Top 33 Best Performing Index Funds in the Philippines in 2023 (2024)

FAQs

Which index fund is best for 2023? ›

Apart from the foregoing strong contenders for FDIs into the Philippines in the coming years, other promising areas of investment are real estate, healthcare, manufacturing, financial services and tourism, among others. This article was published in Feb 2023 issue of IHC Magazine.

📈 Long-Term Bonds

These are securities that usually come with a 20 to 30-year term. They can be in the form of corporate bonds, government bonds, and even international bonds. Long-term bonds are considered one of the best investments in the Philippines because of the potentially high-interest yields.

The average value for the Philippines during that period was 9.06 percent with a minimum of -30.47 percent in 1998 and a maximum of 60.82 percent in 1994. The latest value from 2021 is 7.82 percent.

ADB's flagship economic publication Asian Development Outlook (ADO) April 2023 forecasts the Philippine economy to grow by 6.0% this year, climbing further by 6.2% in 2024.

The Bank continued to see the 2023 headline rate averaging above the 2.0–4.0% target band. Lastly, risks remained skewed to the upside, with rising transport and electricity prices, supply shortages affecting domestic food prices and above-average wage adjustments clouding the inflation outlook significantly.

Philippines Lifts Key Interest Rate to 6.25%

The latest inflation rate was still well-above the policymakers' target of 2%-4%. Meanwhile, the inflation forecasts were both revised lower for 2023, expecting an average of 6% (vs 6.1% previously) and for 2024 at 2.9% (vs 3.1%).

CIMB Bank PH

CIMB has the highest interest rate among all available banks with 2.5% to 4% interest rate. CIMB Philippines provides an all-digital banking experience: from applications, to deposits, and withdrawals.

Who has the highest deposit interest rate in the Philippines? ›

Best Investments in the Philippines for 2023

An investment strategy ranges from low-risk selections like certificates of deposit and money market funds to medium-risk ones like corporate bonds and sometimes even higher-risk ones like stock index funds.

Since the S&P 500 is simply a measure of its underlying stocks' performance, you can't invest in it directly—instead, you can invest with an index fund or ETF that strives to match the performance of the market index. An index fund is a basket of hundreds of stocks, securities, and other assets within a single fund.

The Philippine Stock Index Fund is a long-term investment outlet that allows you to diversify your money in a mix of domestic stocks. The Fund aims to mirror the performance of the Philippine Stock Exchange Index (PSEi).

While the index is not immune to overall market downturns, long-term investors have historically earned a nearly 10% average annual return. However, as with all investments, it's important to note that past performance can't be used to predict future results.

High-quality bonds and fixed indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.

What is the best performing asset class in 2023? ›

BTC ranks as the best performing asset and has vastly outpaced the current 5.5% of the 2023 performance of the S&P 500.

Key challenges face the country: significantly high unemployment numbers; a high inflation rate (forecast to reach 5.1 percent in 2023); rising policy rates; import and export bottlenecks; and the declining strength of the Philippine peso against the American dollar. ¹.

The Philippines economy grew at a pace of 7.6% in 2022, the fastest rate of economic growth recorded by the Philippines since 1976. The rapid pace of economic expansion was driven by strong growth in household consumption as well as gross capital formation.

For 2024, average inflation could return to within-target range at 3.1 percent. In the latest assessment of the BSP, inflation is more likely to end up higher than the forecast rather than below it.

The Fed penciled in a 5-5.25 percent peak interest rate for 2023, after which officials see rates falling to 4.25-4.5 percent by the end of 2024.

Rates will keep rising in 2023

In December, the FOMC projected that the median Federal Funds Rate (FFR) in 2023 would be 4.6 percent. This projection was revised in March, with the FOMC projecting the FRR to hoover between 5.1 and 5.6 percent in 2021.

A sustained drop could push mortgage rates into the 5% range late in the second quarter or in the second half of 2023, but that's definitely not guaranteed. Mortgage Bankers Association (MBA): “Long-term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2%.”

