Investors earn from GSIS Mutual Fund
GSIS’s members and pensioners who have invested in the GSIS Kinabukasan Fund are now reaping the fruits of the country’s booming economy.
This after the GSIS Kinabukasan Fund, riding on the wave of a profitable investment climate, posted a staggering 43 percent return in investments in 2006.
This means that a GSIS member who invested P1,000 in January last year, earned a net profit of P430 by the end of 2006.
The gain is a far cry from the measly one percent in interest rates per annum banks offer in savings account, or even the less than four percent interest offered in time deposits.
“You won’t earn 43 percent from any bank. Kinabukasan Fund is the best option available for our members and pensioners if they want to invest,” said Ms. Gina Goco-Morales, the executive vice president of Philam Asset Management, Inc. (PAMI).
“In fact, the GSIS Kinabukasan Fund was the highest performing balance fund in 2006,” she added.
PAMI, a member of the Philam Group of Companies, is the fund manager of the GSIS Kinabukasan Fund.
For 2007 on a year-to-date basis, the Kinabukasan Fund has already earned more than 23 percent from its total investments.
In mutual funds, the fund manager pools all the money of the investors and invests them in different investment instruments, like stocks and bonds.
Due to the sheer diversity of these options, the investments have a great potential to earn and consequently less prone to the risks associated with a particular instrument.
The GSIS Kinabukasan Fund started in 1998 when the GSIS wanted to set up a fund that will provide affordable investment options for government employees.
GSIS members and pensioners can join the Kinabukasan Fund by investing at least P1,000. Non-GSIS members are required to place a P5,000 minimum investment.
The mutual fund is registered with the Securities and Exchange Commission as an investment company.
Investing in the Kinabukasan Fund enables the investor to become a part owner of the mutual fund.
Aside from the supervision of the SEC, the presence of a custodian bank, transfer agent and auditors also ensure the legitimacy of the mutual fund.
Source: GSIS Kawani, Vol. 1 No. 2, May - August 2007.