Author Topic: Mutual Fund or UITF? (Read 71450 times)

Dr.Richie · « **Reply #15 on:** Jul 03, 2007, 10:08 PM »

Quote from: richpulubi on Jul 02, 2007, 07:51 AM

You have to check. With Metrobank, they have no entrance fee for their UITF, but they have a hefty exit fee.

I spoke with the Bank Manager and the person in charge of the UITF's today. There is neither any sales load or back load IF you keep the investment within the minimum duration (usually 90 days).

baludoy · « **Reply #16 on:** Jul 24, 2007, 10:54 AM »

what happens if you exceed the holding period? will there be a penalty of some sort?

nailbiter · « **Reply #17 on:** Jul 24, 2007, 12:24 PM »

Baligtad. If you withdraw within the holding period, may fee. Afterwards, wala na.

austinjan · « **Reply #18 on:** Aug 04, 2007, 07:01 PM »

hi nailbiter! may tax ba pag nagredeem ka in any bank ng uitf? thnx...

Dr.Richie · « **Reply #19 on:** Aug 04, 2007, 07:51 PM »

Quote from: baludoy on Jul 24, 2007, 10:54 AM

what happens if you exceed the holding period? will there be a penalty of some sort?

Ooops sorry about that.... I chose the inappropriate words...

Tama si Nailbiter... What I meant was: There is neither any sales load or back load IF you keep the investment AT BPI BANK FOR the minimum duration (usually 90 days).

If you redeem within the minimum holding period, they will charge fees.

@austinjan

Sa BPI UITF wala na. I suspect whatever taxes have already been considered in the computation of the NAVPU

nailbiter · « **Reply #20 on:** Aug 04, 2007, 09:33 PM »

@austinjan, wala na. See here:
http://www.pinoymoneytalk.com/2006/11/30/taxation-of-uitf-income/

tlcara · « **Reply #21 on:** Aug 04, 2007, 10:39 PM »

guys, try this link kung gusto nyo pag aralan further ang UITF. Honestly ngayun ko pa lang din sya pag aralan. Good luck...

http://www.uitf.com.ph/

Dr.Richie · « **Reply #22 on:** Aug 19, 2007, 08:38 PM »

I have always wondered if it was better to have placed my money on Philequity Fund vs BPI equity UITF. Since BPI Equity was relatively new, the only "bearish trends" I could observe was what was happening now and what happend last march

I've tracked Philequity Fund & BPI equity UITF the past two months. Looking at their respective websites, so far, the BPI equity UITF is keeping itself above water a bit better than Phil equity.

In particular, I looked at the Peaks (July 6 and July 13 2007 ) and the lowest (March 6 and August 17 2007).

If you bought BPI and Philequity on July 6 and sold it on August 17, BPI (-19.6861%) vs Philequity (-20.2793%)

If you bought BPI and Philequity on July 13 and sold it on August 17, BPI (-20.0029%) vs Philequity (-21.1289%)

If you bought BPI and Philequity on March 6 and sold it on July 6, BPI (25.5889%) vs Philequity (24.6278%)

I guess that so far, the folks at BPI Equity Fund are just as good as their Philequity counterparts

Is this a sound opinion or did I miss something in the computations? Note, if we factor the sales loads, then BPI will really trash philequity.

martid18 · « **Reply #23 on:** Dec 30, 2007, 11:46 AM »

Hi nailbiter! just wana ask if you have a direct comparison between annual returns of sunlife prosperity funds vs any bank offering uitf who has outperformed the rest of the uitf market we have now? thanks in advance!

nailbiter · « **Reply #24 on:** Dec 30, 2007, 12:17 PM »

Hi martid18. You can view the NAV history of Sun Life Prosperity Funds on the ICAP website (www.icap.com.ph) and those of most UITFs on the TOAP website (www.uitf.com.ph). The UITF list on the TOAP website isn't complete, though. If you're seeking annual returns, you'll only have two years of data to compare, really, since UITFs have been offered by banks beginning in 2005 only. So complete calendar year data for UITFs to date would be for 2006 and 2007 alone.

