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Differences between Mutual Funds and UITFs

A lot of our readers have been sending us inquiries regarding Mutual Funds and Unit Investment Trust Funds (UITFs), particularly the differences between the two.

In response, we summarize here the basic differences between Mutual Funds and UITFs.

Comparison of Mutual Funds and Unit Investment Trust Funds


Offerer. Mutual Funds are offered by investment companies independently registered as such. Therefore, when you buy a mutual fund share, you become a stockholder of that company and you acquire the rights of a regular stockholder, including right to vote and right to receive dividends, among others. UITF, on the other hand, is a trust product of banks. When you buy a UITF, you buy investment units, not shares of the company. Therefore, you do not acquire shareholder rights in that bank. A UITF, although a bank product, is not a deposit product which means it is not covered by the Philippine Deposit Insurance Corporation (PDIC).

Fund Manager. In mutual funds, money is entrusted to a full-time professional fund manager appointed by the investment company. In UITFs, money is managed by the Trust Group of the bank.

Price. The price of a MF share or a UITF unit is measured by its current net asset value. The Net Asset Value (NAV) is simply the difference between the values of the fund’s assets less total liabilities. This total NAV is divided by the number of MF shares or UITF units outstanding. In the case of mutual funds, this is called NAVPS (Net Asset Value per Share) and in the case of UITFs, is called NAVPU (Net Asset Value per Unit).

Fees. Investments in mutual funds are charged sales loads, which may be in the form of entry or exit fees. Entry fees are outright expenses charged prior to opening a mutual fund account. Exit fees, or redemption fees, are charged when shares are redeemed and converted to cash. UITFs don’t have entry or exit fees, but are charged a management or trust fee, which is usually a certain percentage of the invested amount.

Applicable Law. A specific law called the “Investment Company Act of the Philippines” governs mutual fund companies. UITF products, on the other hand, are not governed by any specific law at present but since they are offered by banks, they are still under Philippine banking laws.

Regulatory Body. Mutual funds are registered companies, therefore, they are regulated by the Philippine Securities and Exchange Commission (SEC). UITFs, as bank products, are regulated by the Bangko Sentral ng Pilipinas (BSP).

Sales Agents. To be able to sell mutual fund shares, a person must be a Certified Investment Solicitor, a license given by the SEC to people allowed to sell mutual funds. UITFs, on the other hand, are offered by people who may or may not have the SEC license. These are usually staff in bank branches.

So which one is better: Mutual Fund or UITF? That depends on a lot of factors. Browse through our other articles or join the discussion forum below to help you decide which one to go for.

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42 thoughts on “Differences between Mutual Funds and UITFs”

  1. Bro Willy says:

    Bro. James ,

    Before any thing else. Happy happy New Year tiger. Kahit huli ok pa rin hehehe. Thanks for this topic that it was included here. I appreciate very much regarding information on this. More power to you and to pinoymoneytalk, I learn a lot and blessings be upon to all the people who always a part of this. Proud to be pinoy.

    Bro. willy

    PS: May the abundance be this 1020, as they say ignorance is more expensive that education. To everyone be financially literate.

  2. Automatic Geek says:

    This is a pretty much interesting topic since I am still a beginner on investments. Now I know where the rich are making more money out of there money.

  3. F. Rex says:

    There are lot of differences are there between the mutual funds and UITFS .The mutual funds are being used for the investment purpose and the UTIFS is being used for the banking.

  4. rey says:


    Can anybody provide info if there is an existing company offering Registered Retirement Income Fund (RRIF) in the Phils? If there is any, what government agency regulating it? Is it secured by say, PDIC? This RRIF is similar with that of Canada. Under what existing Philippine laws this operation under? THANKS A LOT.


  5. Dennis says:

    Good morning PinoyMoneyTalk!

    I would like to thank everyone esp the mgt and the staff of this prgram.

    Well, anyways, I would like to know if how do we compute our earnings in mutual funds? How we able to determine of our earnings? Coz this kind of investment in mutual fund has just recently I know. Which means I am too new about this.. I would like to now a sound info about the matter.

    By the way, My name is Dennis, 20, a student and an entrepreneur, and presently researching about good investment to make me a lot of money. But surfing for a lot of learning.

    Thanks and more power… May more Filipino know this.

  6. romerico Lim says:

    Mutual fund has sales load (1% – 2.5%)upon your initial investment. MOstly the retention period for
    mutual fund is 2 years after that there is no exit fee. UITF retention period range from 30 days
    to 90 days after that you will not be charged for early redemption fee.

  7. sonny ferreras says:

    so which one is really better investment-wise, the mutual fund or the uitf?

    1. Galivee says:

      you read first robert kiyosaki’s book before investing in the stock market!! 

    2. Laong Laan says:

      Robert Kiyosaki said that it is better to start a business first before being an investor.

  8. ami gamaru says:

    i’ve been contemplating on investing in mutual funds.. i have read quite a few things about it, problem though, i don’t know where and how to start.. anyone!?

