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What is UITF Investment?

August 18, 2014
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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Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.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 izza@savingspinay.ph

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