foolcha · « **Reply #25 on:** Dec 30, 2007, 01:12 PM »

@ naibiter

just a question which do you think is better mutual fund companies (Mutual funds) or trust department of a bank (UITF)?

lailani · « **Reply #26 on:** Dec 30, 2007, 11:35 PM »

^also curious on that.
i haven't tried any mutual fund companies, i'm still considering...
pero i already have uitf accounts.

foolcha · « **Reply #27 on:** Dec 31, 2007, 01:19 AM »

@ lailani

actually sabi nga ng ibang mga expert sa field ng investments e mas magaling daw ang mga taga life and non-life insurance pag dating sa paginvest ng pera. Question is sino ba talaga?

a. Mutual funds (Investment Companies)
b. UITF (Unit Investment Trust Funds)
c. Life Insurance Companies (VUL)

nailbiter · « **Reply #28 on:** Dec 31, 2007, 09:50 AM »

Mutual funds are easier to evaluate, for me. Since they've been around longer compared to UITFs, you get a better gauge of long-term performance. Which is what you should be after when investing in a mutual fund.

UITFs have very impressive numbers, if you look at their performance tables. But I don't advocate chasing returns when looking at an investment fund. There are a couple of things that come to mind as to why UITFs may be doing better. The funds being relatively new, they're smaller, hence may be more liquid. Also, unlike mutual funds, a UITF's exposure in individual securities is not limited according to the implementing rules of the Investment Company Act. So their fund managers may have more flexibility in designing the portfolio. However, it is also this lack of regulation which worries me as I don't know what implications this may have down the line. Isa pa pala, UITFs don't pay out dividends. Siguro they're reinvested and accounted for into the NAVPU. As opposed to mutual funds that distribute dividends by reinvesting them as added shares.

I also like how a mutual fund's prospectus and information on their fund managers is easily made available. When I inquired at BDO and iBank regarding their UITFs, all I got was a table of their daily NAVPS, which I could not even have a copy of, and flyers. I was unaware then that UITFs should have a Declaration of Trust. When I was asking for a prospectus, the Declaration of Trust was not offered to me.

One thing about UITFs is the lack of sales load. Siyempre, who wants added charges? Here's hoping mutual funds will follow suit.

Nakakakaba rin sa UITFs yung sell-off that happened in May 2006. Since UITFs are offered by banks, they're more easily available. We do get questions here on the forum from investors who bought UITFs but don't know very much about the product. So what about all those other investors who don't have access to these channels? UITFs are also made more attractive because there's no sales load. From other forums, I've been reading about UITF speculators who keep moving their funds around in the short-term, taking advantage of the absence of charges. This practice and the possibility of another panic sell on a market dip makes UITFs much more volatile, IMO.

As for single-pay VULs (let's exclude regular-pay VULs since these are not comparable to MFs and UITFs), like UITFs, these are relatively new products. They too seem to be doing better return-wise, for now. From previous computations I made for Sun Flexilink VULs and Sun Life Prosperity Funds, Flexilink investment funds actually did better even net of all charges. VULs carry more charges than mutual funds and UITFs because it's an insurance product. I haven't updated those computations lately, though, so I don't know if this is still accurate. Needless to say, past performance is not a guarantee of future performance.

foolcha, I'd like to throw the same question back to you. In your opinion, which is better, MFs or UITFs?

OT: Pardon my ignorance, what does 'A' in ARFP stand for?

foolcha · « **Reply #29 on:** Jan 01, 2008, 09:22 PM »

nailbiter

My answer would be the same as yours. I have been reading your post and I find your advice very good.

"A" just stands for Affiliate, once you have not yet received your designation from the RFPI (Registered Financial Planners Institute) but already finished the other RFP Requirements you are considered ARFP.