A Primer on UITF




One of the main problem I heard about investing in Mutual Fund is the availability of the Investment Company's office in some areas like in some rural areas or provinces outside the metropolis where satellite office are far. Applying to open a Mutual fund  can be done through postal mail but this is troublesome. As an alternative, investing in UITF is the best solution to this problem.
Invest now for a brighter future!

UITF or Unit Investment Trust Fund is like mutual fund (see my post about "Mutual Fund Basics") wherein money from individual investors are pooled and invested in various instruments like stocks, bonds, money markets and other securities. The main difference is while mutual funds are managed by the designated fund manager of the Investment Company, UITFs are handled by the Trust Officers of the Bank.  Both are open-ended funds which means you can add or claim invested money at any time subject to guidelines. Just like the mutual fund, UITF can be classified into 4 main type namely: Equity, Balanced, Bond and Money Market Fund. However, do take note that each fund can be unique depending on the fund's investment objectives.
Please read the post "Kinds of Mutual Funds in the Philippines" to be able to understand each fund and the related risk involve.  Applying to UITF can be done in any branches of the banks offering the UITF thus solving the main issue I mentioned in my introduction.




The following banks in the Philippines offer UITF:
1. Allied Bank
2. Asia Trust Bank
3. Bank of Commerce
4. BPI or Bank of the Philippine Islands
5. BDO Unibank, Inc.
6. China Banking Corp.
7. EastWest Banking Corp
8. Land Bank of the Philippines
9. Metropolitan Bank & Trust Co.
10. Philippine Bank of Communications
11. Philippine National Bank (PNB)
12. RCBC
13. Security Bank
14. Union Bank

Depending on institution, initial investment can range from P10,000 to P100,000. Additional contribution range from P1,000 to P100,000. 


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