How Do You Make Money From UITF Investing or Unit Investment Trust Funds?

Updated: May 16, 2024

I consider UITFs one of the most basic and simplest investment products. Surprisingly, many are unaware of exactly what it is and how one makes money from it.

That’s why I’m providing a basic explanation of what a UITF is. I will tell you how it works; how you make money, and where to go if you want to invest in UITFs.

What does UITF stand for?

So the first question that we should answer is, what does UITF stand for? It’s an acronym for Unit Investment Trust Fund.

First, I want you to focus on the word “FUND” because that’s what it is basically – a pool of money from many individuals.

Who gets the pool of money? The bank… or more specifically, the bank’s trust, investment, or treasury department.

A UITF is an investment product that most, if not all, commercial banks offer. And if you want to invest in a unit investment trust fund, the most common way is to simply go to your bank.

UITF is a fund, a pool of money.

UITF is a generic term, and banks often call them by many different names. One thing that they all have in common is that they have the word “FUND” at the end.

You can read through some examples from my past articles: Here are the investment funds of BPI, and here are the UITF products of BDO.

When you invest in a UITF, you are actually buying “units” or shares of the fund. That’s why there’s the word “UNIT” in UITF. And the price of one unit is often called NAVPU or Net Asset Value Per Unit.

So if the NAVPU of a UITF is at P1.50 and you invest P30,000 into the fund, then you will get 20,000 units of the fund in exchange for the money you gave to the bank.

When you invest in a UITF, the bank will (and should) give you a certificate that states exactly how many units you own. And in our example, your certificate will state that you own 20,000 units.

There are many kinds of UITF.

The bank, specifically the fund’s manager (or managers), will use your money and invest it in “more complicated” investment products like government securities, bonds, the stock market, and many others.

That’s why there are many kinds of UITF; its name usually indicates where the fund manager invests the money.

For example, the money pooled into BPI’s Short Term Fund is normally invested in short-term government securities, money market securities, and other highly marketable fixed-income instruments.

Meanwhile, the money pooled into BDO’s Equity Fund is normally invested in a diverse selection of stock exchange-listed companies.

UITFs have a fund manager.

The fund manager (who has everyone’s money) will now do their best to make the money grow by making good and sound investing decisions.

An equity fund manager, for example, will constantly study and monitor trends in the stock market so that the pool of money from the fund that is invested in it grows.

At the end of the day, if the market went well and the fund manager was able to make good decisions, then the fund’s net value will increase.

On the other hand, if the market went down and the fund manager could not cut investment losses, then the fund’s net value would decrease.

How do you know if the fund manager of your UITF had a “good day” or a “bad day”?

Check the price of the NAVPU. The change from yesterday’s price will indicate whether it was a good or bad day for the fund. And note that the NAVPU changes every day!

If the NAVPU yesterday was P1.50 and today it became P1.51, the market was good. But if the NAVPU today went down to only P1.49, the market was bad.

How do you earn from UITF?

This is how you earn (or lose money) from UITF investments…

Remember that your money is in the fund, and what you have in your possession is just a certificate that says you own 20,000 units.

When the time comes that you need the money, you can just go to the bank and say that you will redeem your investment.

This is basically saying that you want to give the 20,000 units back to the bank and take your money out of the fund. When you do this, the bank cannot say “No,” and they are obliged to exchange the units for cash based on the current NAVPU.

So let’s say after one year, the NAVPU has become P1.65. If you redeem your investment at this point, then you will receive P33,000 – which means you just earned P3,000 by investing P30,000 for one year in the UITF.

However, if the NAVPU after one year went down to P1.40 and you redeem your investment because you really, really need the money, then you will only receive P28,000 – which means you just lost P2,000.

Mutual Funds work the same way.

If you understand all that, you should know that mutual funds work similarly.

Of course, this is a very simplified version, and there will be fees, documentary stamps, taxes, and specific bank terms and conditions that you should be aware of before you invest in UITFs.

A good place to start reading is this article, where I compared mutual funds vs unit investment trust funds.

And that’s it!

I hope I was able to help you understand UITF better. If you have any questions, then don’t hesitate to ask through the comments section below, and I’ll try my best to answer them.

Don’t forget to like and share this post with your friends!

