What is BDO equity index fund?
The Fund aims to provide investors with a total return which reflects the return of the Philippine Stock Exchange Composite Index (PSEi) by investing in a diversified portfolio of stocks that so far as practicable consists of the component companies of the PSEi.
The Equity Index Fund offers participants exposure to the stocks of large corporations through a passive investment vehicle. Returns on large cap equities have historically exceeded inflation, but with substantial volatility over short and even intermediate holding periods (risk as measured by standard deviation).
The BDO Equity Index Fund allows you to ride the growth of the Philippine economy by investing in all component companies of the PSEi – giving you the potential to grow your capital in the long term.
The Fund aims primarily for capital growth over the medium to long-term by investing in a selection of exchange-listed equities.
The Fund aims to achieve investment returns that track the performance of the Philippine Stock Exchange Index (PSEi) by investing in a diversified portfolio of stocks.
In an index fund, you only have market risk or systematic risk unlike in an equity fund investment where you also have the unsystematic risk factors impacting your fund returns. However, the assumption in active investing is that the stock selection will result in higher returns.
You can buy index funds through your brokerage account or directly from an index-fund provider, such as Fidelity. When you buy an index fund, you get a diversified selection of securities in one easy, low-cost investment.
Equity refers to the shares issued by individual companies. These can be purchased in the stock exchanges by individuals, trusts, HUFs, firms and corporate investors. An index, on the other hand, is generally issued by a stock exchange, not by any company.
The best index fund in the Philippines is Sun Life Prosperity Philippine Index Fund because it tracks the Philippine Stock Exchange Index (PSEI) 100%.
Being equity funds, index funds are subject to dividend distribution tax and capital gains tax subject to dividend distribution tax and capital gains tax.
How can I withdraw my BDO Equity Fund?
You can redeem/withdraw your investments and still be in the program. Just visit the branch where your EIP is booked. For your investments with a COP, you need to surrender the COP upon redemption. On the other hand, if you are redeeming participating units of investments without a COP, submit the Notice of Redemption.
Equity funds are those mutual funds that primarily invest in stocks. You invest your money in the fund via SIP or lumpsum which then invests it in various equity stocks on your behalf. The consequent gains or losses accrued in the portfolio affect your fund's Net Asset Value (NAV).
Equity funds are suitable for investors with moderately high to high risk appetites. Debt funds are suitable for investors with low to moderate risk appetites. Within the broader equity, debt and hybrid fund categories, there are various sub-categories.
What is PERA? - PERA is a voluntary retirement account. - It is open to Filipinos who have the capacity to contract and have a Tax Identification Number (TIN). - The maximum PERA contribution per year is Php100,000 for Local Filipinos and Php200,000 for Overseas Filipinos (OFs).
As a PERA member, you contribute a percentage of every paycheck to PERA. In exchange, you'll receive a lifetime defined benefit payment, or a pension, at retirement. In addition to that monthly benefit, PERA also provides benefits life survivor and disability benefits.
There's no universally agreed upon time to invest in index funds but ideally, you want to buy when the market is low and sell when the market is high. Since you probably don't have a magic crystal ball, the only best time to buy into an index fund is now.
Index funds are popular with investors because they promise ownership of a wide variety of stocks, greater diversification and lower risk – usually all at a low cost. That's why many investors, especially beginners, find index funds to be superior investments to individual stocks.
- Market Value: $757 billion.
- Yield to Date Return: 17.99%
- Expense Ratio: 0.04%
Index funds are investment funds that follow a benchmark index, such as the S&P 500 or the Nasdaq 100. When you put money in an index fund, that cash is then used to invest in all the companies that make up the particular index, which gives you a more diverse portfolio than if you were buying individual stocks.
What is an example of an index fund?
An “index fund” is a type of mutual fund or exchange-traded fund that seeks to track the returns of a market index. The S&P 500 Index, the Russell 2000 Index, and the Wilshire 5000 Total Market Index are just a few examples of market indexes that index funds may seek to track.
Equity refers to the shares issued by individual companies. These can be purchased in the stock exchanges by individuals, trusts, HUFs, firms and corporate investors. An index, on the other hand, is generally issued by a stock exchange, not by any company.
While indexes may be low cost and diversified, they prevent seizing opportunities elsewhere. Moreover, indexes do not provide protection from market corrections and crashes when an investor has a lot of exposure to stock index funds.
