READER’s QUESTION: “Which is better Savings Account, Mutual Fund or UITF?”August 20, 2014
Yesterday I received this reader question through my contact form. To the letter sender, that you first and foremost for the time in reading my blog! And congratulations for this eagerness towards financial freedom! I am glad that SavingsPinay is helping you in a way.
To answer your question let me first clarify an important note.
- Remember that Mutual Fund is NOT offered by banks but rather offered by trusted financial institutions like FAMI and SunLife. To enroll you may need 5,000pesos but for the monthly investment you may pay as low as 1,000pesos a month.
- Savings Account are the easiest type of investment for almost ALL BANKS here in the Philippines offer it. Also opening a Savings Account may require as low as 250pesos only to open.
- UITF on the other hand is an underground type of investment similar to mutual funds BUT is offered by banks. You may read more of this through my future post where I will elaborate the differences between UITF and Mutual Fund.
As to which is better, I personally believe that it depends on what type of investor are you. Do you want to invest on a short term or long term period? Are you risky when it comes to your investments? Do you favor high investment, high return but long -time waiting or you needed to see and feel the yields in an instant?!
There are a lot of Investments that will soon be talked about here in this blog but I hope the above information helps you to assess your investor’s risk factor. Take time in choosing what investment vehicle you will ride and always inquire with those who have experience and expertise.
As of now, my main tip is for you to SAVE, SAVE and SAVE! That way you will lessen the risk of your investing.
Have a good day dear reader!
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Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at www.izzaglinofull.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at firstname.lastname@example.org