by - Wednesday, September 28, 2016

One thing that a Financial Advisor should do is to educate clients about types of investments that are available in the market. One of which is the UITF.

A Unit Investment Trust Fund (UITF) 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. Each UITF product is governed by a Declaration of Trust (or Plan Rules) which contains the investment objectives of the UITF as well as the mechanics for investing, operating and administering the fund.

Most UITFs are considered medium to long term investments. Clients considering to invest in UITFs must have the financial resources to stay invested in them for a reasonable period of time in order to maximize earnings potentials. If the funds to be invested will be needed by the client in the immediate future, the UITFs may not be a suitable investment vehicle for such client. - SOURCE:

In tagalog, ang UITF ay kagaya din ng mutual fund na pinagsama samang pera ng mga investors at mina manage ng fund managers. Ito ay karaniwang ino-offer ng mga bangko. Maaari kang mag invest sa UITF ng P10,000 or P1,000 thru EIP or easy investment plan.

In a UITF, the value of each participating unit or Net Asset Value per Unit (NAVPU) is a reflection of the current market prices of the instruments that make up the UITF.

Pwedeng mag invest sa UITF ang sinuman basta nasa legal age. Any person, association, corporation, entity or firm who/which has the legal capacity to contract or establish a trust may invest in a UITF product. It works basically like mutual funds.

One important thing to remember though when investing in UITF is that there will be fees, documentary stamps, taxes and specific bank terms and conditions that we have to consider.

I have invested in BDO's Equity Fund. So far, the fund is performing quite well. Daily NAVpu is available on their website.

Always remember: It's not about how much money you make, It's how you save it!

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