UITF stands for Unit Investment Trust Fund. It is another
form of investment in the Philippine market that shows great potential
nowadays.
UITF, unlike Mutual Fund that is handled by trusted financial
company, is handled and made possible by banks. It is an open-ended pooled trust fund denominated in pesos or
any acceptable currency, which is operated and administered by a trust entity
and made available by participation. - See more at: http://www.uitf.com.ph/faqs.php#gsc.tab=0
Open-ended pooled means that a client is allowed to invest or
redeem their investment at any time subject to the declared information in the
bank’s Declaration of Trust.
The idea of UITF investment is that Funds from various
clients with similar investment objectives are pooled together into one fund,
which the trustee invests in various types of securities with the aim of
maximizing returns within reasonable risk levels. - See more at:
http://www.uitf.com.ph/faqs.php#gsc.tab=0
In UITF, each share is called a Unit. The minimum investment
here is 10,000pesos a lot pricier than FAMI Mutual Fund and COL Start-up. The
price of each unit you own differs per day.
Example: Say the value of 1000 shares you own in your UITF in 2010 is 150pesos per share. By the end of 2014, your 1000 shares values for 300pesos per share. This means your cash flow if you didn’t sell your shares by 2013 will be 300,000pesos NOW. That’s a lot of gain for just four years of investment.
Another good thing about UITF is that your money is managed
by your bank. You can apply for this one and yes there’s additional fee for the
bank but no worries it is too little compared to the yields you’ll earn
afterwards. Standard fee ranges from 0.5% to 2%. Example of banks that offers
UITF Investments are BDO, BPI, EastWest Bank, Security Bank Corporation and so
much more.
Also note that UITF investments are regulated by Bangko
Sentral ng Pilipinas so you’ll sure that your money is being taken care of.
In accordance to the bank where you invested, you can easily
monitor your UITF investment online. BDO and BPI offers online portal for this
one. Also in accordance to the chosen bank, there are different
types of UITF investment you can choose from.
As part of your Diversification, why not try UITF? It’s
higher pre-investment price but seeing the performance of the investment
portfolio you’ll surely smile at the end of the day J
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