Author Topic: Mutual Fund or UITF? (Read 71289 times)

GoodSteward · « **Reply #285 on:** Mar 23, 2011, 03:10 PM »

Mutual fund mostly has sales load, so not net yun "navpu" nila unlike uitf, navpu is net

yano125 · « **Reply #286 on:** Mar 23, 2011, 03:54 PM »

Quote from: newcomer on Mar 23, 2011, 12:30 AM

Hi,

Is it advisable to invest in mutual funds regularly but in small amounts (say 5 or 10k monthly)? Or would that result to greater fees charged? Or what that be better for UITFS? Sorry not familiar with MFs/UITFs yet just starting to read up. Just wanted to be on the safe side and practice cost averaging, since I don't think I'll be able to actively monitor NAVPS for timing my investments. Thanks a lot!

IMHO , That is probably the smartest way to invest. Slow but sure. The benefit of saving or investing regularly in a MF is that it allows you to capture the Ups and downs in the market which somehow allows you a better spread in the Unit costs. I have clients who see the benefits of investing Php 10,000 a month in MF.

If you are investing in Mutual Funds for the Long Term, Then you should select The Back-end Feature of the Sales Load. if you do not withdraw from your MF in the first 5 years, you will not be charged any sales load. if you selected back-end for your sales load and withdrew from your MF in less than 5 years, you will be charged a sales load as you exit.

If you selected Front-End for your sales load, then your account will be charged every time you put in some money.

Ask your MF Rep about this. If they ticked the front end sales load without asking you, then they want to get their commission from the investment at once.

I do not encourage short term investment in MF unless the investor is knowleadgeable about the risks involved. Bottomline, I encourage MF Investors to NOTE and select the back-end feature of the Sales load to be able to save on the cost of the Sales Load incase they are in this for more than 5 years.

richpulubi · « **Reply #287 on:** Mar 23, 2011, 04:09 PM »

You can check that new system of BDO, wherein you can invest in their UITF's for as low as P1000 a month. Also, there is no sales load for UITF's, unlike MF's

ahock · « **Reply #288 on:** Mar 23, 2011, 07:34 PM »

oo nga rich kaso need ng appearance kaya pano na kami mga OFW?

ryknox · « **Reply #289 on:** Mar 23, 2011, 07:51 PM »

yeah, that's a good point. . for example with me I am only allowed to go on vacation every 4 months for 2 weeks only, sometimes 6 months (depending if I am badly needed on-site) . what can you advice with my kind of situation?. .or what type of MF or UITF's that is suitable for me?

yano125 · « **Reply #290 on:** Mar 26, 2011, 08:47 AM »

Quote from: ryknox on Mar 23, 2011, 07:51 PM

yeah, that's a good point. . for example with me I am only allowed to go on vacation every 4 months for 2 weeks only, sometimes 6 months (depending if I am badly needed on-site) . what can you advice with my kind of situation?. .or what type of MF or UITF's that is suitable for me?

If you are a long term investor: I would still recommend investing in MF.
ZERO Sales Load pag walang withdrawal in the first 4 years.
Choose Option B pag Sunlife MF kinuha mo

What is wrong with paying for Sales Load sa MF?
   You want to earn? so does your MF Rep by soliciting your investment and giving you sound financial advice. Does he not deserve some financial renumeration?

   But you can have ZERO Sales Load pag walang withdrawal in 4 years. Pag may withdrawal in 4 years, a little higher nga lang and redemption fees. So pwede pa ring mag withdraw.

UITF wala ngang Sales Load, check mo naman ang Exit fees nila.

@ryknox
   kung madals ka overseas. walang problem yan sa MF. Talk to your MF Rep. You can deposit in any of the 14 Banks (where SLAMC has an account. Check with your MF Rep ) everytime you want to add money in your investment. Pwedeng ikaw mag deposit or i-pa deposit mo kung kanino. Just make sure you send a scan or fax copy of the deposit slip transaction to your MF Rep who will then attach other requirements for submission to SLAMC for you.

