Unit Investment Trust Funds (uitf)

[Dr_PepPeR]

Is now a good time to invest on UITFs? Which one, fixed income or balanced? Are BPI UITFs performing well?

 

This type of question is hard to answer without profiling. If you are looking to make short term gains, take note that some UITFs have holding periods which could run from 30 to 90 days. The general rule regarding UITFs is you come in when the NAVPU is low and get out when the NAVPU is high. Also bear in mind that most UITFs are relatively long term in terms of achieving a gain, that is, if you want to come out on the positive side, you may have to stay in for a period of around a year or so.

[arabianknight]

This is a nice thread and it seems a lot of smart guys in the field of personal finance are in the house. :cool:

[arabianknight]

Guys I need your advice.

 

When my daughter was 1 year old, I got her a pre-need plan for her college. And you know what happened with these pre-need companies. Our investment for her college was gone.

 

Now I want to start again to invest for her college but for sure not a pre-need plan.

 

Assuming that she will take 5 years course and it will cost PH100,000 per year for her tuition with the current average tuition fee. That will requires me to put PH500,000 for her college fund.

 

She will be in college after 5 years from now. Take the inflation average of 7% per year, the value of 500,000 college fund will not be the same after 5 years. Maybe I may need to put approx. PH700,000 that time when she will attend college.

 

My question now is, if I have the PH500,000 now, WHERE to invest this amount just to at least beat the inflation rate or to gain at least in a minimal interest after inflation.

 

TIA

[Dr_PepPeR]

Guys I need your advice.

 

When my daughter was 1 year old, I got her a pre-need plan for her college. And you know what happened with these pre-need companies. Our investment for her college was gone.

 

Now I want to start again to invest for her college but for sure not a pre-need plan.

 

Assuming that she will take 5 years course and it will cost PH100,000 per year for her tuition with the current average tuition fee. That will requires me to put PH500,000 for her college fund.

 

She will be in college after 5 years from now. Take the inflation average of 7% per year, the value of 500,000 college fund will not be the same after 5 years. Maybe I may need to put approx. PH700,000 that time when she will attend college.

 

My question now is, if I have the PH500,000 now, WHERE to invest this amount just to at least beat the inflation rate or to gain at least in a minimal interest after inflation.

 

TIA

 

Considering that this is more likely a five year investment horizon, you may choose to invest in a corporate five year note or a Tier Two offering. Since it is for at least five years, it is tax exempt and will at least put you ahead of inflation. If you don't feel comfortablw with choosing a five year instrument, try to visit a trust department and let them invest it for you for five years.

[arabianknight]

Considering that this is more likely a five year investment horizon, you may choose to invest in a corporate five year note or a Tier Two offering. Since it is for at least five years, it is tax exempt and will at least put you ahead of inflation. If you don't feel comfortablw with choosing a five year instrument, try to visit a trust department and let them invest it for you for five years.

 

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.

[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.