UITF vs. Mutual Funds

[the_guardian]

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asa mas nindot aning duha?

unit invest trust fund or mutual funds?

i'm trying asses with BPI's UITF (since nag-promo sila nga 10K ra ang starting) against FAMI's mutual funds. since i would really like to invest on one.

asa ang mas nindot?, asa ang motubo atong money in the long run?

galibog man gud ko unsay difference sa duha...

please do advice people!!!!

thanks.

[wizard_jamex]

Kung interest rate ang basihan...MAS NINDOT ANG MF Compare sa UITF...

[wizard_jamex]

The Good thing about Mutual Funds is affordable compare to UITF. Initial Deposit of MF is 5k and additional investment is 1k. Unlike sa UITF, medyo Mahal ang UITF then add-on kay dako dako sad.

I forgot the name of the bank that offers UITF but the initial deposit of that Bank is Php 25,000 and add on ka is Php 10,000.00. Medyo mahal mahal jud. I don't know sa BPI UITF.

[wizard_jamex]

AKo lang ni copy and paste ang difference between UITF and MF....aron masabtan sa tanan....

[wizard_jamex]

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.

Source: Differences between Mutual Funds and UITFs : PinoyMoneyTalk.com – Make Money Online, Stocks, Forex, Mutual Funds Philippines

[wizard_jamex]

It was Novemebr 16, 2010 that I talked one of the istoryans here sa SM. He said to me that "Gamay ang tubo sa Money kung mag UITF ka compare sa MF. because what I posted a while ago...you don't buy shares sa UITF instead you buy unit investment.TF is not also covered by PDIC.

I hope that what I posted here in this thread would help you guys.

[makie]

Between UITF and mutual funds, I will go for mutual funds because of the thought that in mutual funds, you become a "part owner" of a company. In mutual funds, you buy shares which gives you ownership to several companies. Many companies do give dividends on a regular basis which I believe is one factor that raises the performance of mutual funds. You aren't entitled to dividends in UITF because you never own a part of a company.

Since both aren't covered by PDIC, it's wise to go for something that could give better returns for the same amount of risk. As far as the opening amount is concerned, you could open an account with FAMI for only P5,000, still lesser than the P10,000 promo price.

[Dako Ang Imo...]

Between UITF and mutual funds, I will go for mutual funds because of the thought that in mutual funds, you become a "part owner" of a company. In mutual funds, you buy shares which gives you ownership to several companies. Many companies do give dividends on a regular basis which I believe is one factor that raises the performance of mutual funds. You aren't entitled to dividends in UITF because you never own a part of a company.

Since both aren't covered by PDIC, it's wise to go for something that could give better returns for the same amount of risk. As far as the opening amount is concerned, you could open an account with FAMI for only P5,000, still lesser than the P10,000 promo price.

Unsa mana UITF? wala ko ke G....lageh. Sa mga experts diri...pasabta kuno mi....

[Dako Ang Imo...]

Taga IMG asa naman mo? Tubag sad mo intawon aron naa sad mi malearn....hehehehehe

[the_guardian]

ah...so ang UITF diay kay bank product na cya...samtang ang MF kay mura rakag ni palit ug stocks

ang akong gi-kalibugan bah kay ni ingon man gud ang ahente sa BPI nga same ra kuno ug portfolio an MF ug UITF...they invest in the same products or company...

ganahan man gud ko sa BPI kay nana koy account didto then dali ra nako ma-monitor online...