Big risk, big rewards – this is the most common description of equity funds, which are funds invested in stocks. The high earning potential of equity funds make it appealing to investors with a considerable tolerance for risk.
While many are interested in the gains that the equity fund can offer, there are still some who are wary about the volatility that comes with it. With such investors in mind, Sun Life of Canada (Philippines) Inc. introduces Growth PLUS Fund, a new peso-denominated equity fund that not only accesses upside opportunities, but can also limit downside risk relative to its current equity funds. Growth PLUS Fund is available as a fund option to any of Sun Life’s Peso variable life insurance products. Variable life insurance products provide life insurance coverage along with opportunities to invest in different funds.
Growth PLUS Fund invests in a diverse portfolio of high dividend-paying equity instruments issued by high-quality and financially-stable companies. It adopts an active portfolio management strategy which allows the fund to swiftly reallocate equity assets as needed, within its investment mandate. Its aggressive characteristics allow one to enjoy higher potential earnings offered by investing in stocks as this product seeks to provide long-term capital growth. At the same time, consistent and diverse dividend earnings present in the fund’s underlying assets provide the fund some stability which can cushion the impact of a drop in stock prices during a market downturn.
“Growth PLUS Fund is a fresh take on equity investment and is an ideal addition to one’s portfolio for diversification,” Sun Life Chief Marketing Officer Mylene Lopa explained. “It’s a new way of investing in stocks because aside from offering the usual upside earning potential, the dividend earnings from its underlying assets can also provide some stability to cushion possible downward movement of stock prices.”
The launch of Growth PLUS Fund is among Sun Life’s many initiatives in line with its 120th anniversary in the Philippines. “As we mark this milestone in our company, we remain passionate about helping Filipinos achieve financial security. We will continue to do what we can in order to see this vision through, and that includes creating new products that will cater to the Filipinos’ different needs and preferences, and further enhancing our financial literacy advocacy,” Lopa said.