What to do next: Click here to start your financial journey with IMG Wealth Academy


  1. Thanks! I love these types of articles.

    I knew some of these already but the part about MF’s not being taxed is an eye-opener. I need to “recalibrate” my next round of investments!

  2. Fritz, you are an angel by writing this article! When I started out, it was the fund manager who explained this to me. Out of kindness and gratitude, I had to avail the products he was offering. Not that I regretted investing with him, but I wish I had better reasons on availing his products. I haven’t redeemed my UITF investments till now.

  3. Hi Fitz, thanks so much for this post. Do you think it is a good idea for me to leave my money untouched in a uitf for several years? I’m considering this as a retirement fund. Any suggestions will be appreciated. Thanks in advance!

  4. Thanks everyone for the comments.

    Can you share how long have you had your UITF investments and by how much percentage has it already grown? It would be interesting to know a real-life example.

    As for me, I have a balanced fund which I’ve been cost-averaging for more than three years now, and today, the value of my investment is around 60% up. A 20% average increase every year isn’t very bad, right?!

    I think it’s a good idea, but make sure it’s in a bond or equity fund because these UITF grow bigger than inflation rates, which is what you want primarily.

    Also, rather than investing all your extra money in one go, it’s better to do small, same-amount, regular-period investments (P1,000 every month for example). This strategy is called cost-averaging – which is good to do for long-term investing.

  5. what is the difference of buying units direct from the bank and buying a variable plan from sunlife which is also managed by fund managers ??

  6. Hi edith, they’re similar but not the same… the variable plan from Sunlife is no longer a UITF, strictly speaking. It’s already a different kind of investment – a mutual fund, or perhaps a VUL investment.

  7. Hi Fitz –

    Nice article! Thank you for making it so easy to digest πŸ™‚

    May I request that you also write about the “other types” of investments such as the VUL or the kind of things offered by Sunlife?

    I checked the details from their website and I’m having a hard time getting a clear view on how they work as investment instruments.

    It’s different when you’re the one explaining. I guess I just got used to reading your articles. Brief but comprehensive. πŸ™‚

    Thanks and more power!

  8. Hi Fitz. Is the ‘balanced fund which you cost average’ the same as the EIP (easy investment program) offered by Citiseconline? Is citiseconline reliable? If yes, and if i also invest with their peso cost averaging product, for how long should i invest? Is 5k/ month enough? Will wait for your advice. Thanks!

  9. Hi Richie,

    Citiseconline is a stock market broker and their EIP is for cost averaging on specific stock market shares in the Philippines.

    Banco de Oro is the one that offers EIP for UITF, they offer a wide range of funds, including the balanced fund. The mechanic is similar to Citiseconline’s EIP, they auto debit your decided amount from your savings account and buys units of your chosen fund every month (or whatever period you decide) – which allows you to do cost averaging.

    EIP (easy investment plan) is just a term for the program, and other banks have similar products that allow you to cost average UITFs.

    For example, Bank of the Philippine Islands (BPI) has the RSP or Regular Subscription Plan, which is exactly the same as BDO’s EIP.

    If your bank doesn’t have this kind of program, then you can always ask your branch manager if it’s possible to create this automatic investment mechanic for your account.

    Lastly, if all else “fails”, you can always do it by yourself and manually invest a fixed amount on a regular basis in a UITF (or other investment) product.

  10. Hi Erwin,

    Sun Life offers mutual fund products, which is similar to UITF. You can check out my previous post on those here:

    Sun Life Mutual Funds

    If you need clarification on any of those, just leave a comment there or send me an email. πŸ˜€

  11. Thanks Fitz for the prompt reply.

    If I may ask, where do you invest re your balanced fund?

    If i can afford 5k per month, where do you suggest i invest? I can moderately take a risk.

    Among BDO, BPI and Citiseconline, where do you suggest i invest?

    Thanks again for this great blog…great help for newbies like me…

  12. Hi Richie, I’m with BDO and BPI, specifically because both have cost-averaging programs which makes investing automatic for me.

    My suggestion is to invest in the bank where you already have an account. And let their wealth management officer determine the right investment for you, i.e. take their risk assessment test.

    Consider Citiseconline (stock market investing) if you can already afford long-term high risks.

