UITF vs. Mutual Funds

[joop]

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@metz,. mao lage testing lang ko ani brod
@jeschel,. thanks for the link bro
yes boss sort of conservative ni siya nga uitf (investing DMMF), b4 you commit for the investment they conduct a test man gud just to gauge you if you're an aggresive or conservative nga pagka investor, so didto sila mag base sa imong gipangtubag.

[Metz]

@metz,. mao lage testing lang ko ani brod
@jeschel,. thanks for the link bro
yes boss sort of conservative ni siya nga uitf (investing DMMF), b4 you commit for the investment they conduct a test man gud just to gauge you if you're an aggresive or conservative nga pagka investor, so didto sila mag base sa imong gipangtubag.

Gl bai, happy investing.

[dleniako]

hinay man gyud nang balance fund... bisan asa nga MF or UITF.. kay safer mana xa kaysa equity fund. try bdo equity fund, dba dako2x ug gain.

thanks sa advice..actually.. lossing ko this past few days...i hope maka bawi ko...i'll withdraw it and transfer it sa equity...i was thinking of it man pud..by d way, ga invest pud ka sa bdo uitf?

[jeshcel]

thanks sa advice..actually.. lossing ko this past few days...i hope maka bawi ko...i'll withdraw it and transfer it sa equity...i was thinking of it man pud..by d way, ga invest pud ka sa bdo uitf?

bdo equity fund. though wa nko napun-an kay naa ko sa MF sah. pro pra nko murag mas nindot ang MF kay pwede masagol ang shares. ang sa uitf kay di man, lahi2x daw ug certificate gyud if mag-add ka ug funds. dayon lahi2x gyud xa.

[Millionaire Acts]

Mutual Fund:
-tax-exempt
-managed by investment companies
-has common shares (people are called investors/shareholders) w/ voting power
-monitored by SEC (secirities & exchange commission)
-has independent custodian to hold assets
-with full disclosure
-without reserve requirements
-with prospectus to verify its assets and company profile.

UITF:
-with tax (20% withholding tax)
-managed by Trust department
-units of participation (no voting power)
-monitored by Bangko Sentral ng Pilipinas
-Bank itself holds assets
-has NO full disclosure
-with reserve requirements
-NO Prospectus

I've detailed the similarities and differences between the two in my blog Mutual Funds vs UITFs

[Metz]

MF is better jud kay walay withholding tax.

[facebook]

Mutual Funds

* Advantages
1. Usually has a longer track record
2. Has greater regulation for they are required to submit regular reports and are subject to full disclosure
3. Funds are more independent, with separate fund managers, independent custodians and own board of directors
4. More transparent and has higher accountability, with shareholder rights, licensed agents, prospectuses, and annual reports to investors
5. It is tax-exempt
* Disadvantages
1. Has higher management fees
2. May offer fewer investment choices for investors due to high capital requirements

Unit Investment Trust Funds

* Advantages
1. A wider range of investment options available for investors
2. Has usually no or very low sales charge
3. Has lower management fees
* Disadvantages
1. Has less regulation
2. Is less transparent with its investments
3. Comes with a 20% withholding tax on capital gains

I hope this article was able to help you know the difference between

Source: Mutual Funds and Unit Investment Trust Funds, What's The Difference?

this is the reason why i wanted to give this a shot as compared to MF

[Metz]

what made you choose UITF bai?

[istoryamember]

il go for MF kay if long term siya, wala na ang exit fee. Sa FAMI, exit fee niya is 1% and ang holding period is only 6 months ra. Ang management fee I think computed na na diha sa NAVPS? Ang minimum additional is very cheap so ang average investor maka add dayon, dili na kailangan tigumon pa ang i-add.

[Metz]

il go for MF kay if long term siya, wala na ang exit fee. Sa FAMI, exit fee niya is 1% and ang holding period is only 6 months ra. Ang management fee I think computed na na diha sa NAVPS? Ang minimum additional is very cheap so ang average investor maka add dayon, dili na kailangan tigumon pa ang i-add.

dako ra kaayo ang 20% withholding tax uy.
sa MF, kay sa entry fee ra ang tax.

so if mo gain tag 1M sa UITF, taxan ta ug 200k?


also mahal sad ang UITF kay per unit ang paliton. The cheapest I saw was 10k. Sa MF you can invest as low as 1k.