NEW MUTUAL FUND ALERT!
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| Snapshot of COL's Overview of ALFM Global Multi-Asset Income Fund |
I have just noticed today that there is a new mutual fund listed in COL Financial. It's the ALFM Global Multi-Asset Income Fund, with fund code XALGMIF. It was launched last June 01.
It caught my attention because (1) XALGMIF is multi-asset, meaning, it invests in bonds and other investment vehicles, not just equities, (2) it is income paying, hence, dividends can be expected of the fund, (3) it is global because the target fund (of the feeder fund) invests in assets found outside the Philippines, where economies are so much better; and (4) it is relatively affordable because it is a feeder fund, which requires a minimum initial investment and minimum additional contribution of Php 5,000.00 and Php 1,000.00, respectively. A feeder fund is a pooled-investment fund that will allow us to invest in a relatively "expensive" target fund like Blackrock's BGF Global Multi-Asset Income Fund, with just a min. initial investment of Php 5,000.00, compared to USD 100,000.00 if we are to directly invest in the target fund without going through the feeder fund. The discussion on feeder fund and target fund, however, deserves a separate blog entry.
In other words, XALGMIF is like a Balanced Mutual Fund only that you are invested in the global market instead of the Philippine market. It becomes possible for us to afford investing in global market because of the feeder fund.
I only peeked at its Fund Fact Sheet and will study it thoroughly after I finish all my deadlines at work. (Hehehe!)
Sneak peek: the asset allocation of the target fund of XALGMIF is comparable to that of ATRAM Global Multi-Asset Income Feeder Fund. The latter, however, is a UITF and therefore not available in COL. Neither is it available in Seedbox and GInvest, making XALGMIF the more accessible fund to invest in for COL account holders like me.
To do: I am quite excited to dive deeper into multi-asset income paying feeder funds like XALGMIF. Unlike equity feeder funds, which are high-risk high-reward investment, multi-asset feeder funds provide us diversification and a certain level of stability. Thus, it is something worth studying. Maybe, it is worth my longer Think Piece!
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You may want to check the news report about ALFM Global Multi-Asset Income Mutual Fund at
BIMI launches feeder and income-paying mutual fund
