Have you heard about the “ALFM Global Multi-Asset Income Fund” by any chance? Well, if you are looking for an additional source of passive income, then try exploring this one. But of course, we will try to share with you first some information that you need to know before diving in.
DISCLAIMER: This article is not a sponsored post. Neither is financial advice.The content is based on fact sheets and personal experience and review.
What's In Here
- The ALFM Global Multi-Asset Income Fund was launched last November 15, 2019, for the USD class and on June 01, 2021, for the PHP class.
- It is a multi-asset feeder fund that invests not only in equities, equity-related securities, in bonds, cash, and many others.
- This investment allocates at least 99% to target funds while the rest to cash and cash equivalents such as time deposits and other receivables.
- This mutual fund investment scheme is ideal for investors with a moderately aggressive risk appetite based on their risk profile.
- The investor should have an investment horizon of at least 5 years for this feeder fund.
- Investors can order ALFM Global Multi-Asset Income Fund from banks, stock broker platforms like COL Financial Mutual Fund System (XALGMIF), e-wallets like GCash GInvest (ALFMGMIP), and many others.
What is ALFM Global Multi-Asset Income Fund?
So, what exactly is ALFM Global Multi-Asset Income Fund? This is a feeder fund, which is an investment scheme that allows small investors, like us, to engage and access the global or offshore market.
This investment is a feeder fund that invests in BlackRock’s global multi-asset income fund. BlackRock is the world’s largest asset manager that is based in New York City.
Here are some videos that will explain a little bit more about the ALFM Global Multi-Asset Income Fund.
What Is A Feeder Fund?
To simplify what is a feeder fund and how it works, let’s say, you wanted to invest in an offshore stock. But there are no ways or means where you can directly engage in it. It can be because there are requirements such as you have to be a citizen of that country or the amount to invest is too expensive. Or, it can probably be because of some other legal or technical reasons. You will now try to find a company or institution locally who have access to that investment which allows small investors to join the pool.
Unlike other investments, a feeder fund is a pool of small investors that are then aggregated to invest into what we call a master fund. Some may call it “a fund within a fund” kind of investment scheme.
This kind of investment allows you diversification of your portfolio. This can be advantageous if in case the Philippine economy goes south while in other countries, like the US, they are growing steadily. Then, you can be assured that you are still earning.
Invest And Receive ALFM Global Multi-Asset Income Fund Dividend Payouts
This investment scheme provides a stable stream of dividends. A dividend is a payment that investors or shareholders receive from the company’s earnings. We think that is a good incentive for investors to invest more and stay longer. It is because it gives the investors to earn in two ways.
And as of writing this, here’s the monthly historical distribution of dividends payouts if you are investing in the ALFM feeder fund.
On GCASH’s ALFM Global Multi-Asset Income Fund, we did a test by investment Php 1000 back in July 2022. After a month, we received an email from BPI Investment Management Inc. So, with a NAVpU of Php 44.7688, we accumulated a settlement amount of Php 4.53. Just imagine if we’ve invested more.
This video clip will provide the basics of dividends.
Where To Invest And How Much Should You Invest?
As of writing this, there are different platforms where you can invest in ALFM Global Multi-Asset Income Fund. A few of them that we know are:
- BPI Investment Funds – You can go to the nearest branch and inquire for more details. Or you can visit their website.
- COL Financial Mutual Fund System – You can apply for a COL Financial account. Once your application gets approved, then you can participate in investing in mutual funds.
- E-Wallets such as GCash GInvest. You can even invest in other investment products in GCash for as low as Php 50.
Surely, there are other platforms out there but make sure that they are legitimate institutions to avoid being scammed. One thing you can do is you can talk to your bank if they have such mutual fund investments.
We’ve mentioned before that a feeder fund allows small investors to allocate money at an affordable price.
For example, in COL Financial Mutual Fund System, the minimum investment is Php 5,000 for the PHP class. And the subsequent minimum investment is Php 1,000.
Meanwhile, if you go through the GCash GInvest app, the minimum investment is Php 1,000 and the minimum subsequent buy order is Php 50. But there is a minimum maintaining balance of Php 500.
Is ALFM Global Multi-Asset Income Fund Ideal For Me?
ALFM Global Multi-Asset Income Fund is said to be ideal for investors with a moderately aggressive risk appetite. These are investors who are adventurous and aim to get high returns.
If you are a type of investor who is too protective with your asset and you can’t afford to lose then your risk appetite is conservative. Hence, this investment scheme might not be suitable for you. Because as we’ve mentioned that this investment is a fund within a fund, it invests at least 90% of its assets into a single collective scheme. And if things go south, then you can lose your money. But if everything is going well, then expect happy days to come your way.
This is why the recommended horizon for this investment is long-term – at least 5 years.
Before you participate in an investment scheme like ALFM Global Multi-Asset Income Fund or any other mutual fund, evaluate yourself first.
You should know first your risk appetite for one. Because the market can be volatile sometimes. An investment like this is not for the faint-hearted. You might jump off the ship too early once you see the chart nose-diving. Or you might exit early once you see the chart flying.
If you are going to invest, it is always advisable to aim long-term. Hold your investment for at least 5 years or more. And while on it, manage your portfolio. By managing your portfolio, what we mean is don’t be complacent with your initial investment and be contented with your monthly dividends.
Why not make a habit of adding more shares at least every month into your portfolio? And buy even more when the price is low so that you can avail yourself of more shares. And in addition to this, you can reinvest your monthly dividend earnings. In return, you will get higher dividends and income returns once you want to exit.
Again, it is entirely up to you. But if you want to test the waters, with smaller investments, you can try investing through GCash.