Unit Investment Trust Funds (uitf)

[Dr_PepPeR]

I need help guys. i have a few cash in excess that im planning on investing. maliit lang nmn. Let say im willing to invest 10k to 20k just to test the market. san ko mgandang ilagay? im willing to let it stay nmn ng long term e kc excess nga. Gus2 ko lng ung hindi nmn patalo kung mginvest ako kc kung gnun lng din e d s gmik n lng gastusin hehehehe. But kidding aside im dead serious. mtgal tgal n din kc ako ngwowork and feeling ko d gnun kbilis ung pglago ng pera ko s simpleng savings account lang. i just wanna try something else. Advise lang mga boss. Slamat.

 

Of course, I would suggest a UITF peso fund in one of the bigger banks. Due to the variety of UITFs that they manage, you can find one that will fit your investment amount. You don't have to stay too long in a UITF account. After the holding period (30 to 90 days depending on the UITF product), you can go out anytime. So far all the Peso Fixed Income UITFs have been doing rather well lately.

[loudchild]

Thanks doc. Coming from an expert on this (been reading ur posts and i find them very informative... d lng d2 s thread n 2 hehe) i think i'll go for the UITF n din. I'll open 1 with BDO.

[julz2006]

been monitoring this thread for a while now and it gets exciting every time..a couple of questions:could we know where the banks invest these pooled resources from us?would they tell us?...it's nice to diversify but if i will be investing on this or that uitf or even mutual funds how would we know they (banks,investment houses,etc.) don't invest the bucks on similar equities or bonds or any same investment opportunities?to make sure you are really "diversifying"?

 

just curious...cheers!

[golfer697]

doc, uitf ko with metrobank and bpi dati asked me to stay minimum of one year (mostly applies to all) and if i want to withdraw early, mataas binayaran ko (asar nga kasi wala na nga kinita yung pera, binawasan pa nila ng surcharges, etc.) kaya i'm burned na din.

 

 

They usually advise you to stay in for a minimum of 1 year but its your choice actually. Metrobank only charges you for pretermination if you withdraw before the lock in period of 90 days.

[Guest lene]

been monitoring this thread for a while now and it gets exciting every time..a couple of questions:could we know where the banks invest these pooled resources from us?would they tell us?...it's nice to diversify but if i will be investing on this or that uitf or even mutual funds how would we know they (banks,investment houses,etc.) don't invest the bucks on similar equities or bonds or any same investment opportunities?to make sure you are really "diversifying"?

 

just curious...cheers!

 

choose banks/institutions that are reputable and who believe in transparency in terms of reporting. the reputable banks do give monthly updates on the fund performance and where the money is invested in ( 80% in govt. securities,10% in preferred shares, etc).

[Guest lene]

They usually advise you to stay in for a minimum of 1 year but its your choice actually. Metrobank only charges you for pretermination if you withdraw before the lock in period of 90 days.

 

golfer697 is right. clients would be advised to stay for a minimum of 1 year ( even more for certain type of uitfs) so that they would be able to ride out any fluctuations in the prices if they have a long term view on the investment. you can actually withdraw after the holding period of the fund ( even before, but subject to fees for certain banks) but if market is against you when you withdraw, then you would have realized the loss instead.

 

before buying any uitf, try to understand the risks you are willing to take and find a specific fund that you would be comfortable with and will fit with your investment goals/periods.

[spadon]

Invested in a mix of 40% fixed income, 40% bond and 20% equity funds six months ago. The total fund returns 21%. Had I invested in a 60% equity, 20% fixed income and 20% bonds then, returns would have been something like 43%. Darn!

[julz2006]

choose banks/institutions that are reputable and who believe in transparency in terms of reporting. the reputable banks do give monthly updates on the fund performance and where the money is invested in ( 80% in govt. securities,10% in preferred shares, etc).

