PMT Forum
Do you want to make money today? :)

How to Invest in UITF (Unit Investment Trust Funds) - Part 2

iam · 768 · 234961

suzaku

  • Senior Member
  • **
    • Posts: 59
    • Likes Received: +0/-0
^I'm not sure about other uitfs but with BDO uitfs, there are no partial withdrawals/redemptions. Pag nag-redeem ka, buo talaga, di gaya sa mutual funds.


freefront

  • VIP 4500
  • *****
    • Posts: 4,888
    • Likes Received: +9/-0
I didn't know about the partial withdrawal bit. One thing I know though, is that the people from the bank selling UITF don't have the training that financial advisors have. They sort of act like tellers. They can't just chat and elaborate thoroughly. I did try doing that pero di ako bumilib sa presentation nila, so di ako bili. And when you get your UITF, there is no aftersales support. I have a neighbor who no longer banks at BDO because the manager didn't inform her when things started to decline. They were friends, BTW.

Big advantage of MF from UITF- no taxes from your capital gains. Not to mention dividends and bonuses( the listed stocks do give out cash dividends and stock dividends which are given as additional NAVPS so as not to be taxed if given as cash.)


GoodSteward

  • VIP 3500
  • *****
    • Posts: 3,991
    • Likes Received: +4/-0
There 2 sides in a coin, for me naman , i prefer uitf. One its more convenient. The bank is my neighbor. Two, More simple, no extra deductions for entrance and exit fee. Whats shown on their NAVPU is what you get.

I should agree theres no after sales support for UITF. Meron ba sa mutual fund? Boss freefront, may i know what mutual fund youre into and you get tips from them if things seem to get bad?

As to the capital gain tax that you mentioned that exists in UITFs, do you mean they incorporated in the computation of the NAVPU or they deduct it once you want to terminate your account?


rael

  • Forum Expert 600
  • ****
    • Posts: 621
    • Likes Received: +0/-0
i'm not sure how after sales service works for UITFs/MFs. coz if you're in this type of investment, then customers are expected to be aware of how these investments work. meaning, you'll do the monitoring yourself (if you want), or even close your eyes, come back after 10 years and see what happens. it's personal discretion.

so it's not the job of fund managers to notify investors of ongoing declines. if that becomes practice, then stock crashes will be more severe coz it's like asking everybody to redeem/sell.


freefront

  • VIP 4500
  • *****
    • Posts: 4,888
    • Likes Received: +9/-0

There 2 sides in a coin, for me naman , i prefer uitf. One its more convenient. The bank is my neighbor. Two, More simple, no extra deductions for entrance and exit fee. Whats shown on their NAVPU is what you get.

I should agree theres no after sales support for UITF. Meron ba sa mutual fund? Boss freefront, may i know what mutual fund youre into and you get tips from them if things seem to get bad?

As to the capital gain tax that you mentioned that exists in UITFs, do you mean they incorporated in the computation of the NAVPU or they deduct it once you want to terminate your account?


I think the bank gets paid by the very wide spread between what their fund managers make in the market and what they actually give to your account. Sorta like they lend people's money as mortgage loan for 11% and give back .75% interest less 20% taxes withheld( you see these entries in your passbook accounts). Also, any money you earn from a bank gets taxed. As of now, the SEC rule says MF incomes are not taxable.

I think BDO has a buy and sell spread, too. Just like they buy your dollar for 46php to 1 dollar but will sell you the same dollar for 46.60. The fundamentals was taught to me around 5 years ago, but if I remember right, if you have a buy/sell spread, you don't pay charges to go in or out. And the spread widens or contracts depending on the demand or lack thereof. I currently use front load option in MF. I want to see my gains free and clear at the end of the day so I pay upfront.

The matter of convenience is ok with MF because investment solicitors meet up with you. Aftersales service? You can monitor Navps via internet (you get a mailer for a password) or ask your financial advisor to alert you of big movements or impending ones. There was an alert, via text, when Lehman's went down( can't remember the date), they just inform. But you will act at your own discretion. I add to my shares by PDC warehousing so I don't need my solicitor too often. If you want to be ready, ask your investment solicitor to prepare an order ticket for you to fax if you notice something you like/do not like in terms of movement( i have no idea if the company sanctions this or not).

