GInvest Fund Guide: ATRAM Total Return Peso Bond Fund

GCash’s GInvest allows users to invest in a wide selection of stocks and bonds via investment funds for as low as PhP50.00. In this article, we break down all you need to know before investing in the ATRAM Total Return Peso Bond Fund (ATRAM TRPBF).

For a step-by-step run-through detailing the process of buying shares of investment funds through GInvest, see our guide: How to Invest in Mutual Funds with GCash.

For all you need to know about mutual funds, see our guide: What is a Mutual Fund?

Fund Description

The ATRAM TRPBF is a long-term bond fund which mainly invests in a selection of Philippine government bonds and corporate bonds.

Through bonds, investors can lend money to the government or to companies in exchange for repayment of the principal plus interest by the borrower. Bonds are thus also known as “fixed income” securities as the repayments are usually done in the form of coupons paid out on a regular basis.

The ATRAM TRPBF requires a minimum subscription amount of PhP50.00 and a further PhP50.00 minimum amount for succeeding subscriptions.

Management Fees

The ATRAM TRPBF is an actively managed bond fund. The fund’s fees are broken down below. The fees are charged as a percentage of the average daily net asset value (NAV) of the fund for each quarter.

Trustee Fees1.14%
Custodianship Fees0.02%
External Auditor Fees0.01%
Other Fees (Transaction Fees)0.01%

Redemption

The ATRAM TRPBF has no minimum holding period and no early redemption charge.

Investment Considerations

Merits

  • The fund provides a convenient way of investing in a basket of bonds from the Philippine government as well as from companies.

Risks

  • Although potentially more “stable” than stocks in terms of price fluctuations and cash flows, bonds also usually have lower potential returns than stocks.
  • Bonds may also face the threat of default if the borrower proves unable to repay his debt.
  • As with any investment, returns are not guaranteed and research is very much necessary.

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