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Choose: Mutual Funds vs. UITFs

tyronesolee · 33 · 10549

tyronesolee

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on: Dec 05, 2008, 10:56 AM
Which one would you choose? Are there any similarities and differences? Which one do you prefer?

http://www.millionaireacts.com/125/choose-mutual-funds-vs-uitfs.html


mdejess

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Reply #1 on: May 01, 2014, 05:50 AM
If only we can get to know how many investors have put how much of their money into what funds with what fund operators, then we can at least guide ourselves, namely, to put our money where a lot of folks like ourselves do, that is the idea of safety in number -- of course it does not always work out to be safe, because humans are most likable to follow the herd blindly.

So, follow the number but don't act without critical intelligence.



Mdejess


LiveLoveInvest

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Reply #2 on: May 02, 2014, 11:11 AM
almost 6 years ng tulog topic binuhay  :applause:

pero if sakin lang, It's better to have both or one of each atleast come year end you have a point of comparison of the yearly returns of all your investments  :D

just my 2 cents though  :thankyou:
« Last Edit: May 02, 2014, 11:15 AM by LiveLoveInvest »


dame016

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Reply #3 on: May 12, 2014, 09:38 AM
Which is better really depends on the purpose of the fund. Know first the purpose of your investment before deciding where to put it. If you're thinking long-term with bulky investments, then I think you should consider the 20% withholding tax on UITF's capital gains vs. the sales load ng MF's. Have a mock computation kung saan ka mag ge-gain ng mas mataas. Don't just play with the rates of returns, consider the fees din.

So, my answer to this question is again, it depends on the purpose of the fund.


palailai

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Reply #4 on: May 12, 2014, 01:01 PM
stock investing, MF & UITF are all paper assets....better diversify! mag-pi-pinsan lang ang mga 'yan!


richpulubi

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Reply #5 on: May 26, 2014, 11:35 AM
You know kay tagal ko nang pinagiisipan ang advantages ng mf sa uitf...

so far, talagang wala akong maisip!!!!

Am I missing something?


GoodSteward

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Reply #6 on: May 26, 2014, 12:40 PM
You know kay tagal ko nang pinagiisipan ang advantages ng mf sa uitf...

so far, talagang wala akong maisip!!!!

Am I missing something?

Haha.. ako din, mutual fund just sounds more "investment savvy" I think. When you read finance news, how many times do we encounter "uitf"?

The only advantage of mutual fund is maybe they have more fund options, at least in other countries like Singapore, they have ASEAn funds, etc etc... Id be interested in mutual funds here in our country if they can offer something that uitf doesnt have.
« Last Edit: May 26, 2014, 12:42 PM by GoodSteward »


richpulubi

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Reply #7 on: May 26, 2014, 03:56 PM
Ayun nga!  We just get to hear about mf's more cuz tinutulak nga ahente!!! And uitf, wala naman atang kumisiyon ang banko...kaya, halos walang promotion.

At syempre, itutulak ng ahente...kasi kanila yung saleload!!!


LiveLoveInvest

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Reply #8 on: May 27, 2014, 09:39 AM
You know kay tagal ko nang pinagiisipan ang advantages ng mf sa uitf...

so far, talagang wala akong maisip!!!!

Am I missing something?

How about track record?  :D

since in MF you get a hold of shares while in uitf you hold on to units.

So in MF you are basically a part owner of the mutual fund company. so as a shareholder you get the 7 ( 7 right? hehe )  distinct rights of a shareholder.


richpulubi

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Reply #9 on: May 27, 2014, 03:42 PM
How about track record?  :D

since in MF you get a hold of shares while in uitf you hold on to units.

So in MF you are basically a part owner of the mutual fund company. so as a shareholder you get the 7 ( 7 right? hehe )  distinct rights of a shareholder.

Can you kindly give an example? 


freefront

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Reply #10 on: May 27, 2014, 11:58 PM
You know kay tagal ko nang pinagiisipan ang advantages ng mf sa uitf...

so far, talagang wala akong maisip!!!!