Sorry to have run off your ears but this is my favorite product. I even experimented( with a small batch of order) if it is wiser to get the 2% bonus shares or redeem at a high and go in as the navps naturally goes down right after the distribution. The movements were too fast and I am just a small fish in the pond. A fail, but a lesson wisely learned.

I have Sunlife's equity and dollar advantage fund. I used to have MFIC( not very sure with the name anymore but I think they used to be kabuhayan fund or something). Sunlife gives 2% dividend in the form of shares every September or Nov. so they can distribute what the companies in their portfolio declared in shares and stocks. I was made to understand they do that to get away from bothering the investors with taxes. Cash payout=with tax. Distributed shares= tax free.
« Last Edit: Dec 24, 2009, 04:15 PM by freefront »


GoodSteward

  • VIP 3500
  • *****
    • Posts: 3,991
    • Likes Received: +4/-0
Agree with rael, not much of after service for uitf and mutual fund i guess. Uitf NAVPUS are also posted in the bank's website.

As to the taxation if there is indeed any, its embeded in uitfs computation of their NAVPU, so i couldnt care much. I monitor Bdo bond fund and balanced fund, i have their NAVPUs.

Sir freefront, im not here to argue but also want to find out if uitf perfroms better than mutual fund or not...Its for the investor's advantage if we can maximize our investment returns.

Sir freefront, do you happen to have Sunlifes NAVPs maybe of past few months, say last june, any date? then lets try to compute if it gains more or uitf gains more...Thanks...its for our benefits actually...


AbysmalSpecter

  • Forum Champion 800
  • ****
    • Posts: 815
    • Likes Received: +0/-0
I opened my MF account last January 2008.  Two years from account opening date, wala na ako exit fee.  So far, maganda naman.  My portoflio is up 21%. :)
Posted on: Dec 24, 2009, 11:10 PM
Next year po, I will try UITF.  My first target is DBP's Gintong Sikap


tops5450

  • PMT Jedi 2000
  • ****
    • Posts: 2,260
    • Likes Received: +0/-0

I opened my MF account last January 2008.  Two years from account opening date, wala na ako exit fee.  So far, maganda naman.  My portoflio is up 21%. :)
Posted on: Dec 24, 2009, 11:10 PM
Next year po, I will try UITF.  My first target is DBP's Gintong Sikap


sir akala ko po wala na kayong pera :scratch: Pautang :help:


AbysmalSpecter

  • Forum Champion 800
  • ****
    • Posts: 815
    • Likes Received: +0/-0
Nyahahaha.  Mas madami ka po pera sa akin.  Nga pala pagbalik ko from Lucena, send ko sa inyo pictures ng mga piggies. :)  We have 53 heads na ngayon.


freefront

  • VIP 4500
  • *****
    • Posts: 4,888
    • Likes Received: +9/-0

Agree with rael, not much of after service for uitf and mutual fund i guess. Uitf NAVPUS are also posted in the bank's website.

As to the taxation if there is indeed any, its embeded in uitfs computation of their NAVPU, so i couldnt care much. I monitor Bdo bond fund and balanced fund, i have their NAVPUs.

Sir freefront, im not here to argue but also want to find out if uitf perfroms better than mutual fund or not...Its for the investor's advantage if we can maximize our investment returns.

Sir freefront, do you happen to have Sunlifes NAVPs maybe of past few months, say last june, any date? then lets try to compute if it gains more or uitf gains more...Thanks...its for our benefits actually...


So sorry but I usually don't keep those stuff. If somebody here is from sunlife-they can probably dig it up. I know they can access historical prices.

As for the gains, if you are an investor who has a finger on the pulse of your investment, you can lock in your gains because you are given 4 free movements per placement per year. I am actually envious of those people who went out of equities with their stop loss and jumped back in around the end of feb. 2009. More than 30% in gains to date.



suzaku

  • Senior Member
  • **
    • Posts: 59
    • Likes Received: +0/-0

Sir freefront, do you happen to have Sunlifes NAVPs maybe of past few months, say last june, any date? then lets try to compute if it gains more or uitf gains more...Thanks...its for our benefits actually...

