The following does not constitute investment advice.
MANILA, Philippines — If you happened to have placed money with Pag-IBIG's MP2 program for the entire 2020, your investment already grew by 6.12% in dividends.
MP2's latest dividend payout is lower than 2019's 7.23% growth. But 6.12% is still considered a better-than-decent performance in a year when the COVID-19 pandemic afflicted the economy.
| Year | MP2 Dividends |
|---|---|
| 2020 | 6.12% |
| 2019 | 7.23% |
| 2018 | 7.41% |
Why it matters: This rounds up the MP2's cumulative dividend growth to 20.76% since 2018, making the fund among the most attractive available for beginner investors looking for low-risk opportunities. In comparison:
- Retail Treasury Bond holders expect to grow their investments by 2.375% in three years.
- Money market funds for investors with a low-risk appetite such as ALFM's had a three-year return of 3.27%.
- A bond-based mutual fund, particularly the Philam Managed Income Fund, saw a three-year yield of 4.4%.
The MP2 or Modified Pag-IBIG program, a specialty savings facility of the state-run mutual fund, grows members' voluntary savings for a five-year maturity period.
- "[It is] designed for Pag-IBIG Fund members who wish to save more and earn even higher dividends, in addition to their Pag-IBIG Regular Savings," Pag-IBIG says on its website.
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Read The Budgetarian's three-part report on the MP2 program:
- 3 big reasons why Filipinos chose to save money under Pag-IBIG MP2
- Is Pag-IBIG’s MP2 Program right for you? 3 factors to consider
- Compound, lump, forget: How to get the best results for your money with Pag-IBIG's MP2