It’s been nearly a year since GCash’s GInvest — the e-payment service’s investment platform — rolled out its first dividend-paying funds in a move to further bring investing closer to Filipino homes. Like its flagship investment products, GInvest’s dividend-paying fund is available on the GCash app and is managed by the mobile wallet’s partner fund managers. The Beat Asia tried our hands on this fund to see if it’s possible to earn passive income from GInvest. Check out our GInvest review below!
What is GInvest’s Dividend-Paying Fund
As of writing, GInvest has one dividend-paying fund — the ALFM Global Multi-Asset Income Fund — from BPI Investment Management. According to GInvest, this fund “aims to provide a stable stream of dividends and generate long-term capital growth.”
This is the first feeder mutual fund in the Philippines and as such, it invests “at least 90% of its assets into a single collective scheme.” These investments include “equities, equity-related securities, fixed income transferable securities, units of undertakings for collective investment, cash, deposits and money market instruments.”
Dividends are paid on a monthly basis and are directly credited to your GCash account.
How to Invest in GInvest’s Dividend-Paying Fund
ALFM Global Multi-Asset Income Fund is accessible via the GCash app. On your homepage, click on the following:
- GInvest
- ALFM Global Multi-Asset Income Fund
- Buy
The minimum investment is P1,000. The processing time for buy orderstakes four business days, following the price date on the next business day. Price date refers to the date where theNet Asset Value Per Unit (NAVPU)is based.
For example, if you buy your order on Oct. 3, 2022 (Monday), GInvest is expected to complete your order by Oct. 7, 2022 (Friday). Meanwhile, the NAVPU of your order will be based on the price on Oct. 4, 2022. From personal experience, the processing and completion of orders may take as short as three business days.
GInvest will send you a text message saying your order is in process. You can also see your pending orders in your GInvest portfolio.
They will send another text message once your order has been completed, including the NAVPU applied, number of units purchased, and updated value of your portfolio.
Want to pull out your funds? The processing time for sell orders is eight business days, following the price date on the next business day.
Performance of GInvest’s Dividend-Paying Fund
As of Oct. 24, the ALFM Global Multi-Asset Income Fundwas down by 8.42% with a NAVPU of 43.9097. To illustrate, our P4,000 investment is now only valued at P3,857.47 or a loss of P142.53 since our first buy order inDecember 2021. Keep in mind that your gains and losses will depend not only on how much you have invested but also the timing of your investment.
But here’s the good news: Despite the paper losses in our fund’s value, we received cash through the monthly dividends. In equities, dividends are given to shareholders in the form of stocks or cash. In the ALFM Global Multi-Asset Income Fund, dividends are calculated by the following:
- number of fund units you have x unit dividend (which you can find in the dividend notice) x NAVPU as of record date
Our investment of P4,000 had a monthly payout of P19.07in September. ALFM will send you a dividend notice via email around the second week of the month. The amount will usually be credited directly to your GCash account after three business days.
Here’s a sample dividend notice:
And here’s the text message from GCash saying your dividend has been credited:
To illustrate further: If you’re thinking of a passive income that can shoulder your monthly splurge of P3,000on Starbucks,you have to invest roughly P630,000 in GInvest’s dividend-paying fund.
Final Words
ALFM Global Multi-Asset Income Fund on GInvest is a great way to dip your toes in the world of investing as its strength lies inconvenience. Imagine investing in equities and bonds through one of the most-used apps in the Philippines. Brilliant, isn’t it?
But like any form of investment, this fund comes with risks. Geopolitical events, economic uncertainties, and market sentiment are just some factors that could affect your fund’s value. If your goal is to save up for your emergency fund, you might have to look elsewhere. But if you already have an emergency fund and can afford to take financial risks, this is a great option for you.
Subscribe to The Beat's newsletter to receive compelling, curated content straight to your inbox! You can also create an account with us for free to start bookmarking articles for later reading.