Find and select an MF Rep you can:
* count on
* a phone call, an SMS or an email away
* easy to contact
* will find time to explain and answer your questions
* willing to assist you in fund transactions even in your absence.

You can start an MF Investment for as LOW as Php 5000.
Subsequent investments will be at a MINIMUM of Php1000 each.

Start Investing in Mutual FUNDS NOW.

GoodSteward · « **Reply #291 on:** Mar 26, 2011, 09:27 AM »

Quote from: yano125 on Mar 26, 2011, 08:47 AM

UITF wala ngang Sales Load, check mo naman ang Exit fees nila.

Ya, no exit fees as far as my uitfs are concerned, and holding period is from none to 3 months max. And i believe other uitfs are also like that....

ryknox · « **Reply #292 on:** Mar 26, 2011, 02:59 PM »

Quote from: yano125 on Mar 26, 2011, 08:47 AM

@ryknox
kung madals ka overseas. walang problem yan sa MF. Talk to your MF Rep. You can deposit in any of the 14 Banks (where SLAMC has an account. Check with your MF Rep ) everytime you want to add money in your investment. Pwedeng ikaw mag deposit or i-pa deposit mo kung kanino. Just make sure you send a scan or fax copy of the deposit slip transaction to your MF Rep who will then attach other requirements for submission to SLAMC for you.

Find and select an MF Rep you can:
* count on
* a phone call, an SMS or an email away
* easy to contact
* will find time to explain and answer your questions
* willing to assist you in fund transactions even in your absence.

You can start an MF Investment for as LOW as Php 5000.
Subsequent investments will be at a MINIMUM of Php1000 each.

Start Investing in Mutual FUNDS NOW.

Thanks' yano125

ryknox · « **Reply #293 on:** Apr 05, 2011, 04:01 PM »

Quote from: GoodSteward on Mar 26, 2011, 09:27 AM

Ya, no exit fees as far as my uitfs are concerned, and holding period is from none to 3 months max. And i believe other uitfs are also like that....

Thanks' GoodSteward for your inputs. Salamat

jcmpix · « **Reply #294 on:** Apr 12, 2011, 07:23 PM »

I think UITFs have the edge against mutual funds because of the lower fees. A short comparison I wrote: http://towardfinancialfreedom.blogspot.com/2011/04/uitfs-vs-mutual-funds.html

DonT · « **Reply #295 on:** Apr 12, 2011, 07:37 PM »

^That was a good comparison. Though not 100% accurate.

But for me..bottom line is the following:
1. Which one earns more? consistently?
2. Which one is nearer my place of work?
3. Which one has a better rep or agent?

The answer above will get my vote.

jcmpix · « **Reply #296 on:** Apr 12, 2011, 07:56 PM »

Can you please post the inaccuracies? It would be a big help, I wouldn't want to be spreading misinformation.

As for returns, I believe they are largely a matter of luck. Of course that's only my opinion.

DonT · « **Reply #297 on:** Apr 12, 2011, 08:07 PM »

^ Item 8 - UITF min. holding period is as short as 0 days.

jcmpix · « **Reply #298 on:** Apr 12, 2011, 08:34 PM »

Missed that on the UITF site. Thanks!

mxherr5 · « **Reply #299 on:** Apr 13, 2011, 06:33 AM »

Quote from: DonT on Apr 12, 2011, 07:37 PM

^That was a good comparison. Though not 100% accurate.

But for me..bottom line is the following:
1. Which one earns more? consistently?
2. Which one is nearer my place of work?
3. Which one has a better rep or agent?

The answer above will get my vote.

Good list DonT but I'm very allergic
to high costs so
1.) No sales load
2.) Consistent performance
3.) Low management/trust fee
4.) Affordable minimums / wherein I would be able
to cost average

The "costs" is more important for me than
convenience hehe