"How am I supposed to get invested when I am intimidated by all these numbers? I just want to yank my money onto some place trustworthy and forget the rest of the number games!" said my friend when our discussion tapped into important things that can make people rich (click HERE).
My friend's sentiment makes perfect sense, don't you think? While it's okay to encourage people to try stock market investing (directly), others may veer away due to it being all figures and more. Paano daw ang allergic sa math? :))
Then there's good news! Leading banks offer an investment product called Unit Investment Trust Fund or UITF. I'll leave you googling about these terms but simply put, it works like mutual funds (pakikibakas). One of the notable differences is that UITF is being handled by banks while mutual fund is managed by financial institution.
If you are a young professional who wants to set apart a fund for whatever purposes (retirement, travel, wedding, etc.) - you might find this interesting.
HOW TO INVEST IN BDO UITF ACCOUNT?
1. Visit any BDO branch. This is mandatory since the bank has to see that your money is not a result of theft or anything. Bank personnel need to validate your existence and signature. It's more like opening a savings bank account.
TIP: Call your bank branch in advance. I've read in some forums that some bank representatives do not know anything about this product. To ensure that your effort will not go to waste, call in advance and get the name of your contact person. When you personally visit the branch, look for your friendly bank rep.
2. Fill out their Account Opening Kit. No, this is not a quiz. They just need to make sure you understand the risks and rewards of investing in UITF. You just check the boxes and based on your preferences, they'll assess which product best suits your financial goals.
3. Hand over your initial investment to BDO representative. Their minimum investment is Php 10,000. I'm sure by this time, the pleasant BDO lady will share with you some pointers about UITF.
TIP: What you need to be familiar with is the price of each unit. UITF is UNIT investment trust fund. Each share is called a unit in a UITF world. When buying something, HOW MUCH is an important question.
Like share of stocks, the price of each unit varies everyday. You may buy a unit worth Php 1.00 today, tomorrow that same unit will cost Php 1.50. This unit price has a fancy name. It's whole name is NAVPU short for Net Asset Value Per Unit. Talk about cool terms.
4. Go back to get your UITF certificate. They need at least a week to process your initial investment. You'll be asked to go back and claim your UITF certificate. It's a document stating that you have xx number of shares at BDO UITF.
TIP: No brainer tip, but call again in advance. Going back (to the bank) is enough of a hassle, best you can do is to confirm that the document is ready for pickup.☺
There you go! Yank your money in. Wait out in 1, 3, 5 or 30 years. Then reap the maximum gains, God's willing. You can track your gains as they have online platform to keep you updated on your investment. Time permits, I'll be posting a separate write-up on that.
If you find these details overwhelming, that's okay. You didn't learn Facebook-ing in just a day. Take it easy. When you're ready, things will fall into their proper places. -CMK
My friend's sentiment makes perfect sense, don't you think? While it's okay to encourage people to try stock market investing (directly), others may veer away due to it being all figures and more. Paano daw ang allergic sa math? :))
Then there's good news! Leading banks offer an investment product called Unit Investment Trust Fund or UITF. I'll leave you googling about these terms but simply put, it works like mutual funds (pakikibakas). One of the notable differences is that UITF is being handled by banks while mutual fund is managed by financial institution.
If you are a young professional who wants to set apart a fund for whatever purposes (retirement, travel, wedding, etc.) - you might find this interesting.
HOW TO INVEST IN BDO UITF ACCOUNT?
1. Visit any BDO branch. This is mandatory since the bank has to see that your money is not a result of theft or anything. Bank personnel need to validate your existence and signature. It's more like opening a savings bank account.
TIP: Call your bank branch in advance. I've read in some forums that some bank representatives do not know anything about this product. To ensure that your effort will not go to waste, call in advance and get the name of your contact person. When you personally visit the branch, look for your friendly bank rep. 2. Fill out their Account Opening Kit. No, this is not a quiz. They just need to make sure you understand the risks and rewards of investing in UITF. You just check the boxes and based on your preferences, they'll assess which product best suits your financial goals.
3. Hand over your initial investment to BDO representative. Their minimum investment is Php 10,000. I'm sure by this time, the pleasant BDO lady will share with you some pointers about UITF.
TIP: What you need to be familiar with is the price of each unit. UITF is UNIT investment trust fund. Each share is called a unit in a UITF world. When buying something, HOW MUCH is an important question.
Like share of stocks, the price of each unit varies everyday. You may buy a unit worth Php 1.00 today, tomorrow that same unit will cost Php 1.50. This unit price has a fancy name. It's whole name is NAVPU short for Net Asset Value Per Unit. Talk about cool terms.
4. Go back to get your UITF certificate. They need at least a week to process your initial investment. You'll be asked to go back and claim your UITF certificate. It's a document stating that you have xx number of shares at BDO UITF.
TIP: No brainer tip, but call again in advance. Going back (to the bank) is enough of a hassle, best you can do is to confirm that the document is ready for pickup.☺
There you go! Yank your money in. Wait out in 1, 3, 5 or 30 years. Then reap the maximum gains, God's willing. You can track your gains as they have online platform to keep you updated on your investment. Time permits, I'll be posting a separate write-up on that.
If you find these details overwhelming, that's okay. You didn't learn Facebook-ing in just a day. Take it easy. When you're ready, things will fall into their proper places. -CMK
Great post Kristine, thanks a lot!
ReplyDeleteI believe investing in BDO stock would be an equally good opportunity to their UITFs. They're still the biggest bank in terms of assets, and their stock's value is steadily growing. If you want to learn more about this, you can read this article .
hi Kristine! What is the difference between Mutual Fund and UITF? thankie! :)
ReplyDeleteHiya - Mutual Funds are being operated by investment houses, while UITFs by banks :) Their logic is pretty much the same though. No worries <3
DeleteHi, I went to a BDO branch to open a savings acct and UITF- Fixed income. I would like to ask how do you transfer fund to top up or subscribe to your UITF acct, do I have to go to their branch again to top up or I can do it online?
ReplyDeleteHello! Unfortunately you have to go to their branch each time you want to top up! Hope this helps :)
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