  13. Hi Everyone!

    I’ve explored UITF investing about 6 years back, and I’m convinced the adage “don’t invest in the banks but rather where the banks invest” to be true. It’s truly investment (generally more than 10%pa roi) compared to savings which earns basically nothing because of inflation (less than 10% roi). Especially for Equity Fund which is basically traded in stocks, the yield is indeed substantial during bull market but you need longer waiting time till the market cyclically recovers during bear market and still comparatively enjoys bigger margin.

    We need to widely educate everyone of this better vehicle to help the investing pinoys gain more and roll over such gain for more creative investments for the good of our economy. Problem seems to be that since this kind of investment is not being clearly marketed even by bank employees, we are naturally afraid of things we don’t understand in the first place. For me, this investment is just like the tv set. Its complicated inside but outside its easy to operate. The analytical ones wont dare until its not clear to them. But only few risk takers are able to enjoy the fruits of this kind of investment. We can be of help to stimulate healthy discussion and demystify things out.

  14. hello fitz. thank ypu fpr this well explained article. anyway, i’m still learning about investments flow and such terminologies. i am new and willing to learn. can u give me some tips to invests as a beginner on this field. and like how much should i put in and where is the best to invest it. THANKS!!!….

  15. Fitz,

    which do you think is good for short term and long term? Balanced Fund or Equity Fund?

  16. @tweeteriyaki
    As a beginning investor, I encourage that you first practice saving and building an emergency fund. Then invest a portion of your emergency fund in a time deposit.

    After that, it will all depend on your situation, but I always advise that one should invest small amounts regularly for long periods.

    Balanced funds are good for medium term, while Equity is always long term. For short term, try Money Market or other moderately conservative funds.

  17. Fitz,

    I’ve been a lurker of your blog for quite some time now.

    The wife and I decided to start investing and we already have an emergency fund on our savings account and a little extra.

    Do we really need to put a portion of it on a time deposit or can we go straight on UITF or Mutual Funds. I would appreciate it if you could explain it as well, as I am still learning the ins and out of investment.

    Also, any good book you can recommend?

    Thanks in advance.

  18. Hi Fitz! Hi everyone!

    Maybe I could help others here by sharing my experience.

    After saving up for my emergency fund, I went straight to investing in UITFs – specifically Equity Fund. Investing is really easy coz you do not have to manage anything. Just make sure that the money you will place in this kind of fund is money that you won’t be needing for the short term so that you will optimize your gains from it.

    What is important is you start investing now, so you can ride out the ups and downs of the market. So far, since september 2011, my equity funds are now up by 18%, if I decide to withdraw today.

  19. Hi ada,

    Thanks for replying. I managed to find the answer on my question myself πŸ™‚

    If I may answer my own question re: time deposits
    The reason Fitz suggested to put a portion of the emergency fund to time deposit is because, it will be a waste to keep such amount on savings account, wherein it is only earning cents. Time deposit doesn’t have the interest rate to cover the inflation but it’s better than a normal savings account and you can withdraw it anytime the need arise.

    What confused me before was the thought that instead of putting a portion of my emergency fund to time deposit, I will put it directly to investment. I didn’t realize before that I should not touch my emergency fund, and the best way to keep it while earning a little more the savings account is through time deposits.

    Fitz – now for my other question. If I have 50k in excess of my emergency fund, should I put it all in UITF in one go then just add say 10k per month to it or should I already start diversifying and invest small portions on different investment funds and different banks?


  20. @ynos
    Sorry for the late reply, but it’s good that you found the answer to your first question.

    With your second concern, my answer would be to first define your investment objective and then find the right product that will fulfill that goal.

    Assuming that this is for your retirement, then I’d suggest doing cost averaging and investing a fixed small amount of that P50k regularly on one product, probably an equity fund (UITF or mutual fund).

    For UITF, there are banks that offer small starting investments (around P10k) and even smaller additional contributions (around P1k) to an existing investment. Moreover, I know both BPI and BDO has a service that allow you to automatically do this.

    For BPI, inquire about the regular subscription plan. For BDO, there’s the easy investment plan.

    Anwyay, my advise is don’t do it in one go because among other things, cost averaging makes you more aware of the need to regularly invest over your lifetime.

    As for diversification, I suggest that you invest that 50k first on one product, then continue saving and when you have another 50k, then that’s the time you invest in a new investment product.

    Thank you for sharing your story. 18% is incredible! πŸ˜€

  21. Hi Fitz!

    Now that I mentioned 18% gain, should I cash in on those UITFs now, especially since the market is very volatile these days? then I could re-invest the same through cost averaging.

