Best Money Market Funds in the Philippines

Last Updated – Feb 6, 2024 @ 1:08 pm

Keeping your money in the bank without investing it in something isn’t always the best idea for long-term wealth accumulation

As Filipinos, we must understand that learning about different kinds of investments will be of great help when battling the challenges of generating income and inflation.

So in this article, we would like to help you understand what Money Market Funds are and how investing in it may help improve your finances.

What are Money Market Funds?

A money market fund is a mutual fund that offers you to invest in highly liquid, near-term instruments. Examples of these instruments include cash, cash-equivalent securities, a high credit rating, and debt-based securities with short-term maturity.

Meaning you are given an option to invest in something that has high liquidity alongside a very low level of risk. These are usually offered by investment fund companies.


Fundamental Characteristics of Money Market Funds in the Philippines

  • Initial Capital – This pertains to the minimum amount of money required when you open the fund. This typically ranges from Php 25 to Php 1 Million.
  • Additional Investments – This also ranges from Php 25 to Php 1 Million and is the minimum amount you can pay to boost your initial investment.
  • Sales Load –  A portion of your investment that is like a “Fee” that you pay every time you put in or add money to your investment. Usually, this is for compensating the licensed agent who offered you their assistance.
  • Management Fee – This is used to pay for the operation and management of the fund which typically ranges from 0.05% to 1%.
  • Holding Period – The period of time that you are expected to keep your investment in the fund. If you choose to withdraw your money back earlier than this you will be charged an exit fee.
  • Exit Fee –  as said in the previous entry, this is the fee paid if you choose to withdraw your money earlier than expected.  

Advantages of Money Market Funds vs Other Investments

  • High Liquidity – You will be provided with securities that mature in short periods of time and can be withdrawn or converted to cash anytime. Your fund manager will invest their pooled investor cash into money market securities which includes bank certificates of deposit (CDs), federal agency notes, high-grade commercial paper, or government treasury issues like T-bills.
  • Security/Safety – The Security and Exchange Commission (SEC) only allows securities with the highest credit ratings to purchase in money market funds thus creating a fairly high degree of safety for you and other investors. These are not usually found in other types of investments. 
  • Higher Yields – It also offers a potential for higher yields compared to other cash equivalents like savings or money market accounts from a bank or credit union. Diversification of underlying investments also adds up to greater yields.

Who can Invest in Money Market Funds

If you are an investor with a short investment horizon or is someone looking for a short-term commitment, the money market fund is perfect for you.

Instead of parking your money in a savings account, you can instead invest it in this type of fund which offers a relatively higher yield in comparison.

However, investors who are looking for a longer term may opt to invest in dynamic bond finds or balanced funds instead.

Additionally, here are some of the things to consider as an investor:

  • Risk – same as other funds the money market fund still faces interest rate risk, credit risk, and reinvestment risk. The fund manager may also invest in risky securities with a higher probability of failing.
    • You must also consider Inflation. This describes the rise in prices of goods and services. Make sure your returns at least match or exceed inflation to avoid losing assets.
  • Return – even if it has a greater yield than normal savings account it still isn’t guaranteed. A fall in interest may cause an increase in the prices of an underlying asset and deliver good returns.
  • Costs – this pertains to the fee charged by fund houses to manage investments. Make sure you understand the terms before investing.
  • Investment Horizon – decide if you want a short-term or a long-term horizon before investing.
  • Financial goals – for investors like you who are looking to make EMI payments or invest extra cash while maintaining liquidity, you can use a portion of your portfolio for this diversification. 

How to invest in a Money Market Fund in the Philippines?