You can check historical navs from sunlife's website http://www.sunlife.com.ph/slfglobal/v/index.jsp?vgnextoid=2d191bfeb2653210VgnVCM1000009b80d09fRCRD&vgnLocale=en_CA
« Last Edit: Dec 26, 2009, 06:43 PM by suzaku »


crigor

  • Probie
  • **
    • Posts: 21
    • Likes Received: +0/-0

rds

  • PMT Jedi 2000
  • ****
    • Posts: 2,048
    • Likes Received: +0/-0
nung umuwi ako ng pinas last december, i want to open a uitf account sa metro.

may account din kami dun as savings, e balak ko sanang palipat sa uitf, kasi mas malaki daw interest.

laking gulat ko ng mag-inquire ako sa metro, sa province namin, to open a uitf account, sinabi sa kin ng teller na minimum daw ay 1M for that kind of account. e wala pa sa quarter ng 1M yung pera namin sa savings. di na natuloy.

pagkaka-alam kong kahit 50k, as per metro website e pwede na for uitf, yet still nagdalawang isip ako na baka nga mas malaki ang opening amount sa aming branch kasi nasa province kami.

do you have any idea guys if the uitf policy of the same bank varies depende sa area o branch?


rael

  • Forum Expert 600
  • ****
    • Posts: 621
    • Likes Received: +0/-0
it should be the same minimum across the board. go check po their minimum requirements from their websites.


sam

  • Senior Member
  • **
    • Posts: 95
    • Likes Received: +0/-0


laking gulat ko ng mag-inquire ako sa metro, sa province namin, to open a uitf account, sinabi sa kin ng teller na minimum daw ay 1M for that kind of account.

do you have any idea guys if the uitf policy of the same bank varies depende sa area o branch?


malamng SDA yung 1M na sinabi sayo hindi uitf, naginquire kasi ko sa metrobank ng SDA ang minimum nila 1M


 