  22. Hi ada, did you do a one time investment? If so, then I’d advise yes, redeem them, then do cost averaging. But if it’s already a cost averaging scheme, then just leave it as it is.

    Please note that this is just my personal recommendation and should not be taken as a professional financial advise. Thank you.

  23. Thanks Fitz,

    Will going to do as you suggest. I’m just weighing my options at the moment. I already inquired with BPI, will try to inquire with BDO sometime this week.

    Thanks again.

  24. hi guys,

    fitz said it right. before you invest, try to think first what your goal is. all investments should have accompanying goals/purposes or else you would not do it “diligently”. also remember to always have an emergency fund. it should be at least equal to 6 mos worth of salary. UITF is good. i axally have the balanced fund with BDO. Variable Life is even better, for me that is. i have an equity fund with Philamlife and another balanced fund with Sunlife. also, dont be afraid to invest small amounts at first. what is important is you started investing. whatever you invest in, it should have the 4 cornerstones to be solid. Safety.Growth.Tax advantaged.Protection.

  25. and pahabol ko lang po….

    world inflation is hovering around 5-6% annually…

    So?…never put your money in a financial instrument lower than that..or else bababa ung purchasing power ng pera mo.

    just my 5 cents worth.

  26. thank you for this article.. now i have an idea how does it works. it really helps me on my job since im just new in this career.can you help me how will i handle this questions if someone ask you what is the minimum rate or interest? and this invesment is not guaranteed.. thank you

  27. Hi Fitz,

    Is compounding applicable to UITF/Mutual Funds? If so, how?

    I am thinking, If I am already doing cost averaging, should I just left my money on a UITF/Mutual Fund or should I redeem a portion amounting to the interest and re-invest them from time to time?


  28. Hi ynos, theoretically speaking compounding does not happen in UITF / Mutual Fund investments if you strictly do cost averaging.

    To compound your income, you have to be an active investor – which means doing what you suggested, redeeming your interest income and re-investing it.

    Personally, I don’t do this because I don’t want to dilute my price average – plus, instead of reinvesting my interest income – I usually just invest more money. πŸ˜€

  29. Hi Fitz. Thanks for your advice, now I have already started with investing.

    Next, for diversification, I would like to invest in either stock market or mutual fund. Which of the 2 do you recommend?

    If in stock market, is citiseconline reliable? Any other reco?

    If mutual fund, do you recommend fami?

    Will wait for your reply.

    Thanks again.

  30. Hi Richie, Citiseconline is reliable for me, they’re actually my stock broker. And one thing I like about them is their EIP program. If you need help, you can email me and I’ll give you the contact number of my account manager there.

    As for FAMI, I also believe they’re reliable. A couple of friends have investments with them which have been doing well, last time I asked.

    Choosing either one would be a good decision in my opinion. Or if you have the funds, why not just invest in both. πŸ˜€

  31. Thanks Fitz for the quick reply.

    Yes please, I’d like to be enlightened some more on COL’s EIP. Maybe your acct mgr can help me. You can give my email ad.

    If I can only afford one between stock market and mutual fund now, which would you recommend for me? (I already have a uitf investment. I plan to invest 5k per month for 5yrs or more.)

    Will wait for your advice Fitz. Thanks again.

  32. Hi ,Fitz, Iam an avid reader of your blog Ready to be Rich.I did open an EIP account recently with BDO(cost averaging) and still learning with the help of your articles.Thank you and still waiting for more UITF blogs.I will open an account with CITISECONLINE,I understand that you have an account manager at CITISEC ,if you could refer my application to him,much easier for me to have it done ,thank you again and will seriously invest and take any risk than not taking any risk at all.

  33. Hi Fitz. Resending…waiting for your reply please…

    Richie on August 8th, 2012 at 8:58 pm

    Thanks Fitz for the quick reply.
    Yes please, I’d like to be enlightened some more on COL’s EIP. Maybe your acct mgr can help me. You can give my email ad.

    If I can only afford one between stock market and mutual fund now, which would you recommend for me? (I already have a uitf investment. I plan to invest 5k per month for 5yrs or more.)
    Will wait for your advice Fitz. Thanks again.

  34. hello. i just wanna ask kung ano po ang usual cases/problems regarding investing in uitf? what would be the type of uitf product for you? thank you! God bless.