Before Investing, you will have to choose between four options – mutual funds, UITF, PERA, or valuable universal life insurance (VUL). After deciding here are some pointers to help you move forward with your decision:

  1. You must be aware of your overall financial status, check up on it, and try to understand and/or define your financial goals.
  2. Search up and educate yourself regarding the specific money market fund you are about to invest in. Look at the sales load, exit fees, holding period, and the management fees involved.
  3. Choose the institution you think best suits your needs. Read up on them and try to ask other people you know that have already invested in them.
  4. Set up a meeting with a qualified representative or a licensed financial advisor to help you break down and understand your investment.
  5. Must be 18 years old. Younger kids need to have a legal guardian to apply for them and may ask about in-trust for (ITF) documents.
  6. Have at least one valid I.D. with you.
  7. Prepare the minimum starting capital you are going to invest.
  8. Fill out all the needed documents regarding your income, source of income, and other personal info. 
  9. If you have already decided, go and sign up and make your deposit. Wait for account creation and subscription confirmation along with other details.
  10. Always check up on the status of the fund.

Top Companies in the Philippines that offer Money Market Funds (MMF) Investment

Here’s a list of the top Money Market Funds in the Philippines.

Land Bank

A government-owned bank that specializes in the need of farmers and fisherfolk.

  • MMF Type: UITF
  • Minimum Investment: Php 5,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 0
  • Trust Fee:  0.25%
  • Exit Fee: None
  • Information as of: 10/02/22

How to Apply for Land Bank’s Money Market Fund

  1. Log in to your LANDBANK MBA. 
  2. In the lower right corner of the screen, click on “More” and select Manage My Accounts > Enroll Additional Own Account > Investment. Enter your UITF Trust Account Number (TAN) including special characters (e.g. dashes “-”) and click submit. 

RCBC

RCBC is one of the largest universal banks in the country. Established in 1960 as a development bank.

  • MMF Type: UITF
  • Minimum Investment: Php 5,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 0
  • Trust Fee:  0.50% of p.a.
  • Exit Fee: None
  • Information as of: 10/02/22

How to Apply for RCBC’s Money Market Fund 

  1. Log in to rcbconlinebanking.com with your account and click ‘Invest in UITF’. Not an RCBC account holder? Enroll here.
  2. Choose whether you wish to open a new UITF account or enroll an existing UITF Account.
  3. Read and understand the terms and conditions; confirm client information then click ‘Submit’.
  4. Next step:
    • For new clients
      • Accomplish the Customer Suitability Assessment (CSA) and select the preferred RCBC UITF.
    • For existing clients
      • Confirm your CSA result and select preferred RCBC UITF then click ‘Submit’.
  5. The system will notify you that the account enrollment was successful. To start investing, you will automatically be redirected to the ‘Add Investment’ page.

PNB

PNB is one of the largest banks in the Philippines. It was established by the Philippine government on July 22, 1916, during the American Era.

  • MMF Type: UITF
  • Minimum Investment: Php 10,000
  • Minimum additional/Subsequent: Php 10,000
  • Minimum Holding Period: 5 banking days
  • Trust Fee: 0.25% of p.a.
  • Exit Fee: 50% of income earned (if any)
  • Information as of: 10/02/22

How to Apply for PNB’s Money Market Fund

  1. Go to the PNB website
  2. Log in to Online banking
  3. Go to Personal account or click the enroll here button to register
  4. Go to the UITF investments tab
  5. Then choose to enroll now
  6. Read the terms and Conditions
  7. Enter all info needed in the client information form provided
  8. Review info was given and Click submit
  9. Nominate your Settlement account
  10. Wait for e-mail notification for approval.
  11. You can now invest

BPI

BPI is the first bank in both the Philippines and Southeast Asia and is also the fourth largest in terms of assets in the Country.

  • MMF Type: PERA
  • Minimum Investment: Php 1,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 0
  • Trust Fee: 0.50% of p.a.
  • Exit Fee: NONE
  • Info. as of: 10/02/22

How to Apply for BPI’s Money Market Fund

  1. Go to the BPI website or use the App
  2. Review our account info
  3. Take the Client’s suitability Assessment
  4. Select Deposit account
  5. Click Submit

Security Bank

Security Bank is a universal bank in the Philippines that was established on June 18, 1951, and is the first Filipino-controlled bank post-World War 2.

