Mutual Funds VS UITF

[makie29]

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In addition to what I have said, also consider the reason/goal for putting money in UITFs/mutual funds.

Stocks/Equity Funds: This kind of fund is mainly for capital appreciation and is ideal for those who have high risk tolerance. The stock market is very volatile (on a short term outlook). In order to mitigate such risk, you must have an investment time frame of at least 5 years. Basically, in equity funds, the longer the time horizon, the better the potential gains would be. Average rate of return is 10% to 15% per year.

Fixed Income Funds: This kind of fund is mainly for capital preservation and conservative growth. It's far less volatile than equity funds but its potential returns is lesser (risk is lesser as well). Time frame for fixed income funds is normally 2 years to 5 years or even more. Average rate of return is around 4% to 8% per year.

Balanced Funds: Ideally, it is a 50-50 split (50% stocks and 50% fixed income) but in reality, it normally mimics the better performing fund. At a first glance it might look as the best option since it has an exposure in both but by looking at their prospectus, balanced funds has limited investments in the stock market compared to equity funds which, if the market is doing quite well, hinders it from growing to its full potential. Balanced funds are good for people who are less risk tolerant but at the same time is looking for a decent rate of return. Average rate of return is around 8% to 12% per year.

**Average rate of return is not guaranteed and is based on previous/historic data.

[cebu.opportunities]

mam,

If you are to review the attached image " My Transactions" palihug ko tan-aw anah naka red which says " Search dates cannot be greater than ninety days (90 days) from the current date. " that precisely is the reason why dili ko maka extract sa statement starting from the first debit sometime between April or May 30,2013.
As to how I learned nga there was an amount debited from those mentioned months kay I was able to view it man 5 months ago and I am regularly monitoring my account via online banking.
My only mistake is that I didn't compiled it in an excel sheet to keep a full track of the subject UITF transactions.

Another issue is that, although the UITF debit transactions were successful as reflected in my SOA however when I try to generate a report for UITF alone ( see attached image TRUST ACCOUNT)
Pls. note again on the message highlighted in red it says " You don't have an existing Trust UITF account!"
Mao neh nakalibog nako.
I'm not sure whether it is some banking 101 language/terminology kinda thing that I'm not familiar of, hu, hu, hu.

BTW, I've applied for my UITF subscription at my BOA by visiting them in person as they don't have Investments Facilities available online unlike BPI and PNB.

RE: " You don't have an existing Trust UITF account!"

ma'am, murag in order ma view siya online, you need to enroll your UITF details per COP pa. not sure though. pero naka-remember lang ko bout time deposits. need pmn i-enroll kada certificate ayha pa mo reflect online and once enrolled, di ma delete bisan gi redeem na.

Probably, same goes to UITFs. kailangan pa i-enroll. but then, imo concern ky la ky nadawat nga COP which is ideally kuhaon over-the-counter but maybe pwede ra mo request nga ipa-mail or "email" perhaps sa imo. if you'll be able to get ur COP, other concerns will be addressed na except for those di makita sa COP and pag-redeem. down pmn sad ang market (good time to keep on investing), basi moabot ra ang time maka-visit nasad ka nila in person. i-process nlng tanan as well as authorized representative (nga imo gi trust if there's any) to do transactions in ur behalf. if redemption gani, ipa-indicate nlng nga i-deposit sa imo account, not by cash... pra sigurado likay sa tintal, hehe

[miramax]

RE: " You don't have an existing Trust UITF account!"

ma'am, murag in order ma view siya online, you need to enroll your UITF details per COP pa. not sure though. pero naka-remember lang ko bout time deposits. need pmn i-enroll kada certificate ayha pa mo reflect online and once enrolled, di ma delete bisan gi redeem na.

