GFunds with Dividends for Beginners

What Are You Really Buying When You Chase Dividends?

You’ve probably seen it—funds boasting 4%, 5%, sometimes even 8% dividend yields. That sounds great on paper. But before you jump in, ask yourself: Are you buying consistent cash flow, or are you risking capital erosion just for monthly payouts?

Dividend funds pay out a portion of the earnings to you, the investor. That income is nice—but only if the fund or stock itself isn’t declining in value. Otherwise, you're just slowly eating away your own capital.

Would you rather get ₱10 monthly while your ₱1,000 turns into ₱900? Or wait a bit, get smaller payouts, but grow your ₱1,000 into ₱1,300 over time?

If you're investing for passive income, the question isn’t just about dividends—it's about sustainability. How long can the fund keep paying, and at what cost?

What are GFunds and how do dividends work?

GFunds is a digital investment platform within the GCash app. It allows you to invest in mutual funds with as little as ₱50, offering exposure to both local and global markets. You're not buying individual stocks—instead, you're pooling money with other investors in a professionally managed fund.

When the fund earns money—whether through interest, capital gains, or dividends—those earnings are automatically reinvested. This means you buy more fund units without needing to take any action. Over time, this compounding effect can grow your investment more efficiently than just holding cash.

You don't need to manually claim dividends. The reinvestment happens in the background, helping you build wealth passively—so long as you stay invested.

Why young professionals should care

You may not earn a six-figure salary yet, but time is on your side. Starting early—even with small amounts—can lead to larger gains in the long run. GFunds lowers the barrier of entry, so you don’t have to wait until you’re wealthy to begin investing.

Investing regularly, even just ₱200 per week, builds the habit and gives your money more time to grow. With dividends reinvested and markets compounding, your early contributions could matter more than larger ones later.

If you want a future with less financial stress, GFunds offers a way to start building passive income now—without needing to master the stock market.

The 3 Dividend-Paying GFunds to Start With

1. PhilEquity Dividend Yield Fund (PEDY)

What it invests in: High-dividend Philippine companies like PLDT, Globe, and GMA7
Dividend frequency or track record: Semi-annual payouts (depends on market performance)
Minimum required amount: ₱1,000
Why it’s suitable for beginners: Focuses on stable, dividend-paying companies. Offers a balance of income and moderate growth.

2. ALFM Global Multi-Asset Income Fund

What it invests in: Global dividend stocks, bonds, and REITs
Dividend frequency or track record: Monthly payouts (usually credited to GCash wallet)
Minimum required amount: ₱1,000
Why it’s suitable for beginners: Offers monthly income, global diversification, and steady cash flow without active monitoring.

3. ATRAM Total Return Peso Bond Fund

What it invests in: Philippine government and corporate bonds
Dividend frequency or track record: No fixed dividends; total return increases gradually
Minimum required amount: ₱50
Why it’s suitable for beginners: Ideal for conservative investors. Low-risk with flexible withdrawal options and consistent growth.

How much can you earn with just ₱1,000?

₱1,000 might not seem like much, but when used strategically, it can grow. The key is knowing where to place it and how long to let it grow. Let's break it down.

GCash GSave (2.6% p.a.):
Interest is calculated daily and paid monthly.
With ₱1,000 saved for 12 months, your earnings = ₱1,000 × 0.026 = ₱26/year.
GCash BPI MySaveUp (2.5% p.a.):
If you deposit ₱1,000 and don’t touch it for a year, you’ll earn around ₱25 in interest.
GCash Money Market Fund (around 4–5% p.a. historically):
₱1,000 invested in this fund could grow by ₱40 to ₱50 in a year. This depends on the market performance.
GCash PisoNet (Buy Load feature):
Buy load for others and earn 5% cashback.
₱1,000 worth of load = ₱50 in rebates.
If you repeat this monthly, that’s ₱600 per year.
GCash QR to Bank Transfer Arbitrage:
Some users receive QR payments with cashback or promo vouchers. You can earn ₱10–₱100 during promo periods.
GCrypto (Cryptocurrency):
High risk, high reward.
Your ₱1,000 could double—or drop—depending on how the market moves. This is only recommended if you understand how crypto works.

Each method gives you a different return, risk level, and liquidity. What's your goal—steady growth, fast cashback, or experimenting with crypto?

What to Watch: NAVPU, Units, Timing

When you invest in a GFund, you’re not buying shares like in the stock market. You’re buying units. The value of each unit is called the NAVPU—Net Asset Value Per Unit.

NAVPU changes daily based on the fund's performance. If you buy when the NAVPU is low and it goes up over time, your investment grows—even without counting dividends. But if you buy high and redeem during a dip, you could lose money.

NAVPU

Think of it like the price of one unit of the fund.
You earn when the NAVPU increases and/or you receive dividends.

Units

Your money buys a specific number of units based on the current NAVPU.
Example: ₱1,000 investment ÷ NAVPU of ₱1.20 = 833.33 units.
When NAVPU grows to ₱1.50, your 833.33 units are now worth ₱1,250.

Timing

You can’t “time” the market, but consistency helps reduce risk.
Watch for general trends: buy during dips, hold through growth.
Remember: GFunds aren’t for day trading. Let time do the work.

If you’re just starting, don’t obsess over daily NAVPU movements. Focus on understanding your fund and getting used to the rhythm of investing.

Realistic Next Steps

Track your spending for 30 days. See if you can consistently set aside ₱50 or ₱1,000 a month.
Open an online investment account. Look into trusted providers like GInvest, BPI Invest, or Sun Life Prosperity Card.
Start with a balanced fund. If you're unsure, balanced funds offer a mix of stocks and bonds, giving you exposure to both.
Set a calendar reminder to review your investment. Once a month is enough to stay informed without obsessing over performance.
Build consistency, not perfection. Missed a month? Just continue the next month. It's the habit that matters.

Final Word

Mutual funds can make your ₱1,000 work harder. But it's not magic. If you’re expecting overnight returns or guaranteed profit, you’re in the wrong place. The real power lies in consistency, time, and understanding what you’re getting into.

It’s okay to start small. The important thing is you start. Learn as you go, track your progress, and adjust when needed.

Ready to get started?

Review your budget—can you commit ₱50 or ₱1,000 regularly?
Explore mutual fund providers like Philequity, ATRAM, or Sun Life.
Check historical NAVPU and fees. Start reading fund fact sheets.
Ask yourself: What’s my goal? Growth? Stability? Passive income?

The earlier you start, the more time your money has to grow.

Start Your Investment Journey

Ready to take the first step? Download the GCash app and explore GFunds today. Invest as little as ₱50 and watch your money grow with dividends.

Download GCash

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GFunds That Pay You: Exploring Dividends for Young Investors