  • MMF Type: PERA
  • Minimum Investment: Php 1,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 0
  • Trust Fee: 0.50% of p.a.
  • Exit Fee: NONE
  • Information as of: 10/02/22

How to Apply for Security Bank’s Money Market Fund

  1. Go to the Security Bank online banking website
  2. Enroll Trust Account
    • Go to add/manage accounts
    • Trust account number
    • Click “print”
    • SBOL form will prompt
    • Submit the form to your branch of account
  3. Wait for account activation (1 to 2 business days)
  4. After Activation Go back to the website
  5. Choose Investments Tab
  6. Select Subscribe
  7. Select Trust Account Number
  8. Select CASA
  9. Input amount of subscription
  10. Click Terms and Conditions
  11. Click Submit

Metrobank

Metrobank is the second largest bank in the Philippines. It offers various financial services, from regular banking to insurance.

  • MMF Type: UITF
  • Minimum Investment: Php 50,000
  • Minimum additional/Subsequent: Php 25,000
  • Minimum Holding Period: 7 banking days
  • Trust Fee: 0.25% of p.a.
  • Exit Fee: 0.25% of redemption proceeds
  • Information as of: 10/02/22

How to Apply for Metro Money Market Fund

  1. Go to Metrobank Online.
  2. Log in with your username and password. For new users, click Sign Up and follow the instructions shown on the screen.
  3. Select UITF under the Investments menu then select Enroll UITF Account to begin.

Sun Life Philippines

SunLife Financial is a Canadian financial services company. It is primarily known as a life insurance company.

  • MMF Type: UITF
  • Launch date: June 2007
  • Minimum Investment: Php 100
  • Minimum additional/Subsequent – Php 100
  • Minimum Holding Period: 7 banking days
  • Trust Fee: 0.25% of p.a.
  • Exit Fee: 0.25% of redemption proceeds
  • Information as of: 10/02/22

How to Apply for SunLife’s Money Market Fund

  1. Go to the Sun life website
  2. Click Investments
  3. Click Buy Now
  4. Finish up the ISA
  5. Fill up personal information
  6. Check out

BDO

BDO is a Philippine banking company based in Mandaluyong. In terms of total assets, the firm is the largest bank in the Philippines and the 15th largest in Southeast Asia as of March 31, 2016.

  • MMF Type: PERA
  • Launch date: April 2005
  • Minimum Investment: Php 10,000
  • Minimum additional/Subsequent: Php 10,000
  • Minimum Holding Period: 7 banking days
  • Trust Fee: 0.50% of p.a.
  • Exit Fee: none
  • Information as of: 10/02/22

How to Apply for BDO’s Money Market Fund

  1. You can apply through the website or the BDO Personal online banking app
  2. Log in
  3. Go to BDO and invest online
  4. Go to my trust investments and enter OTP
  5. Provide all necessary details
  6. Select Investment plan
  7. Wait for an email confirmation

PSBank

PSBank It is a subsidiary of Metrobank and is the 2nd-largest savings bank in the Philippines.

  • MMF Type: PERA
  • Minimum Investment: Php 10,000
  • Minimum additional/Subsequent: Php 5,000
  • Minimum Holding Period: 5 banking days
  • Trust Fee: 0.50% of p.a.
  • Exit Fee: 50% of income earned
  • Information as of: 10/02/22

How to Apply for PSBank’s Money Market Fund

  1. New investors:
    • Completely filled-out bank forms:
    • UITF Client Information and Client Suitability Assessment (CICSA) for Individual
    • Signature Card
    • UITF Participating Trust Agreement
    • Risk Disclosure Statement
    • Risk Disclosure Statement
  2. Existing investors:
    • Subscription Order Form – for additional investment
    • Redemption Order Form – for partial or full withdrawal of investment

Manulife

Manulife is a Canadian multinational insurance company and financial services provider headquartered in Toronto, Ontario.

  • MMF Type: UITF
  • Minimum Investment: Php 1,000
  • Minimum additional/Subsequent – Php 1,000
  • Minimum Holding Period: 7 banking days
  • Trust Fee: 0.50% of p.a.
  • Exit Fee: 0.25% 
  • Information as of: 10/02/22

How to Apply for Manulife’s Money Market Fund

  1. Go to Manu Life iFunds log-in page
  2. Click transact
  3. Click subscription
  4. Select fund sub
  5. Click invest
  6. Enter amount
  7. Review information
  8. Agree with terms and Conditions
  9. Confirm identity
  10. Wait for your transaction summary

Maybank

Maybank is a Malaysian universal bank, with key operating “home markets” of Malaysia, Singapore, and Indonesia.