Probably, same goes to UITFs. kailangan pa i-enroll. but then, imo concern ky la ky nadawat nga COP which is ideally kuhaon over-the-counter but maybe pwede ra mo request nga ipa-mail or "email" perhaps sa imo. if you'll be able to get ur COP, other concerns will be addressed na except for those di makita sa COP and pag-redeem. down pmn sad ang market (good time to keep on investing), basi moabot ra ang time maka-visit nasad ka nila in person. i-process nlng tanan as well as authorized representative (nga imo gi trust if there's any) to do transactions in ur behalf. if redemption gani, ipa-indicate nlng nga i-deposit sa imo account, not by cash... pra sigurado likay sa tintal, hehe

Tankue, mam for these infos. Well received

[KlaytoN]

^ naay kuwang nga info. What are his/her existing investments (tangible and paper) (and protection of wealth, health, life) and their corresponding terms?

basi, pwede pa ipa-stretch ang pag-diversify.

lahi2x man og style sad sa pag-invest, nahan siya'g one-time or mag peso-cost averaging?

if you invest everything/the whole percentage of the allocated fund all at once, sayang pud in mo go downward pa after FOMC meeting. (sako rpud na nga side, hehe... excited sa i-share sa mga bigatin nga investors/traders )

like kana affected and "not affected" sa stock market...
- Fixed income Securities, Bonds, Treasury Bills (conservative)
- directly and indirectly affected sa stock market (UITF, MF, ETF, stock market investing/trading) (moderate to high risk)
- Coop
- other sources (partnerships, financing, etc)
- if apil pa real estate properties, dako man kaon sa kwarta and possible dugay pa ma liquid

Thanks for your reply sir. Mao ni ang existing investments in which there is already existing funds assigned to keep such investments going..

1. Non-bank financial institution- di lang ko mag mention unsa ni but this forms the "bread n butter"

2. Real Estate
a. Commercial/Lessor- also forms d bread n butter
b. Properties classified as IDLE- mostly residential lots, provincial/agri lands, and some idle commercial properties.

3. Securities, Bonds, T-bills- gamay nalang nabilin coz most of it either tapos na ang term or gi terminate na and went to the "common funds" mentioned above.

4. Personal- nag start ug invest on different schemes in the mid 90's. Even ventured into "MLM" even before such moniker came to being.. I'm not sure if you guys can still remember High Desert, The Peak, Forever Living, Power Homes, Amway, Cosway, Symmetry, E.Excel, and many others. Gisudlan na niya not as a mere agent but as a Stockist. Dali ra man gud ma convince kay pirme duolon sa mga kaila nga networkers.. Later on nka realize na wala gyud nabawi iyang kwarta didto and accepted the fact dili gyud diay sya networker and has no time selling door-to-door. Right now allergic na kaayo whenever networkers muduol niya, outright reject dayon.. Also fell "victim" to the downfall of the insurance/pre need investments..
a. Educ Plan for kids- had PEP and CAP, hangtud karon wala pa nabawi iya kwarta so losses na..
b. Caritas (HMO)- has at least 4 plans that already matured and is earning 10% per annum based on the policy contract, but still decided to terminate all plans recently due to fear na basin kalit lang ma-close ang company.
c. Insurance Pension- has at least 2 active/matured plans and already receiving a 5-digit monthly pension..
d. SSS- soon to retire less than 5 years from now, expected to receive 9k monthly pension.
e. Prudentialife Plans- had at least 12 plans matured since 2010 and had started to receive the promised return, unfortunately in 2012 such company suddenly came under receivership with IC. Mga around 30% lang iya nabawi, and wala pa sure pila iya madawat after the liquidation..

Sa style pag invest, more inclined to peo cost averaging but that remains to be seen.. Siguro sir hulaton nalang unsay resulta sa fed meeting?

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Bro, those 3 options you have provided will give you 3x or more return than a time deposit but time horizon is very important in investing. 30 days would be very short(either in a good or bad market). 3 years would be fair enough if you will do the money cost averaging.

