 300,000 = 0.5%; and 300,000 and above = 0.0%. All other features are the same for all FAMI MF.

  • Base currency: Philippine peso
  • Minimum initial investment: PhP 5,000.00
  • Minimum additional investment: PhP 1,000.00
  • Management fee: 1.75%
  • Buying / Selling price: Based on the Fund’s prevailing net asset value per share
  • Sales load and redemption fees apply:
  1. 5,000 – less than 100,000 – 2.0%
  2. 100,000 – less than 500,000 – 1.5%
  3. 500,000 – less than 2,000,000 – 1.0%
  4. 2,000,000 and above – 0.5%
  • Investment Period Redemption fees:
  1. <180 days 1.0%
  2. >180 days 0.0%

Latest Fund Performance of FAMI Mutual Funds

The table below will show you the performance of FAMI mutual funds in the past one year, three years, five years and year-to-date. In choosing the best mutual fund, you should look for its return rate for the last three or five years rather than one-year data.

Net Asset Value Per Share and Growth in Valueas of January 05, 2012
Fund Name NAVPS 1 yr. Return 3 yr. Return 5 yr. Return YTD
SALEF 3.7893 7.62% 38.27% 15.64% 0.42%
SALBF 2.1307 6.26% 35.39% 0.50%
SALFF 1.6607 12.83% 9.74% 6.86% 0.11%
Fund Name NAVPS 30-day Return 60-day Return 90-day Return YTD
SALMF 1.0451 0.15% 0.22% 0.52% 0.04
*This is the percentage growth in NAVPS over the indicated time frame.

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{ 27 comments… read them below or add one }

Mary Grace August 1, 2014 at 13:28

Bro Gil thank you for this review, I decided to invest P200,000 in FAMI SALEF. Thank you for the great insight. Happy investing. I know this P200,000 will be worth millions ^_^

Reply

Gily Tenorio August 2, 2014 at 00:50

Yeah That’s good to hear.

Reply

Juan Santos November 4, 2013 at 01:06

Hello Sir Gil, thank you for educating us about investing in stock market and mutual funds, which is better sir, FAMI or Phil Equity? And which stocks are the best for long term investing?

Reply

Gily Tenorio November 25, 2013 at 02:30

Hi Juan,

I’m in favor of FAMI since I don’t have hands-on experience with Phil Equity, though it has been in the MF industry longer than FAMI.

Reply

Fructuosa P. Javier February 15, 2013 at 18:06

Hello sir Gil:
Gusto ko pong maginvest sa FAMI. Isa po akong OFW at maliit lang ang sueldo ko at isa po akong single mother. Para po sa future ng anak ko at pamilya ko. Paano po ang gagawin ko sa pagdedeposit dahil nandito po ako sa ibang bansa?
Salamat po at God Bless po.

Reply

Gil February 19, 2013 at 03:58

Hi,

Before you invest in mutual funds, study first if this is the right for you. You can learn more in this blog by visiting the mutual fund section. Anyhow, investinG in FAMI is easy. You can send your application forms and requirements through registered mail and then deposit your investment through Metrobank or PSBank.

Reply

kevin November 27, 2012 at 00:22

Hi Sir Gil,
Thank you for inspiring me to join or invest in mutual funds. I’m just curious about FAMI since I am planning to open an account. When I read the initial investment procedure at http://fami.com.ph/?page_id=2906 , and if I deposit directly at their savings account, how would they know that it came from me? What would be your certification that you have a mutual fund account? Will they send you a receipt or any paper that confirms your account?

Reply

Gil November 29, 2012 at 12:57

Hi Kevin,

Thanks for the uplifting message. You can see my post here to answer your questions> http://learnfinancialeducation.com/how-to-buy-fami-mutual-funds-via-metrobank-direct-internet-banking/ and this one: http://learnfinancialeducation.com/category/mutual-funds/

Reply

ryan April 26, 2012 at 05:52

Hi Gil,

Thank you.
I will call them for sure, I just need to familiarize myself on this mutual fund thing. Salamat sa mga kagaya mo na nagbibigay ng infos.
Just one more question, di naman kailangan ng agent para makapag-open and magdagdag ng initial investment sa FAMI right?
Thank You again.
Your article also is simple yet very informative.