  • MMF Type: UITF
  • Minimum Investment: Php 10,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 30 banking days
  • Trust Fee:  0.50% of p.a.
  • Exit Fee: 25% of net earning (min. Php 500) 
  • Information as of: 10/02/22

How to Apply for Maybank’s Money Market Fund

  • Go to the Maybank PH website or inquire through hotlines

China Bank

China Bank commonly known as China Bank, is a Filipino bank established in 1920. It was the first privately owned local commercial bank in the Philippines.

  • MMF Type: UITF
  • Minimum Investment: Php 5,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 30 banking days
  • Trust Fee:  0.25% of p.a.
  • Exit Fee: None 
  • Information as of: 10/02/22

How to Apply for China Bank’s Money Market Fund 

  1. Log in to the China Bank Mobile App
  2. Select My Account from the post-log-in menu
  3. Tap Add Account, select the UITF Account, then tap Next
  4. Tap Confirm and input OTP sent to your registered mobile number

EastWest Bank

EastWest Bank is the eleventh largest bank in the Philippines in terms of assets. It was founded in 1994 in Manila by Andrew Gotianun.

  • MMF Type: UITF
  • Minimum Investment: Php 5,000
  • Minimum additional/Subsequent: Php 1,000
  • Minimum Holding Period: 30 banking days
  • Trust Fee: 0.25% of p.a.
  • Exit Fee: None 
  • Information as of: 10/02/22

How to Apply for EastWest’s Money Market Fund

  1. Visit the EastWest Bank Branch of choice
  2. Submit all the required documents
    • Account Opening Instruction Form (new account)
    • Trust Customer Information Form – Individual (per signatory)
    • Trust Customer Information Form – Sole Proprietorship, Partnership, Corporation
    • Valid IDs of individual account owners/authorized signatories of corporate accounts
    • Client Suitability Assessment Test (per signatory)
    • Risk Disclosure Statement (per signatory)
    • Investment Declaration, if applicable* (per signatory)
    • UITF Participating Trust Agreement (jointly signed)
    • Letter of Instruction (if applicable)

Money Market Funds FAQs

Are money market funds a good investment?


Generally, market funds are one of the most stable investments. This is because of its low volatility and is less prone to market fluctuations. 

In addition, it is more liquid than other investments with similar returns because usually, you are allowed to withdraw cash or buy other investments quickly.

It is also well-diversified and can provide a tax-efficient income source.

What is the downside of a money market account?


Being an investment and not a savings account, there is no guarantee that you will earn and there is always a possibility that you might lose money.

Also, when interest rates are low so are the money market rates causing you to earn very little. 
Thus these types of investments are not advised for long-term investing because even with higher interest rates this type of investment typically cannot outpace inflation.

Are Money Market Funds Safe?


They are relatively safer than other investments because it matures in a short period of time – usually 13 months.

Risk is minimized because they will invest your money in low-risk assets for a short period of time which gives you a high chance of getting a return.

Disclaimer: All information listed in this article is for information purposes only. Although utmost effort was made to ensure accuracy of information on this website, readers must not solely rely on it in making any investment or financial decision since it does not take into consideration the risk tolerance, financial situation, investment goals, and experience of readers. It is best to consult a professional financial planner or your bank before investing to make a more informed choice and limit your risk exposure.

About Migs Palispis

Miguel Palispis is a freelance writer at Grit PH.

He started his freelancing adventure in 2018 and began doing freelance Audio Engineering work (mixing for bands and Podcasts) and is also currently writing tech news and tech reviews for Gadget Pilipinas.

He is also a musician, foody, gamer, and PC enthusiast.

Education: College of Saint Benilde (Bachelor of Arts in Music Production)
Focus: Tech, Finance, and Business

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