Yes I agree. Kanang 30 days to 3 years mag depende na sa type of investment. Naka mention ko 30 days kay mao naman gud trend sa UITF.

[KlaytoN]

@KlaytoN: Here are some suggestions:

[1] Avoid the balanced funds. It's just a mix of equity and fixed income funds.

[2] Assuming that your investment horizon is three years max, invest more in fixed income funds. For example, 60% to 70% in fixed income and 30% to 40% in equities. As a rule of thumb, the shorter the investment horizon, the lesser the exposure in stocks should be.

[3] In your UITF options, I suggest you also add Security Bank. They're one of the best when it comes to UITFs.

[4] I'm not so sure about UITFs but in mutual funds, you can shift funds (ex. equity to fixed income and vice versa) for free (up to 4 times in a year). Such feature is very helpful during market swings.

I've got a question though:


Are you planning to open an equity, balanced and fixed income funds in each of those banks and mutual fund companies?

Thanks for the suggestion sir. Yes I agree with Security Bank naa koy nakita nga portfolio nila nakalimot ko unsa pero I saw the graph sige ra gyud saka over the years, very slowly but surely..

Shifting funds among different portfolios in UITF is possible and you can even DIY online, provided naa gyud holding time at least 30 days or be charged with early fees.

Not really the 3 general porfolios in each of the 3 banks/MF comp mentioned above.. Let's say sa UITF, at least 3 lang ka accounts depende na dayon asa nga bank based on performance and advise from you guys.. The same goes with MF.

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For me lang Bro ha, wala ni ma-diversify imong wawarts .... hehe

gets nako

Thanks for the comment. I got what you mean.. actually there are already funds earmarked for other investments and even existing investments.

[newrig]

murag need sad ni nko dah dako kaayo ni tabang

[cebu.opportunities]

Thanks for your reply sir. Mao ni ang existing investments in which there is already existing funds assigned to keep such investments going..

actually, naghuwat rpud ko sa ikatambag sa mga financial literate. In short, ga samok2x rako, hehe.

diversified nmn sad pero nanga mature nlng and ny idle investments.

1. Non-bank financial institution- di lang ko mag mention unsa ni but this forms the "bread n butter"

no problem. di man sad obliged to do so.

2. Real Estate
a. Commercial/Lessor- also forms d bread n butter
b. Properties classified as IDLE- mostly residential lots, provincial/agri lands, and some idle commercial properties.

sayang ang idle properties. basi, pwede pa magamit while idle pa siya. daghan pamaagi pero lisod and kapoy lang.

3. Securities, Bonds, T-bills- gamay nalang nabilin coz most of it either tapos na ang term or gi terminate na and went to the "common funds" mentioned above.

Sa style pag invest, more inclined to peo cost averaging but that remains to be seen.. Siguro sir hulaton nalang unsay resulta sa fed meeting?

conservative ang earnings ani. I find these investments dugay ra kayo ang maturity though pwede nimo i-sell pero ang prob if makakita ba dayon ka. ang interests pud ky labaw lang siya gamay sa inflation rate. ma consider as guaranteed and secure hinuon ka ani.

pero if conservative siya nga type of tao, basi makuratan siya sa ka volatile sa investments affected by the stock market. returns are not guaranteed. kung short term lang, possible next month, negative pa gani ang gi-invest but naa man gyud ky option to hold longer until you're satisfied with the gains. UITFs, for example, ky ny 30 days holding period upto 6 months holding period depende if asa gi-invest pero it doesn't mean mo gain na dayon siya after sa holding period ky fluctuating man. MFs and UITFs are designed for long term. stock trading, needs research, skills, etc... stock investing ky similar sa MFs and UITFs nga works well when long term and mag peso cost averaging. at least, you'll get the average returns. ubos na ang prices ron so it's good to start accumulating. mag hinay2x og invest while down pa. kato bout sa fed meeting, two way man siya depending sa result. pero either ways, okay rmn gihapon mo invest. (pasensiya sa mga traders, angal lang, hehe. bitaw, pwede man mangita og good positions by buying low pero di ta kahibaw if asa man jud ni kutob ang low)

