Why I Invest in UITF?

1332-us-government-should-trust-the-free-market-for-green-energy-investmentAll of us in the company will receive an STI. 🙂 woot~woot! And I’m excited to receive it! Not because I have something in mind to buy, but I will invest it! I will invest part of it for the future of the next generation, through Every Nation Building at the Fort and part of it in stock market and UITF.

What is UITF? Why UITF?When I learned about investing and how it works, the first investment tool that I tried is UITF (Unit Investment Trust Fund). Investopedia defines UITF as an investment company that offers a fixed, unmanaged portfolio, generally of stocks and bonds, as redeemable “units” to investors for a specific period of time. It is designed to provide capital appreciation and/or dividend income.

I highly recommend as soon as you start working, “save and invest“. You don’t have to wait for you to earn 6-digits to start savings. Start with small amount, how about P1,000/monthly? Remember? Great things start from small beginnings. In Philippines, you only need P10,000 to start investing.   To know more about UITF, go to www.uitf.ph. The following banks offers various UITF products that will suite your needs and profile. You can inquire directly to your preferred bank, if you have existing payroll bank accounts, you can get your UITF from the same bank.

UITF Banks

In almost two years of regular investing in BDO Easy Investment Plan, Equity Fund, since April 2013 till December 2014, my investment earns 15% ROI. Not bad right?

This type of investment – BDO Equity Fund, invest 96% on equity securities and 4% in short-term deposits. Majority of these equity securities are: ALI, SM, TEL, URC, MEG, BDO, AC, SMPH, EDC & JFC. Want to know more? Click here to know more how BDO EIP works and here for key information and disclosure statement as of February 2015.

Last year, I also started to diversify my extra fund. I choose another equity fund from Security Bank – SB Peso Equity Fund. Why? Because SECB has strong performance in 2014 ROI of 48.11% and 91.44% in past 3 years. SB Peso Equity Fund majority of stock securities are: URC, Nickel Asia, Max’s, Bloomberry Resorts, Semirara, Metrobank, Premium Leisure Corp, DMCI, DNL & Aboitiz Power. To see SB Peso Fund disclosure statement as of January 2015, click here.

Why I diversify? I do, because it’s the number 1 rule in investment. Diversify your portfolio, do not put your eggs in one basket!

Why I choose Security Bank? Because I see the difference mix in portfolio compare to BDO, both banks invest in blue chips company, but has different strategy. SECB is more aggressive as portfolio is a mix of consumer, hotels, mining, banks and power.

You want to learn more? Check out this article “How To Grow Your P10K in Investments?”  from iMoney.ph Learning Center.

Have you invested in UITF? If yes, please share your experience. If not, are you willing to start investing now? Which UITF product you’ll choose?

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G. Allen

One thought on “Why I Invest in UITF?

  1. Pingback: 10 Money Mistakes I Made in My 20’s | My Journey, His Glory...

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