Mutual Funds VS UITF

[makie]

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If returns are your sole concern, UITFs and MFs normally give "same" results.
I quoted "same" since the returns are more or less at the same range.
Regardless if its a MF or UITF, better look at the historical performance of the funds. It will more or less give you the idea how it will perform in the future.
Though it's true that past performances are not indicators of future results, sometimes it is a factor especially if a certain fund keeps and doesn't make adjustments to its fund management roster.

[aspirant]

nindot kaha ron mosugod sa uitf? plano ta ko mo open ug bpi equity value fund pero hadlok ky taas namn daw kaau ron, bacn mokalit ubos.. any thoughts?

[nowayL]

Invested sa BDO equity fund last 10 April, pagkadawat nako sa COP it seems nga wala gyud silay gikuha as front fee kay pag-compute nako sa NAVPU on the day I invested, sakto gyud ang number of units vs sa amount sa akong gi-invest. 1.2% dayon after 2 days ... hehe. Decided to add dayon kay basin mosotoy sayang kung dili kasakay. Not to mention sa very good service sa branch ... hehe

[powerplay]

nindot kaha ron mosugod sa uitf? plano ta ko mo open ug bpi equity value fund pero hadlok ky taas namn daw kaau ron, bacn mokalit ubos.. any thoughts?

you can probably buy on dips to maximize the return, but normally you invest in mutual funds with a long term perspective so that you will not be affected much by the short term fluctuations. so if you think long term, it is good to invest now

[aspirant]

you can probably buy on dips to maximize the return, but normally you invest in mutual funds with a long term perspective so that you will not be affected much by the short term fluctuations. so if you think long term, it is good to invest now

yes, plano ta nako invest 2-3 yrs nya magcost averaging lng ko.. huwat lng guro sa ko if moubos gamay within this week.. salamat sa input boss..

[makie]

Invested sa BDO equity fund last 10 April, pagkadawat nako sa COP it seems nga wala gyud silay gikuha as front fee kay pag-compute nako sa NAVPU on the day I invested, sakto gyud ang number of units vs sa amount sa akong gi-invest. 1.2% dayon after 2 days ... hehe. Decided to add dayon kay basin mosotoy sayang kung dili kasakay. Not to mention sa very good service sa branch ... hehe

UITFs have lesser charges compared to mutual funds. Sometimes, like in your case, wala ni sila charges.
However, just be informed that UITFs are subjected to 20% withholding tax on capital gains.

[powerplay]

UITFs have lesser charges compared to mutual funds. Sometimes, like in your case, wala ni sila charges.
However, just be informed that UITFs are subjected to 20% withholding tax on capital gains.

hi makie, can you expound more on 20% withholding tax on capital gains?

for example, i invested 100k on a UITF with NAVPU of 1.00.
when i take out my investment, NAVPU is already 1.30.
how do you compute the 20% w/h tax?

is this correct?
(100k x 1.30) - (100k x (1.30 - 1.00) x 20%)
= 130k - (100k x 0.30 x 20%)
= 130k - 6k
= 124k

[MK]

this is still a misconception until now..
the published navpu of uitf's are already net of taxes...it's already priced-in. It's already paid by the fund.
so what you see on the performance is what you get..

[MK]

this is still a misconception until now..
the published navpu of uitf's are already net of taxes...it's already priced-in. It's already paid by the fund.
so what you see on the performance is what you get..

Punongbayan & Araullo - Taxation of Unit Investment Trust Funds (UITF)

if you know a bank that still charges 20% upon redemption, it's good to list them here for our reference

[nowayL]

UITFs have lesser charges compared to mutual funds. Sometimes, like in your case, wala ni sila charges.
However, just be informed that UITFs are subjected to 20% withholding tax on capital gains.

Yes BroMK thanks sa heads up pero dili kaayo nako ma-feel tungod sa iyang performance ug wala siyay charges. Bali kung pila ang amount akong gi-invest equal gyud sa number of units nga akong na-receive. Anyways net naman siya basin deducted nani tanan sa BDO in my case ...... BTW, BroMK grabe ka gamay man diay ug interest sa SDA sa kay nag-park ko sa SDA sa BDO while naghuwat ug oppurtunities kay nag-PCA nalang ko sa akong BDO Equity and effective man gyud diay siya kay dili naman ka mag-mind sa NAVPU kung dili sa number og shares naman. Hinay2x na gyud ko kasabot sa mga diskarte aning investments ..... hehe