Online stockbroker Colfinancial.com is now venturing into asset management with the launch of its first equity index fund.
The company told regulators that its COL Index Unitized Mutual Fund will be investing in the Philippine Stock Exchange’s (PSE) 30 index companies, “closely replicating their respective weightings in order to achieve similar returns as the index.”
Colfinancial.com said its fund is targeted towards investors with high risk tolerance while believing in the Philippine growth story and are seek long-term capital growth without the risk of trying to “outperform” the market.
The fund will allow an investor to trade the volatility of the stock market “using a broad-based index instead of individual stocks.”
Colfinancial.com said the COL Equity Index Unitized Mutual Fund is open to investors and offers no lock-up period, allowing an investor to cash out its investments whenever it wants to, even the next day. A typical mutual fund requires an investor to keep his money with the funds for at least six months.
The fund also charges the lowest management fee for local index funds as well as the most affordable minimum investment amount at P500 for the first subscription and P100 for subsequent subscription.