Am I missing something?

Number One: the caveat on the prospectus that says,in effect, that to this date, MF gains are not taxable. But that could change( Sen. Enrile was the only poltician that ever suggested that it'd be taxed. Good thing that didn't happen because this is a country that has a dismal record on saving and investing. Take away one more tax-free vehicle and that's a lot of money shying away from a potentially uplifting way of making money out of your money).

i don't know if it still holds true, but retirement funds of SSS, GSIS, SEC, etc. employees are in MF bec. of the tax exemption.

Number two: Whatever you may call it- management fee, sales load, freakin' whatever---there's is always that because overhead is always there to pay for. You buy a car and the dealer finds a way to pay his staff. It is that simple. Patas ang UITF at MF dyan. Parehong meron silang salesload kasi may mga pinapasweldo sila. Kung sino ang mas mura, kayo na mamili. In a nutshell, you get what you pay for---after you've done due diligence.

I repeat, balutin pa yan ng pambalot ng turon, meron silang salesload pareho. Magkaiba lang ang tawag. For me, it is one more hurdle for investors to make it harder to compare which gives more net income.

.....and about 3 or more salient points like accessibility, talents within the funds, stock divs, TAT, promos., etc, etc.


richpulubi

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Reply #11 on: May 28, 2014, 11:00 AM
Number One: the caveat on the prospectus that says,in effect, that to this date, MF gains are not taxable. But that could change( Sen. Enrile was the only poltician that ever suggested that it'd be taxed. Good thing that didn't happen because this is a country that has a dismal record on saving and investing. Take away one more tax-free vehicle and that's a lot of money shying away from a potentially uplifting way of making money out of your money).

i don't know if it still holds true, but retirement funds of SSS, GSIS, SEC, etc. employees are in MF bec. of the tax exemption.

Number two: Whatever you may call it- management fee, sales load, freakin' whatever---there's is always that because overhead is always there to pay for. You buy a car and the dealer finds a way to pay his staff. It is that simple. Patas ang UITF at MF dyan. Parehong meron silang salesload kasi may mga pinapasweldo sila. Kung sino ang mas mura, kayo na mamili. In a nutshell, you get what you pay for---after you've done due diligence.

I repeat, balutin pa yan ng pambalot ng turon, meron silang salesload pareho. Magkaiba lang ang tawag. For me, it is one more hurdle for investors to make it harder to compare which gives more net income.

.....and about 3 or more salient points like accessibility, talents within the funds, stock divs, TAT, promos., etc, etc.

Doc, you may need to double check...

management fee is different from salesload.  Salesload, whether frontend or backend, is wherein you are charged a small percent of your investment just for you to buy a mf.  Usually ata, 2% kung maliit ang investment mo, so if you'll invest P10,000, you end up charged P200, then your investment will sart at P9200, instead of P10000. 

While with uitf's, there is no salesload, and when you invest P10000, your money starts at P10000, EXCEPT when you invest in Odyssey or unionbank. 

Management fee is present ata in all funds...I'm not sure of ETF's and index funds though.

As to tax, only ata if you invest in a PERA account that your invesmtents are tax free...all others have tax.
« Last Edit: May 28, 2014, 11:02 AM by richpulubi »


LiveLoveInvest

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Reply #12 on: May 28, 2014, 11:31 AM
Can you kindly give an example?

-Right to vote
•Transfer shares
•Right to inspect
•Right to remaining assets
•Right to dividends
•Receive stock certificate

 :hello:


mxherr5

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Reply #13 on: May 28, 2014, 01:00 PM
@richpulubi, right on. And you suffer from dealing with clueless
tellers in exchange for zero sales load ;-)


LiveLoveInvest

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Reply #14 on: May 28, 2014, 02:03 PM
in MF it's tax free, idk lang with uitf if its the same  :help:


 


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