Unit Investment Trust Funds (uitf)

[mister_mahilig]

My suggestion is put it all in an equity fund and watch it grow!

[Dr_PepPeR]

My suggestion is put it all in an equity fund and watch it grow!

 

As long as the stock market moves up, it will.

[HOT PAPA]

a friend of mine lost p200k investing in equity for 10 months, nag-out lang siya this week.......

[WayKurat]

buy blue chips stocks that are now down by almost 70% of their value. in three years time watch your investment grow 3x.

[kadafy]

you don't invest in equity & expect to gain from it in 10 months. i think.

 

uitfs are supposed to be mid to long term investments. kung gusto nya ng sure gain in a short span of time eh sana nag SDA na lang sya, IMO.

[arabianknight]

My suggestion is put it all in an equity fund and watch it grow!

 

thanks to your advice mr.mahilig.

 

but what i understand to all financial term is "diversify" is the key word.

 

i don't know if my understanding is right.

[arabianknight]

a friend of mine lost p200k investing in equity for 10 months, nag-out lang siya this week.......

 

this is the reason why i don't want to put all my savings to equity investment.

[arabianknight]

you don't invest in equity & expect to gain from it in 10 months. i think.

 

uitfs are supposed to be mid to long term investments. kung gusto nya ng sure gain in a short span of time eh sana nag SDA na lang sya, IMO.

 

sir kadafy. any idea what is the minimum placement for SDA, which banks are offering this type of investment and what is the minimum holding period?

[Dr_PepPeR]

sir kadafy. any idea what is the minimum placement for SDA, which banks are offering this type of investment and what is the minimum holding period?

 

Usually minimum amount for an SDA placement opened thru a trust department is P1 Million, tenors are usually for 30 days.

[kamandag7]

Thanks Doc to your advice.

Yes, this will be in a five years investment horizon. But I don't have any experience in other investment as you mentioned. My other investment are simply US$ TD, PESO TD and savings accounts. Do you think for a novice like me, if I try the UITF or Mutual Fund will serve my purpose?

 

Ex: 50% equity or balance fund

30% money market

20% bond

 

Note: Im willing to take the risk for equity investment coz i still have the time to recover the lost.

 

Thanks.

sir

 

for me 1.) 50% of your money invest on SDA right now they are offering @ 4.85% net

 

2.) 20% on asset like real estate or property

 

3.) 20% on bond or stock market

 

4.) 10% equity or balance fund ....

 

if you don't have no. 1 don't jump on no.4 as well if you don't no.2 don't go to no.3. this would secure on what you have. your hard earn money

 

will not go into bad investment.. in case of emergency any time you can use it . sometimes when we invest in equity it would take years before

 

you can recover on what you have lost... when your investment is not gaining .. it's hard to sleep @ night you keep on thinking on your investment.

 

if you invest a part of your hard earn money on equity . your on the safe side always if you lost it all . you still have you top 3 on the list.

[teban]

hi guys was just want to ask the following:

1.) what bank do you think has the best asset manager as of the moment? coz I know that asset managers are the ones who handle the UITFs right

2.) I am looking at BPI website and I see some holding period. Could someone explain more about how uitfs conditions on holding?

3.) Lastly, based on my analysis this time is relatively a good time to get in right since the stocks are down. Any input on this one?

 

thanks!

[Dr_PepPeR]

hi guys was just want to ask the following:

1.) what bank do you think has the best asset manager as of the moment? coz I know that asset managers are the ones who handle the UITFs right

2.) I am looking at BPI website and I see some holding period. Could someone explain more about how uitfs conditions on holding?

3.) Lastly, based on my analysis this time is relatively a good time to get in right since the stocks are down. Any input on this one?

 

thanks!

 

1. The big banks will have the best asset managers in terms of qualifications. Why? Because they can afford to hire the best. That being said, the best qualifications don't guarantee the best decisions. I think what you should look at is which bank has the best performing UITFs.

 

2. A holding period is the period of time from the initial subscription where you cannot redeem or withdraw without penalties. Most UITFs have holding periods of 30 to 90 days.

 

3. Yes, it might be a good time to get into UITFs that are balanced or equity funds since these are the funds that have investments in equity.

Edited October 15, 2008 by Dr_PepPeR

[teban]

thanks doc pep ever reliable ka talaga thanks ulit

[Guest lustfortravel]

1. The big banks will have the best asset managers in terms of qualifications. Why? Because they can afford to hire the best. That being said, the best qualifications don't guarantee the best decisions. I think what you should look at is which bank has the best performing UITFs.

 

2. A holding period is the period of time from the initial subscription where you cannot redeem or withdraw without penalties. Most UITFs have holding periods of 30 to 90 days.

 

3. Yes, it might be a good time to get into UITFs that are balanced or equity funds since these are the funds that have investments in equity.