1) Interest-rate forecast.

We project a year-end 2023 federal-funds rate of 4.75%, falling to about 2.00% by the end of 2024. Further out, our 2026 and long-run projection for the fed-funds rate and 10-year Treasury yield are 1.75% and 2.75%, respectively.

Fed's Bullard Lifts 2023 Interest Rate Forecast to 5.625% on Strong Growth - Bloomberg.

While 7% with Landmark Credit Union is the highest available interest rate, other high-yield savings accounts exist and may be more worth it based on each bank's unique requirements.

Which bank gives 6% interest on savings account? ›

How much should be saved in an emergency fund? There is no fixed amount for an emergency fund. It depends on your living expenses. But as a general rule, emergency funds should cover at least three to six months' worth of your living expenses.

In 2022, the leading foreign investor in the Philippines was Singapore, with investments amounting to approximately 131 billion Philippine pesos.

If you want a safe place to park extra cash that often earns a higher yield than a traditional savings account, consider a money market account. Money market accounts are like savings accounts, but they typically pay more interest and may offer a limited number of checks and debit card transactions per month.

It is a safe yet lucrative investment

Furthermore, unlike other investment options that need extensive business expertise, even first-timers may benefit from real estate prospects without difficulty, especially with the assistance of reputable real estate firms in the Philippines.

The information and communication sector had the highest value of approved investments in the Philippines in 2022, as reported by the Philippine Board of Investments. Approved investments in this sector amounted to 246.2 billion Philippine pesos in that year.

In the Philippines, the PSEi is the only index available for tracking whereas in the US, there are indices such as S&P 500, NASDAQ, Dow Jones Industrial Average, and more.

Anyone, regardless of nationality, can invest in the Philippines with up to 100% equity. A business with 60% Filipino equity is considered a Philippine company, while one with more than 40% foreign equity is considered a foreign-owned domestic company.

What is the biggest index in the Philippines? ›

​The PSEi is the main index of the Philippine Stock Exchange (PSE).

1.00% p.a. Every trading day at 7:30 p.m.

Ideally, you should stay invested in equity index funds for the long run, i.e., at least 7 years. That is because investing in any equity instrument for the short-term is fraught with risks. And as we saw, the chances of getting positive returns improve when you give time to your investments.

According to Standard and Poor's, the average annualized return of the S&P index, which later became the S&P 500, from 1926 to 2020 was 10%.  At 10%, you could double your initial investment every seven years (72 divided by 10).

S&P 500 Total Return Level: 8897.73 for April 28, 2023.

The longer an investment window you give yourself, the more wealth you might gain over time. It's a smart idea to invest extra cash in 2023 if you're managing your bills well. Before you invest, make sure you have money set aside for emergencies and eliminate high-interest debt.

Basic Info. S&P 500 5 Year Return is at 55.60%, compared to 46.29% last month and 91.75% last year. This is higher than the long term average of 44.28%. The S&P 500 5 Year Return is the investment return received for a 5 year period, excluding dividends, when holding the S&P 500 index.

What is the expected 10 year return on the S&P 500? ›

Basic Info. S&P 500 10 Year Return is at 161.9%, compared to 162.1% last month and 221.7% last year. This is higher than the long term average of 112.3%.

Despite the recent uncertainty, experts don't recommend withdrawing cash from your account. Keeping your money in financial institutions rather than in your home is safer, especially when the amount is insured. “It's not a time to pull your money out of the bank,” Silver said.

So, Is your money safe? You almost likely don't need to be concerned if you have less than $250,000 in an FDIC-insured account with a US bank. Up to $500,000 is protected for joint accounts.

In 2023, economic activity is projected to stagnate, with rising unemployment and falling inflation. Interest rates are projected to remain high initially and then gradually decrease in the next few years as inflation continues to slow.

Bitcoin's (BTC) Surge Makes It the Best Performing Asset in Q1 2023 - Bloomberg.