Unit Investment Trust Funds (uitf)

[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