Reply

Gil April 26, 2012 at 14:11

Hi, No need for the agent. You can invests directly to FAMI if you Metrobank Online banking. That’s the one I’m using.

Reply

ryan April 24, 2012 at 07:01

Do I need to go their Main Office if I wan to open a mutual funds account?
I want to have one but no idea how..
Thanks and Regards..

Reply

Gil April 24, 2012 at 21:20

Hi Ryan,

You don’t need to go to their office. You can submit all requirements, ID and forms through registered mail. You can also call them if you have other questions. Visit FAMI at http://www.fami.com.ph

Reply

dindo lopez April 14, 2012 at 08:48

hi po, willing po ako mag open ng account sa FAMI kaso wala ako sa pinas pde po ba mag open thru online?

Reply

Gil April 15, 2012 at 13:04

Hi Dindo,

Yes it is possible. Simply send your email to FAMI, visit their site for more info at http://www.fami.com.ph

Reply

JR Rosales March 11, 2012 at 05:30

Is it advisable to also invest in FAMI Fixed Income fund?

Reply

learnfe March 16, 2012 at 13:34

Hi if you want a lesser risk, you should invest in fixed-income. But I think, equity or balanced fund is enough.

Reply

Tonee January 31, 2012 at 07:10

What are the mutual funds in US dollar currency?Or is there any of this kind? (Investing in mutual funds in $) and kindly give valuable & important info – mechanics, applicable fees, etc.  

Reply

learnfe January 28, 2012 at 06:52

Hi flas, just wait for my future post about this topic. For the meantime, you can get information here: http://learnfinancialeducation.com/what-is-navps/

Reply

learnfe January 28, 2012 at 06:39

Hi, you can request it by emailing FAMI directly. Usually, the historical NAVPS is available only for investors with existing account with them.

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Mahaile_123 January 18, 2012 at 02:56

Hi! good day! i just would like to ask how to compute the YTD based on the table shown above. Can we also use that in computing kung ano na ang takbo ng investment namin?

Reply

learnfe January 21, 2012 at 00:20

Hi, you should use the latest YTD in your mutual fund company’s website to know your current profit/return of your investment.

Reply

Anonymous January 11, 2012 at 03:43

hello po!i am planning to invest and i was confused lang sa fees na babayaran.  yung sales load prang entrance fee ba yan? monthly ba ang mgt fees na 1.75%? nalito rin kasi ako nung binasa ko prospectus nila regarding fees. tapos may redemption fee rin. hindi ka ba malulugi sa mga charges na yan?

Reply

FreePinoyFinancialCheckup January 14, 2012 at 03:32

– sales load is entrance fee, yes.
– monthly ba ang management fees, no. 1.75% is for annual. It is deducted automatically and reflected already in the daily NAVPS
– redemption fee if you withdraw within 6 mos. This actually encourage investors to save for the long term
– malulugi sa charges?Mutual fund is one of the investment vehicles that performs very will (especially in Phils) dahil maganda ang fundamental ng ating economy

Reply

learnfe January 16, 2012 at 13:35

Hi FreePinoyFinancialCheckup,

Thanks for the information you shared. It will help readers and visitors.

Reply

Joel_pescasio January 8, 2012 at 00:30

gud day po..i just want to ask kung meron din po bang binibigay na dividend kung mag-invest sa FAMI? tnxpo

Reply

learnfe January 10, 2012 at 09:07

Hi Joel,

Some mutual funds give dividends like ATR Kim Eng Kabuhayan Fund.

Reply

FreePinoyFinancialCheckup January 14, 2012 at 03:35

Yes me dividend ang FAMI. Instead of giving it to investors, FAMI reinvest it to buy more shares which adds to assets ng fund, thus increasing the NAVPS of FAMI.

Reply

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