4. Personal- nag start ug invest on different schemes in the mid 90's. Even ventured into "MLM" even before such moniker came to being.. I'm not sure if you guys can still remember High Desert, The Peak, Forever Living, Power Homes, Amway, Cosway, Symmetry, E.Excel, and many others. Gisudlan na niya not as a mere agent but as a Stockist. Dali ra man gud ma convince kay pirme duolon sa mga kaila nga networkers.. Later on nka realize na wala gyud nabawi iyang kwarta didto and accepted the fact dili gyud diay sya networker and has no time selling door-to-door. Right now allergic na kaayo whenever networkers muduol niya, outright reject dayon.. Also fell "victim" to the downfall of the insurance/pre need investments..

Same here. di pud ko networker. it needs a lot of hard work and patience and naay certain ways sa uban nga murag against pud sa imong conscience. being a stockist is dako2x nasad og discount ana pero murag with office ang mo fit sa iyaha pero sa kadaghan nsad nasuwayan and la ni work, likay nlng gyud.

a. Educ Plan for kids- had PEP and CAP, hangtud karon wala pa nabawi iya kwarta so losses na..
b. Caritas (HMO)- has at least 4 plans that already matured and is earning 10% per annum based on the policy contract, but still decided to terminate all plans recently due to fear na basin kalit lang ma-close ang company.
c. Insurance Pension- has at least 2 active/matured plans and already receiving a 5-digit monthly pension..
d. SSS- soon to retire less than 5 years from now, expected to receive 9k monthly pension.
e. Prudentialife Plans- had at least 12 plans matured since 2010 and had started to receive the promised return, unfortunately in 2012 such company suddenly came under receivership with IC. Mga around 30% lang iya nabawi, and wala pa sure pila iya madawat after the liquidation..

likewise, la pud nako nkuha ako CAP (aw, padung diay unta sako papa) pero pre-need ni siya and lahi to ang pamaagi before. karon, regulated na ang pre-need sa IC and ang ma claim nimo nga amount would now depend on the "premiums" paid so mas realistic na siya compared before.

base sa info above, life insurance and health insurance ky di na kayo ma maximize if mag-add pa ky expensive na. pero, nigamit ka'g word nga mature, limited diay ang term. walay whole life didto sir? pero with his liquid funds, okay ra di na mag add, hehe. (IMO)

b. Caritas Health Shield
- gi terminate na ni sir? sayanga oi. what if di ma close ang company and needed ila services? gamit sad ni to lower the expenses down. pero di pud hinuon ko familiar sa plan, lifetime ba ma covered? basta, naa sila money back after a specified standard term nga di magamit and I assume mao na imo gi mean nga ni mature but don't know if pati ang main purpose ky di nasad magamit if mo mature na.

[miramax]

For subscribers on this thread; lemme share u the replies that I got from my bank on IUTF concerns:

"1. To verify the type of UITF you applied for, we sugget that your coordinate with your branch of account (BOA) as they are in a better position to verify this information.

2. Please be advised that UITFs have no maturity date. You can redeem units anytime, subject to early redemption fee if redeemed within the minimum holding period. The early redemption fee is a cost that the investor has to absorb on account of his redemption from the fund during the minimum holding period. Beyond the holding period, your redemptions will not be subject to an early redemption fee.

Furthermore, there is no end date for your EIP contributions. Your participation/contribution shall continue until such time that you give us a written notice of your intention to unsubscribe your participation in the EIP"

[Lingaw-lingaw_sa_payag]

Hinaya ron ui. Hehe

[makie29]

Hinaya ron ui. Hehe

Should be good to add more kay wa pa kaayo nilihok ang price.