Unit Investment Trust Funds (uitf)

[Dr_PepPeR]

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.

 

Unfortunately ms. lustfortravel is right. I really can't explain it better but in order to get a reasonable rate of return for your UITF subscription, you have to have a relatively long investment horizon, which means you must be prepared to leave it there for a few years. If you're savvy enough, you can go in and out of UITFs to get gains, provided you take into account each UITF's holding period. I really can't recommend any balanced UITF right now, as I never watched the balanced and equity UITFs. You may want to take a look at the historical performance of the balanced UITFs of the big banks, both local and foreign and use that as a guide. Then see the fine print - historical performance is not a guarantee of future returns. Right now, I think it's better to stay short and see which way the interest yield curve will go.

[rapturousone]

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

 

is that so? should that be taken as a sign of prudence on the part of the bank? pessimism perhaps? i thought it was up to the client's risk appetite to determine whether or not to go into the market. a fool and his gold are soon parted.

[teban]

a month before hindi na inaallow ng BPI na magplace sa equity (i am not sure about the other products) sa family and sa BPI Trade kelangan daw over the counter sa BPI mismo. Now i am not sure kung hindi na din sila nagoofer ng equity.

Ang point of view ko lang malaking company din si BPI and this is my favorite bank so far. Baka naman ayaw nila magoffer kasi kinoconsider nila yung money ng mga tao and ayaw nila na maassociate sa kanila ung reason for the loss of the money of their clients.

[Guest lustfortravel]

is that so? should that be taken as a sign of prudence on the part of the bank? pessimism perhaps? i thought it was up to the client's risk appetite to determine whether or not to go into the market. a fool and his gold are soon parted.

 

i think it was to lessen the number of funds they had to manage. like if you wanted something like balanced fund, then place 50% in equity fund and 50% in a fixed income fund. there you have it, a balanced fund.

 

a month before hindi na inaallow ng BPI na magplace sa equity (i am not sure about the other products) sa family and sa BPI Trade kelangan daw over the counter sa BPI mismo. Now i am not sure kung hindi na din sila nagoofer ng equity.

Ang point of view ko lang malaking company din si BPI and this is my favorite bank so far. Baka naman ayaw nila magoffer kasi kinoconsider nila yung money ng mga tao and ayaw nila na maassociate sa kanila ung reason for the loss of the money of their clients.

 

i'm not sure if i understood your inquiry correctly . what don't they want to offer? i asked my bpi relationship manager and he said if you want to buy into an equity fund which is a managed fund, you will have to do it in the branch - that's over the counter. if you wish to buy equity or stocks directly, meaning you don't want to be part of a pool of funds , you can do it via bpi trade which is their internet trading site. there's a difference between the two.

 

if you buy into an equity fund, you should know the risks involved and would be willing to take the risks for possible higher returns. i don't think bpi or any other bank that offers equity fund will "refuse" to sell such a product - after all, it is presumed that they have conducted a client suitability test to determine your risk appetite.

Edited November 6, 2008 by lustfortravel

[flashman]

hi guys, i have 200k cash on hand right now and im planning to invest in balanced and equity fund at BDO, any comments on BDO right now? Another thing, where can i search for the NAVPU of BDO? thanks.

[flashman]

hi guys, i have 200k cash on hand right now and im planning to invest in balanced and equity fund at BDO, any comments on BDO right now? Another thing, where can i search for the NAVPU of BDO? thanks.

 

 

Oooppss i already found the NAVPU of BDO. darn me for not looking on their website. haha.

[kb824]

before the world economic downfall...uitf was doing good

now it's on the downside...that's in my particular case

hopefully it can recover

[flashman]

before the world economic downfall...uitf was doing good

now it's on the downside...that's in my particular case

hopefully it can recover

 

so are you saying that it is not good to invest in UITFs right now? since i am a newbie, i want to start here in UITF before i start investing in the stock market. need your inputs. thanks.

[kb824]

so are you saying that it is not good to invest in UITFs right now? since i am a newbie, i want to start here in UITF before i start investing in the stock market. need your inputs. thanks.

 

 

you can visit the websites of different banks offering UITF, you can see for yourself how

their respective UITF are doing. check bdo and metrobank websites.

[Dr_PepPeR]

Oooppss i already found the NAVPU of BDO. darn me for not looking on their website. haha.

 

Thanks for dropping by anyway. There is a webpage by the UITF Council that lists the NAVPUs of the different UITFs.

[detective kyuu]

as of the moment hows the market?

 

i think uitfs are a bit like going to the casino...more of a gamble than investment...

[teban]

masters correct me if i am wrong based on my personal analysis and reading and learning from different materials is it right that this is already a good time to get into UITFs if you are looking into a three-year or more investment? It seems to me based on my understanding that the law of averages shall i say does apply to UITFs as well and so now prices are cheap but they will get up by 3 or more years time and then would eventually fall back down right?

 

I am thinking of putting less than 1/4 of my total savings into this one but is still considering the thought.

 

Though I would also like to ask how much usually does equity type UITFs (at the most likely scenario) potential return? Is it more than 10%?

[Dr_PepPeR]

as of the moment hows the market?

 

i think uitfs are a bit like going to the casino...more of a gamble than investment...

 

Gambling is putting money at risk on an uncertain outcome. Putting your money where you can expect a reasonable rate of return based on a thorough analysis is what differentiates investment from gambling. Market rate in general are still going sideways. How would that help you invest? UITFs are not for everyone, it depends on your risk appetite, investment horizon, objectives and familiarity with the investment outlet. There are also different kinds of UITFs out in the market. In general, your investment horizon should be at least a year, ideally 2-3 years. If you are out to make a quick killing, you might as well play the stock market. Just my worthless 2 cents.

[Dr_PepPeR]

masters correct me if i am wrong based on my personal analysis and reading and learning from different materials is it right that this is already a good time to get into UITFs if you are looking into a three-year or more investment? It seems to me based on my understanding that the law of averages shall i say does apply to UITFs as well and so now prices are cheap but they will get up by 3 or more years time and then would eventually fall back down right?

 

I am thinking of putting less than 1/4 of my total savings into this one but is still considering the thought.

 

Though I would also like to ask how much usually does equity type UITFs (at the most likely scenario) potential return? Is it more than 10%?

 

While I am no master, I believe you have got everything right. The rule of buy low sell high applies to UITFs. If you want to realize your gains right away, just redeem then put some back in again if you think there is potential for the NAVPU to go up, so you don't have to wait for 3 years. It is hard to discuss potential returns, since historicals are not a valid indication, except perhaps on the skill or luck of the investment manager at that time.

[flashman]

While I am no master, I believe you have got everything right. The rule of buy low sell high applies to UITFs. If you want to realize your gains right away, just redeem then put some back in again if you think there is potential for the NAVPU to go up, so you don't have to wait for 3 years. It is hard to discuss potential returns, since historicals are not a valid indication, except perhaps on the skill or luck of the investment manager at that time.

 

Hi Dr_PepPeR, thanks for the advice. your posts are very informative. Btw sir, what is the website of that UITF Council? As for the moment, I have searched the websites of PSE, BDO and Metrobank. And of the two, BDO offers the the lower investment requirement.