 

 

thanks doc pep ever reliable ka talaga thanks ulit

 

just to add to dr. pepper's opinion, check your investment horizon also. the holding period doesn't guarantee you will have gains at the end of the period. uitfs are best for people with medium to long term horizons - say two to three years, even as long as five years, depending on what type of uitf you buy. that's the only way you can maximize the possible ( not guaranteed) returns.

[Dr_PepPeR]

just to add to dr. pepper's opinion, check your investment horizon also. the holding period doesn't guarantee you will have gains at the end of the period. uitfs are best for people with medium to long term horizons - say two to three years, even as long as five years, depending on what type of uitf you buy. that's the only way you can maximize the possible ( not guaranteed) returns.

 

Thanks lustfortravel!

[HOT PAPA]

1. The big banks will have the best asset managers in terms of qualifications. Why? Because they can afford to hire the best. That being said, the best qualifications don't guarantee the best decisions. I think what you should look at is which bank has the best performing UITFs.

 

2. A holding period is the period of time from the initial subscription where you cannot redeem or withdraw without penalties. Most UITFs have holding periods of 30 to 90 days.

 

3. Yes, it might be a good time to get into UITFs that are balanced or equity funds since these are the funds that have investments in equity.

 

doc pep, malaki ang bagsak ng equity funds kasi sumusunod siya sa movement ng stock market.......

[Dr_PepPeR]

doc pep, malaki ang bagsak ng equity funds kasi sumusunod siya sa movement ng stock market.......

 

That's true and that may be a good reason to buy, you know, buy low and sell high right?

[teban]

speaking of which this is the exact reason i would want to buy as well. Medyo natawa lang ako sa tellers ng isang bank before kasi parang dinidiscourage nila yung mga tao na bumili kasi nga daw mababa ngayon ehehhe

[telemaster_311]

hello,

 

just a question about UITF. a friend of mine made a placement (UITF) with this universal bank, when he check the balance it has decreased...the bank rep said "nalugi daw yun investment" mas ok daw kung iwan yun pera para makabawi. paano nangyari yun ganito?

[Dr_PepPeR]

hello,

 

just a question about UITF. a friend of mine made a placement (UITF) with this universal bank, when he check the balance it has decreased...the bank rep said "nalugi daw yun investment" mas ok daw kung iwan yun pera para makabawi. paano nangyari yun ganito?

 

The assets of the UITF are valued at market. So if your friend subscribed for one unit at 1.50 and when he checks the NAVPU (Net Asset Value Per Unit) after a few days it is now 1.25, then he has an unrealized loss of .25 IF he decides to get out or redeem on that day. If on some future day the NAVPU goes over 1.50, then if he redeems he will have a net income of whatever amount it increased to. I think this should have been properly explained to him before he made an investment in the UITF.

[G.I.]

doc pep, can you recommend me which bank to invest UITF? i have P50K bucks to spare. Im interested in balance fund

[Guest lustfortravel]

doc pep, can you recommend me which bank to invest UITF? i have P50K bucks to spare. Im interested in balance fund

 

well, i do hope you have a long term investment horizon then, and i mean years not months. i'm sure dr. pepper can explain it better.

[Guest lustfortravel]

1. The big banks will have the best asset managers in terms of qualifications. Why? Because they can afford to hire the best. That being said, the best qualifications don't guarantee the best decisions.

 

i'd have to agree with you on this, especially the portion i highlighted in red. you can just imagine what happens when they make the wrong decision and the price plummets; it's one heck of a scramble to "comply" with the mark to market valuations at the same time make them look good to the public . in short, they would have to cover their s@%t.

 

but i digress. back to regular programming then.

Edited November 5, 2008 by lustfortravel

[rapturousone]

doc pep, can you recommend me which bank to invest UITF? i have P50K bucks to spare. Im interested in balance fund

 

somebody from bpi is going to love me for this.

 

buddy, take a look at bpi's balanced fund. when it launched in 2005 it was Php68. it soared to a height of Php107 in june 2007. since then it has careened, slid, crashed, and plummeted like Wile E. Coyote falling from a cliff holding to an ACME anvil to Php78. now some people may say that this NAVPU is cheap.

 

but then again....Wile E. Coyote really has a knack for falling...again....and again....and again.

[Guest lustfortravel]

somebody from bpi is going to love me for this.

 

buddy, take a look at bpi's balanced fund. when it launched in 2005 it was Php68. it soared to a height of Php107 in june 2007. since then it has careened, slid, crashed, and plummeted like Wile E. Coyote falling from a cliff holding to an ACME anvil to Php78. now some people may say that this NAVPU is cheap.

 

but then again....Wile E. Coyote really has a knack for falling...again....and again....and again.

 

i believe bpi has stopped offering the balanced fund to new clients. they are only maintaining the fund for existing clients.

Edited November 5, 2008 by lustfortravel