Which Investment Fund Will Yield the Best Returns in 2025: MP2 Pagibig, Time Deposits, or J.P. Morgan Fund?
- San Jose & Partners
- Jan 28, 2023
- 8 min read
Updated: Apr 30
2025 Investor's Guide to Selecting the Appropriate Product
Updated article for 2025
When investing in the Philippines, there are various investment vehicles that every Filipino might consider. Despite the availability of diverse investment products, choosing mismatched investment vehicles often leads to stress for clients and can cause anxiety for the average investor.
I. Getting Ready to Invest: Planning Your Investment
Honesty is Key
Being upfront with your Licensed Financial Advisor makes planning smoother. They need to know where you stand and what you aim for. Many Filipinos feel a bit uncomfortable sharing all their financial details. But holding back can lead to picking the wrong product, which might mess up your cash flow and investment stability. Most certified advisors offer a Data Privacy Act (DPA) agreement to keep your info safe from prying eyes. You can ask your advisor for this agreement to make sure your details stay protected.
Find the Right Advisor
Advisors come in all shapes and sizes. Just like any other job, having the right advisor can make a difference in reaching your financial goals. It's super helpful to have well-trained, internationally certified, and licensed consultants with tons of experience in the area you're interested in. There's a big difference between an agent (someone who's mainly trying to sell you something) and a true consultant (a pro who helps you find the best solution for your financial situation).
How to Find a Genuine Consultant?
Here's a simple tip: If someone can offer you financial advice without pushing you to buy something from them and instead charges a consultation fee, you're likely dealing with a real professional consultant. Remember, nothing's truly free! Even if paying a fee seems pricey upfront, it usually benefits your portfolio more in the long run by eliminating any conflicts of interest.
Set a realistic budget and timetable
Some people think of investments like casinos, expecting fast rewards. Remember to consider investment like a business. Investments are also invested in government securities and business, it takes time for businesses to give you the desired rate of return you want. It is best to discuss with your consultant regarding this as it may affect your cash flow and quality of life should you overinvest or underinvest in a specific financial goal.
II. Know your investment
Understanding MP2 by PagIBig, Time Deposit, and JP Morgan Fund.
Bank Time Deposit: Not the Best Bet.
Some folks might be surprised. A bank time deposit a bad deal? Isn't your money safe and earning interest?
Let's break it down:
Bank rates usually don't beat inflation.
Your money is stuck for a set period.
It's tougher to grow your earnings.
Default risk: If a bank goes under, you're only covered up to Php 500,000.
All your eggs are in one basket with just one bank.
No growth in your initial investment.
No extra perks or financial benefits.
A lot of paperwork and taxes before you can pass it on to someone else, including bonds, taxes, and documents.
In short, bank time deposits are okay for the short-term parking of your money. They're not great for the long haul, as inflation can erode the real value of your funds.
Average bank rates: 0.2% to 3% (from well-established banks). Riskier banks might offer higher rates.
MP2 Pag-ibig Savings: A Different Kind of Investment.
According to the Pag-ibig website, the MP2 Savings Program is a special, voluntary savings option with a 5-year lock-in period. The Pag-IBIG Fund allocates at least 70% of its annual net income to members’ Pag-IBIG Savings as dividends.
Here are some things to keep in mind:
1. Compared to bank rates, MP2 has averaged around 6.019% over 11 years (from 2011 to 2021).
2. Just like banks, your money is locked in for 5 years.
3. If you want to reinvest, you’ll need to open multiple accounts, which can be a hassle and extends the lock-in period for new funds.
4. The fund relies on interest rates, so there’s no capital appreciation.
5. There are no extra perks or additional financial materials.
6. It’s more complicated to transfer to a beneficiary if something happens to you.
7. The risk exposure is 100% with Pag-ibig.
In a nutshell, run by the Government, MP2 is good for keeping your capital safe since it only gives interest on your funds. It offers a better rate than banks, but the perks are limited, and your money is tied up for 5 years.
.
J.P Morgan Multi-Asset Fund. Everything you need without the hassle!
JP Morgan has a long-standing history in asset management, establishing a solid reputation for investment handling and asset management. Their vast experience makes them a favored option for clients seeking to grow their wealth and make prudent financial choices.
Here's the scoop:
When comparing investment options, the J.P Morgan Multi-Asset Fund stands out significantly against traditional banking products and MP2 savings schemes. It offers an attractive annual dividend rate that typically ranges from approximately 5% to 8%. One of the most appealing features of this fund is that dividends are paid out monthly, providing you with a steady stream of income that can help with monthly expenses or be reinvested for greater growth.
Another advantage of the J.P Morgan fund is the absence of a lock-in period. Many traditional banks and MP2 options require you to commit your funds for a set period, which can be inconvenient if you need access to your cash. With the J.P Morgan Multi-Asset Fund, you have the flexibility to withdraw your funds whenever you need them. There is a small fee associated with early withdrawals 4% during the first year, 3% in the second year, 2% in the third year, and 1% in the fourth year. However, if you keep your investment for five years or longer, you won’t incur any withdrawal fees at all, giving you both liquidity and the potential for growth.
Adding more capital to your investment is incredibly straightforward with the J.P Morgan Multi-Asset Fund. You can easily top up your account at any time, allowing you to increase your investment as your financial situation improves or as you come into additional funds. This flexibility is a significant advantage over many other investment vehicles that have more stringent requirements for additional contributions.