    1. mel says:

      You may visit for details of investment.

    2. Lee Paroa says:

      punta k s bpi mtutulungan k

  9. wendel says:

    which is a better way to invest money, by mutual fund or directly buying stocks?

    1. Romhlim says:

      If you dont have time to monitor your stock. you invest in mutual fund or UITF….

    2. Marco Antonio says:

      Learn investment diversification, you can have it both.  Banks like BPI and BDO disclose the NAVPU everyday for you to monitor your investment.  When buying stocks look for a trader that has an online platform like Citisec Online and BPI Trade. :)   

  10. Li says:

    Hi, PMT. Which bank offers the best return so far?

    1. Galivee says:

      bdo and the most cheapest

    2. Marco Antonio says:

      BDO vs BPI, BPI is the cheapest, check this: for BPI

      and for BDO

      but better also to check with the other banks like UCPB and UnionBank :)

    3. Marco Antonio says:

      Cocolife for Mutual Fund and Union Bank for UITF

  11. andave says:

    hello pmt. im a young seafarer and s just learning how 2 nvest. nabasa k na po lahat ng libro from robert kiyosaki to fracisco colayco. tanong k lg po f which best suits for me consdrng that im always away from phil for 9-10 months.. is t mutual funds or uitf? thanks

    1. Rj says:

      hi andave,

      i suggest you must learn how to invest properly and safely first. when are you going back to the phils? mutual fund is suitable for us. i’m also an OFW but mutual fund is level 2 investment already. do you have level 1 yet? if you want to learn more email me God bless you keep safe always. cheers!

    2. Rodel Amansec says:

      Hi Rj,
      Im also an OFW and interest about this investment opportunity from either Mutual fund or UITF. May I know what Mutual fund is best to invest? You can PM through my email, Thanks

    3. ceferino says:

      hi rj,
      I’m also ofw tanong ko lng bakit nirecomend mo yung mutual fund ano ba ang maganda doon kaysa utif please email me also

    4. Jayson says:

      Hi Rj,
      Same here as well, I’m an OFW, kindly guide me also which is best to invest, is it MF or UITF?
      Many thanks and regards,

    5. Jayson says:

      Hi Rj,
      Same here as well, I’m an OFW, kindly guide me also which is best to invest, is it MF or UITF? here is my email
      Many thanks and regards,

    6. Lee Paroa says:

      hi andave f I were u visit k s bpi mtutulungan k mag invest

    7. ban says:

      helow guys which bank are good in mutual fund investment.. any one give me list for those having a good experience in mutual investment

  12. Summerhathyway says:

    this is so interesting post to read it..

  13. B in Innsbruck says:

    You should add info about which are better or at least the factors to consider.  Maybe you can add links to the posts on the forum that you mentioned.  I have zero interest in scrolling endlessly and aimlessly through the forum.

  14. Adam_dahl says:

     B in Innsbruck, its a way of spoon feeding

  15. Mike says:

    Im really interested to invest in Mutual funds.. But I have no idea how to start? anyone?

    1. edleon says:

      Go to any bank. MF is good for long term while UITF is better if you want to play your money especially in Balance Fund. UITF has no holding period so anytime basta na reached mo na yung percentage na kita na gusto mo, pwede ka na mag pullout. Sa MF you have to stay kahit nalulugi because of holding period (usually 6 months) otherwise you have to pay the early redemption fees.

    2. Florife says:

      Hi mike, have you invested already in either of the two?

  16. Ruby Michelle says:

    I would i know na kumita ang ang investment ko sa UITF kasi yung nakalagay sa fund investment summary ko ay – 12 dec-2012 philippine peso managed fund total units 240,034.0477 unit price 2.250099 Fund Value- 542,260.68 TOTAL 542,260.68.

  17. Calvin says:

    Im a financial advisor from Sunlife Financial. I can help u where to invest ur money wether in Mutual funds or stock market. Here is my no. 09166255856

  18. Ralde Deodor says:

    between MF and UITF, which one has more risk?

    1. Florife says:

      The higher the risk, the higher the return. In MF you have more choices, in which you want to invest. Whether the more risk or the less risk. You have your own choice.

  19. Edwin says:

    Isa akong seafarer.balak ko maginvest pagbalik ko ng pinas.San ba ang mas mabuti maginvest MF o UITF. Please send some ideas.thanks

    1. michael says:

      baka gusto nyo mag.invest sir na sa inu po napupunta ang komisyon just pm me po at my facebook account mic orotchimaro

  20. michael says:

    just join our company mas maganda u can choose various fund at ang mas maganda yong komisyon sa iyo mapupunta not same kung kukuha ka sa bank sa agent mapupunta yong komisyon..just pm me maraming previeledges kang makukuha just join our free seminars para malaman mo

    1. Vic says:

      Mr michael ano po ang nme ng comp nyo …interested p ako

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