Showing posts with label How to invest in UITF?. Show all posts
Showing posts with label How to invest in UITF?. Show all posts

How to invest in UITF?


Aside from stocks UITF can also be a good investment. It is an  open-ended type of invest, which means an investor can buy and sell shares directly from the fund itself, not from other investors or secondary market.

You can start investing in UITF's for P10,000; opening an account can be done not only in the bank branch but even online. To be able to start investing you must have a deposit with them and nominate that account as your UITF account settlement. Your initial investment will be taken from your deposit account to buy a unit fund on its current Net Asset Per Unit (NAVPU), on the same manner, any redemption from your UITF account will be credited back to your deposit account.

These are the typical requirements in investing in UITF.

1. Savings account with the bank you want to open a UITF investment.
2. Signature card provided by the bank.
3. Accomplish a client suitability test that will be provided by the bank.
4. Sign an Omnibus Participating Trust Agreement
6. At least two valid IDs.

The good thing about UITF is it's diversified. Just like mutual funds it is managed by a fund manager, furthermore, UITFs are not limited the company stocks. For example a UITF could be a Government Bond Fund, with varied government Fixed Rate Treasury Note.

Example 1.

















Some are mixed with stocks, T-bills and Time Deposits.

Example 2.



















The type of UITF you're going to buy will depend on your risk tolerance and/or what type of investment you want.


Here's an actual return of investment from Metrobank.


























I hope this article was able help you with your financial goals.
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