In addition to the monthly dividends, the fund also offers the potential for capital growth. With an average return of 5% to 8% per year, your investment not only generates income through dividends but also appreciates over time. This dual benefit means that your money is working hard for you in multiple ways, increasing your overall returns.
To make things even more convenient, your earnings from the J.P Morgan Multi-Asset Fund are deposited directly into your UNION BANK account at no additional cost. This seamless process eliminates any unnecessary hassle, allowing you to enjoy the benefits of your investment without the complexities of managing multiple accounts or transfers.
Your investment is not only lucrative but also globally diversified. The J.P Morgan Multi-Asset Fund spreads your money across more than 120 countries and utilizes over 80 different investment strategies. This extensive diversification minimizes risk by investing in a variety of assets, including Real Estate Investment Trusts (REITs) and companies known for paying high dividends. This strategy helps ensure that your monthly payouts remain consistent and reliable, reducing the risk associated with investing in a single business or market.
Furthermore, the J.P Morgan Multi-Asset Fund includes a valuable life insurance component. You receive a guarantee of approximately 125% of your total premium, providing additional peace of mind. For instance, if you invest Php 1 Million, your beneficiary would receive a Php 250,000 benefit, ensuring that your loved ones are taken care of in the event of unforeseen circumstances.
Transferring funds to your beneficiary is straightforward and tax-free, which means that your money can be easily passed on to your heirs without any complications. This feature is particularly important for investors who want to ensure that their wealth is preserved and transferred according to their wishes without incurring additional tax burdens.
Here's the gist: You can expect an average annual dividend of 5% to 8%, paid out monthly, alongside a potential capital growth of 4% to 8% and the added benefit of life insurance. It's akin to investing in real estate but with the added advantage of diversification across various assets and strategies.
Want to dive deeper into the J.P Morgan Multi-Asset fund? Click here for more details >
In summary, the J.P Morgan Multi-Asset Fund is managed by the prestigious J.P Morgan Asset Management, which is recognized as the world's largest investment bank. This fund not only offers superior rates and growth potential but also includes perks that are often unavailable through local banks. The absence of a lock-in period, the ease of adding funds, and the uncomplicated process for transferring assets to your beneficiary make the J.P Morgan Multi-Asset Fund a smarter and more flexible investment choice compared to traditional banking options.
Exciting news for investors in the Philippines: JP Morgan Fund Management is now accessible to you. This significant development opens up a wealth of opportunities for both seasoned and novice investors who are eager to diversify their portfolios and tap into the expertise of one of the world's leading financial institutions. With JP Morgan's extensive experience in fund management, investors can now benefit from a range of investment strategies that are designed to cater to various risk appetites and financial goals.
Investors in the Philippines can now explore a variety of investment options, including equity funds, fixed-income funds, and balanced funds, each meticulously crafted to optimize returns while managing risk effectively. JP Morgan's global reach and insights allow them to identify lucrative investment opportunities across different markets and sectors, which can be particularly advantageous for local investors looking to expand their horizons beyond the Philippine market.
Furthermore, the accessibility of JP Morgan Fund Management in the Philippines signals a growing trend of international financial firms recognizing the potential of the Filipino market. This not only enhances competition among fund managers but also provides investors with more choices and potentially better service. As investors gain access to JP Morgan's vast resources, including research, market analysis, and cutting-edge technology, they are better equipped to make informed investment decisions.
Moreover, this development aligns with the increasing interest of Filipinos in investment and wealth management, as more individuals seek to grow their savings and secure their financial futures. With the backing of a reputable institution like JP Morgan, investors can have greater confidence in their investment choices, knowing they are supported by a team of experienced professionals dedicated to maximizing their financial outcomes.
In conclusion, the availability of JP Morgan Fund Management in the Philippines marks a pivotal moment for local investors. It not only broadens the investment landscape but also empowers individuals to take control of their financial destinies with the guidance of one of the top names in global finance.
The J.P. Morgan Multi Asset Fund is now available in the Philippines exclusively through Inlife, provided by SJ&P's licensed and certified consultants.
III. In conclusion
Each investment serves a distinct purpose and ultimately supports your financial goals. To minimize financial stress and burden, match your financial objectives with the right product. Conduct comprehensive research and only work with licensed professionals who are regulated by our financial institutions. Think of each investment as a medication; if you're unsure, consult your licensed financial advisor.
You may contact us anytime via our helpdesk at (02) 8841.7900 | or schedule a meeting
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* Inflation: the rate of increase in prices over a given period. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. www.imf.org
* Capital appreciation is a rise in an investment's market price. Capital appreciation is the difference between the purchase price and the selling price of an investment. If an investor buys a stock for $10 per share, for example, and the stock price rises to $12, the investor has earned $2 in capital appreciation. www.investopedia.com
King San Jose-Santos, RFP, CFC, LFA, CTA, FIFC is a Universally Licensed Consultant specializing in various financial products, including life insurance, healthcare, investments, and non-life financial products. He holds credentials as a registered financial planner, a certified financial consultant, and a certified technical market analyst, and he has been honored with the prestigious "fellow" designation by the Institute of Financial Consultants, Canada. His expertise encompasses corporate retirement funds, market analysis, and wealth management for both individuals and corporations. He is affiliated with international financial organizations such as the Society of Technical Market Analysts, USA, International Financial Consultants, Canada - USA, the Financial Planner Organization Philippines, and the Philippine Management Organization of the Philippines.
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