How to invest in UITF or Unit Investment Trust Funds?

How to invest in UITF or Unit Investment Trust Funds?

I received a lot of inquiries last week regarding pooled funds and other investment vehicles. My previous post regarding Mutual Funds garnered questions regarding UITF and a lot instantly asked how and where to open UITF so I decided to write this post to further clarify UITF.

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UITF or Unit Investment Trust Funds: What Are They?

Unit Investment Trust Funds or UITF are pooled funds offered by the trust department of the major banks of the country. Putting your money in UITF is much more easier that investing directly in the Stock market. You no need to worry as your investments will be handled by a Professional Fund Manager of the bank (UITF’s) and will go all-out to give higher returns for your investment.

I mostly recommend investing in Mutual Funds or UITF for people that don’t have much time to monitor their investments or for people who don’t have time to study Stock Market Investing. Let the professional fund managers handle your investments.

What are the types of UITFs available in the market?

-(from http://www.uitf.com.ph)

UITFs are established and managed based on a set of investment objectives and strategies, and these have varying levels of risks and returns. UITFs may be denominated in Philippine Pesos, US Dollars and acceptable third currencies. Following are the four general major classifications of UITFs listed according to ascending levels of risk, return and investment  time horizon:

Money Market Funds

These funds are invested principally in short term, fixed income deposits and securities with a portfolio duration of one year or less.

Bond Funds

The mandate of these funds is to invest in a portfolio of bonds and other similar fixed income securities with portfolio duration which may exceed one year. These may further be classified into Intermediate Funds (where the fund mandate limits the duration up to 3 years), Medium Term Funds (where the fund mandate allows a duration of up to 5 years) and Long Term Funds (where the fund mandate allows a duration of greater than 5 years).

Balanced Funds

The mandate of these funds is to invest in a diversified portfolio of bonds and stocks where investments in stocks shall be up to a maximum of 40% to 60% of the fund, with the balance invested in fixed income securities.

Equity Funds

The mandate of these funds is to invest substantially in equities. Cash may be kept for liquidity and portfolio re-balancing purposes.

 

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Where to Invest?

You may check BPI and BDO UITF.

I recommend to study about UITF’s or other financial vehicles further before deciding to put your money in them. Don’t invest your hard earned money in anything unless you understand it fully.

If you want to know more regarding Investment vehicles then subscribe now, to my blog Super OFW Investor and feel free to share and comment below.

 

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Nolan Lazaro
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9 Comments
  • Ms. Yam
    Posted at 14:18h, 25 August Reply

    Hi,

    Do you conduct seminars such as UIF. I am not sure if this is the correct term but I just read your article last Aug. 5, 2014. I currently working here at Singapore and I am interested about investing.

    Thanks and best regards,

    Ms. Yam

  • nolanray
    Posted at 14:52h, 25 August Reply

    Hi Ms. Yam!
    I do meet ups and freely discuss Unit Investment Trust Funds and other investment vehicles too.
    You can invite your friends so we can discuss Financial literacy.
    I am an active member of TGFI.
    By the way you can also read my previous post to boost you info regarding UITF
    http://www.nolanlazaro.com/what-happens-to-my-uitf-investment-when-the-bank-closes-down/
    You can subscribe to my blog to continuously receive updates from me regarding financial literacy 🙂

  • warren
    Posted at 05:38h, 14 September Reply

    hi nolan, do you have any attachnent ti BPI and BDO?

    • nolanray
      Posted at 11:36h, 14 September Reply

      Hi Warren!
      Welcome to the blog Super OFW Investor!
      I am not in any way connected to any banks like BDO, BPI or Unionbank.
      I may have mentioned them in some of the articles because I have UITF account with BDO and Unionbank.
      Thank you for the question and I hope you enjoy your stay here.

  • nolanray
    Posted at 13:55h, 08 October Reply

    I am not in any way connected to any banks like BDO, BPI or Unionbank.

  • armida wilma a.perez
    Posted at 14:10h, 22 January Reply

    Hi! How much is the starting fund to open an uitf? Thanks!!

    • Administrator
      Posted at 14:57h, 22 January Reply

      HI Armida!
      for BDO UITF – Equity Fund, the starting fund or amount to open an account is P10,000. You can check it here.

      The minimum investment depends on the banks that offers UITF. 🙂

  • Mark3
    Posted at 23:09h, 07 June Reply

    Hello, do you allow guest posting on nolanlazaro.com ? 🙂 Please let me know on my e-mail

    • Administrator
      Posted at 20:10h, 13 June Reply

      hi! Yes, I do allow guest posting as long as the topic is about OFW, FInancial Literacy, Monet Matters and Entrep. Thanks

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