 

..thanks so much,lene...will keep that in mind..i think it's bdo for me..if m not mistaken,witholding period is just 30days for their balanced fund some others(m keeping it minimal--just checking if things will work out fine--risk is ok,i know it's there..)so,will just see how it will go and take it from there..thnks..

[golfer697]

..thanks so much,lene...will keep that in mind..i think it's bdo for me..if m not mistaken,witholding period is just 30days for their balanced fund some others(m keeping it minimal--just checking if things will work out fine--risk is ok,i know it's there..)so,will just see how it will go and take it from there..thnks..

 

 

BDO's dollar UITF is constant at around 6%. Peso around 10%. Balanced fund is up & down, more fluctuations than metro.

[tombone]

I put my money in EBC and HSBC Equity fund for EBC is 30 day holding period and on HSBC is 15 day . On HSBC i need to have a buffer that will hold for 6 month then the rest i can move it on 15 day since i'm a premier member so they are more accomodating. For me BDO UTIF is slow moving upward but the risk is lower comparing my HSBC ING dollar fund is move faster almost 8-10% is the return .

[rdy1437]

I put my money in EBC and HSBC Equity fund for EBC is 30 day holding period and on HSBC is 15 day . On HSBC i need to have a buffer that will hold for 6 month then the rest i can move it on 15 day since i'm a premier member so they are more accomodating. For me BDO UTIF is slow moving upward but the risk is lower comparing my HSBC ING dollar fund is move faster almost 8-10% is the return .

 

 

Tombone, gaano ka na katagal nag invest sa HSBC? Ok ba? how much ang investment mo? I did some research on UITF before and found out that ING ang may pinaka magandang performance.Pero ang laki ng min investment nila so pinasa ako sa partners nila which is HSBC nga. Nung nag inquire naman ako sa HSBC, 500k ang minimun nila.by last quarter of this year siguro ako mag invest sa HSBC. pinag iipunan ko pa kasi yng 500k..

[tombone]

i invest in HSBC ING only this january, the return so far is good compare to my other uitf . Yes the initial is big and to get a better bargain one have to be premier member so that there is discount on the entrance rate.

[golfer697]

I put my money in EBC and HSBC Equity fund for EBC is 30 day holding period and on HSBC is 15 day . On HSBC i need to have a buffer that will hold for 6 month then the rest i can move it on 15 day since i'm a premier member so they are more accomodating. For me BDO UTIF is slow moving upward but the risk is lower comparing my HSBC ING dollar fund is move faster almost 8-10% is the return .

 

 

Hmmm... Will check out EBC & HSBC for the Equity funds. Will stick with Metro for my dollar funds since I'm getting more than 10% anyway!

[Dr_PepPeR]

choose banks/institutions that are reputable and who believe in transparency in terms of reporting. the reputable banks do give monthly updates on the fund performance and where the money is invested in ( 80% in govt. securities,10% in preferred shares, etc).

 

If we are talking of UITFs here, the portfolio/asset allocations are required to be disclosed in all marketing materials of the Bank, such as 40% equities if it is a balanced/equity fund or maximum of 20% in cash if it is a fixed income fund. Furthermore, Under BSP Circular 447, UITFs are required to do a quarterly disclosure to their subscribers, usually made available thru the bank's branches, which shows the present holdings as well as the allowable holdings of the UITF plus all charges and expenses that is borne by the fund. Lene is correct in that the bigger reputable banks do this monthly, sometimes on a weekly basis, and some even make these available on their webpage. But generally, even before you make a subscription, you have the right to know where the funds are currently invested, and what other instruments or securities they are allowed to invest in. Just go to the branch or you can ask their Trust Department directly.

[golfer697]

nung 2005, i got 26% sa dollar placement ko with metrobank/axa.

 

grabe, ang ganda mag-invest nun sa uitf.

 

 

Correct!!! But those days are gone - sadly!!! Woe to those who are living on interest! Double whammy pa! Low returns na & the dollar keeps going down!