PMT Shoutbox

Refresh History
  • Post only questions or comments here. Advertisements NOT ALLOWED.
  • Niel Jhacoubs: To bpc85 kung nakalagay ang inyong names sa beneficiary list ng iyong ama kay may makukuha po kayo.
    Nov 28, 2019, 02:18 PM
  • Niel Jhacoubs: Hellooooo, its been a while. :)
    Nov 28, 2019, 02:16 PM
  • miakashidou31: hi , meron po ba ditong nagta transfer sa paypal?
    Nov 05, 2019, 01:46 PM
  • whennedy: good noon po
    Oct 18, 2019, 12:04 PM
  • edzlpdac: goood day po sa lahat!
    Oct 12, 2019, 03:37 PM
  • bpc85: ask lng sana ako kung may makukuha ba kami ng Mama ko at ako or mga kapatid ko sa benepisyo ng aming Ama bilang membro ng AFPSLAI. thank you po.
    Sep 27, 2019, 12:52 PM
  • bpc85: Hi guys, im new here,.
    Sep 27, 2019, 12:52 PM
  • Anaperdi: Hi just want to know if meron dito who is into boundary hulog ng motorcycle? For mga riders ng courier. Pwede ba magpashare how it works? Naisip ko lang baka pwede ko ibusiness, meron na pala mga posts online pero di pa clear ang system sa akin. thank  you sa makakapansin
    Sep 21, 2019, 11:32 AM
  • Anaperdi: Hi newbie here..
    Sep 21, 2019, 11:19 AM
  • jprios: May contact ba kayo kung sakali?
    Sep 18, 2019, 06:11 PM
  • jprios: Sino pwedeng mahiraman dito?
    Sep 18, 2019, 06:09 PM
  • kfg52: Present!
    Sep 15, 2019, 07:26 PM
  • juju31: san po ba may nag papahiram dito
    Sep 14, 2019, 07:18 PM
  • juju31: hello
    Sep 14, 2019, 07:18 PM
  • FutureGizmo: Thanks julz! Medyo ganun nga trabaho namin ngayon, to monitor spam posts kasi ang daming spam bots. But thanks for reporting. Auto-ban agad ang spammers sa amin haha
    Sep 07, 2019, 12:17 PM
  • julz: @FutureGizmo si @nikkikv18 just posted more than 10 posts about porn sites. hay, spam.
    Sep 03, 2019, 01:05 PM
  • Cid_brent: sino po dyan pwede magbigay send ng paypal funds and I will pay you using gcash?
    Aug 25, 2019, 08:58 PM
  • Meghan91811: Sino po may alam about Rice Farming...
    Aug 25, 2019, 07:44 AM
  • roselove: hello po sa inyo... newbie here
    Aug 06, 2019, 03:31 PM
  • Niel Jhacoubs: Sino palaging active dito?
    Jul 30, 2019, 04:15 PM
  • dagocjasonrey: Anong update dito?
    Jul 22, 2019, 08:49 PM
  • mark_Lee: anong bago dito
    Jun 28, 2019, 01:03 AM
  • mark_Lee: balita
    Jun 28, 2019, 01:03 AM
  • Lovelyprincess72: hi everyone , I'm newbie here
    Jun 27, 2019, 02:36 PM
  • Niel Jhacoubs: Musta?
    Jun 26, 2019, 01:43 PM
  • Forexanalysis: Hello
    Jun 25, 2019, 06:33 PM
  • Niel Jhacoubs: Hello sa mga online jan! :)
    Jun 15, 2019, 02:58 PM
  • oragon: :applause:
    May 20, 2019, 03:53 PM
  • FutureGizmo: Thank you for reporting those spam posts, oragon! Spam posts now deleted.
    May 20, 2019, 01:59 PM
  • oragon: Admin kindly monitor some peps! posting and sharing inappropriate nude photos and website links
    May 20, 2019, 01:52 PM
  • @culinary10: Hello I am new here! Regarding sa bdo life insurance for 8 years, pwede pa kaya ma refund yung binayad ko na 50k last year? Gusto ko sana icancel kasi lack of financial na, last may 15 2018 po un nag start ako ng life insurance, pinili ko annually kaso etong may 15 2019 wala nako ma ipay so gusto ko sana icash out, may alam ba kayo kung pano marerefund?
    May 17, 2019, 07:56 PM
  • FutureGizmo: Hi Sonny, the posting issue is now resolved. Thanks for informing us! We're currently testing a new, mobile-ready theme so let us us know kung may problema pa sa Forum. :)
    Apr 04, 2019, 10:40 AM
  • sonny.wapak: Nakaka receive din ba kayo nito pag gawa ng new post? "Please try again. If you come back to this error screen, report the error to an administrator."
    Apr 03, 2019, 10:56 PM
  • leonine_zafiro: what product nun?
    Apr 01, 2019, 10:25 PM
  • dhondiex27: hi
    Mar 30, 2019, 10:55 PM
  • lusart: jayrob i agree 200%. hulog ng langit organico. legit na legit
    Mar 29, 2019, 09:08 AM
  • palemelch: Hi
    Mar 28, 2019, 04:08 PM
  • O.C.W._AK: Magandang Araw sa Lahat! Blessings! (",)
    Mar 28, 2019, 08:42 AM
  • thor15: hello everyone, newbie here
    Mar 25, 2019, 01:47 AM
  • captjaylo: present newbie here
    Mar 22, 2019, 10:06 AM
  • balboagilbert26: hello Guys .. Newbie here
    Mar 21, 2019, 10:55 PM
  • businesswoman2019: @jefsanity nag inquire na po ako pero di sila nagdidisclose. Yung branch po kasi na target ko, currently building pa.
    Mar 21, 2019, 04:27 PM
  • jefsanity: @businesswoman2019, much better inquire ka na lang sa admin nila.
    Mar 21, 2019, 01:51 PM
  • businesswoman2019: Hello! Any idea how much ang stall sa waltermart. 2m x 2m
    Mar 21, 2019, 08:28 AM
  • John Neil: Looking for an accredited iron foundry
    Mar 17, 2019, 03:19 PM
  • jayrob: Mark_Lee ung organico legit po yan..  Member din AQ..
    Mar 17, 2019, 12:57 AM
  • perlymelad: Hello po! Need advice, why my new MLM leaders failing?
    Mar 14, 2019, 08:51 PM
  • perlymelad: Present
    Mar 12, 2019, 07:53 PM
  • kennethmauricio: Hi saan po dito pwede mag post ng for sale properties?
    Mar 11, 2019, 07:58 PM
  • jefsanity: @mark_lee isipin mo anu passion mo at skills mo...
    Mar 11, 2019, 06:52 PM