  35. I’ve been reading alot of your post for a couple of weeks now. I just want to say thank you for explaining it well. More power to you.

  36. Hi Fritz,

    I am new to this and trying to understand and I read a lot about this and need more clarification about Cost-Averaging.. What is cost averaging means e.g. from BDO EIP?

    They have Balanced Fund with minimum investment of 10,000 and then 1000 per month EIP. Does it mean the 1000 will earn as well? Could you help to explain?

    Thank you.

  37. Hi Jeffrey, you need P10,000 to open an account, but you only need P1,000 to add to that investment via EIP.

    Yes, that P1,000 already has the potential to earn… but by BDO policy, you will only be able to get your investment certificate every P!0,000 worth of units.

    When you do, you’ll notice that the unit prices are adjusted according to the time when each P1,000 was deducted.

  38. Thank you Fritz. But 10,000 to open an account is already the invested money, isn’t it? So it is already worth of 10,000 units?

    Also, if I earn, it means that my units will accumulate and if I loose my units will loose/decrease as well? And then after a while, if I accumulated lot of units, I can redeem it and the price is based on theNAVpu on that day when i redeem?

    Is that how it works?

    Thank you.

  39. Thank you Fritz. But 10,000 to open an account is already the invested money, isn’t it? So it is already worth of 10,000 units (let say NAVpu is 1.00)?

    Also, if I earn, it means that my units will accumulate and if I loose my units will loose/decrease as well? And then after a while, if I accumulated lot of units, I can redeem it and the price is based on theNAVpu on that day when i redeem?

    How does it affect daily NAVpu if I will only know if I loose or earn when I redeem my units?

    Is that how it works?

  40. thank you for a very informative article. I’m in my early 20s and thinking of starting to invest, but I have no idea how!

  41. Hi Jeffery.

    Yes, if the NAVPU is 1.00, then investing P10,000 means you will receive 10,000 units.

    Over time, the value of each unit will increase and decrease. But as an investor, you will always have 10,000 units – that will not change.

    Let’s say after a year, the NAVPU has become 1.20. Then that means, when you redeem your money, the exchange rate that will be applied to your 10,000 units will be 1.20 – which means you will receive P12,000.

    NAVPU changes everyday. When you invest (buy units), your certificate will tell you the price at which you bought.

    Then you simply have to ask the bank the current NAVPU price, if it’s higher than the price at which you bought it, then you’ll make money.

    If it’s less than that, then you simply have to wait until it does so you won’t have to lose money.

    The “hard part” is really the waiting, because some people fail to save an emergency fund and they need to redeem their units at a loss because they need money.

    Historically, UITFs earn money in the long run. Indeed, there will be bad times, when prices are down. But eventually, they all recover after a year or two.

    That’s also one reason why you should never invest in one go. And just distribute your money and invest small amounts over a long period of time, so you can take advantage of cost averaging.

  42. Thanks Fitz. I just sent my application to BDO, with initial of Php10,000 and monthly of php2,000 to Equity Fund as I plan to take the money when I back to the Philippines, maybe in 5 or 10 years or worst case in 3 years. Do you think its small amount? Or if I decide to increase the amount for EIP eventually, is it advisable?

    Also I know that BDO issues only COP if thevalue reaches 10,000. So if I have 2,000 monthly and it reaches 10,000 does it mean I will get another COP. And then when I reach again another 10,000 it will be another COP? So Im getting multiple COP?

    Thank you.

  43. Hi Jeffery. There is no small or big amount when it comes to investing, only the amount which you can afford comfortably. πŸ˜€

    Of course, when money is good, you can increase that amount. And when things are tight, you can choose to decrease it.

    And yes, you’ll get multiple COPs. If you’re out of the country, just advise BDO to safe keep it.

    Lastly, congratulations on being an investor!

  44. Medyo mahal po ngayon ang NAVpu Equity Fund. Ok lang po ba na nag invest na ko ngayon? Kasi medyo worried langako dahil mas maganda sana bumili ng units kapag mas mababa ang market performance po di ba?

    Which one is better, once a month or twice a month EIP?


  45. Hi Jeffrey. For me, once a month is good enough. And just invest small amounts, so you can cost average your investment.

    Actually, in one UITF of mine, I only invest quarterly.

    The most important thing to remember is to invest regularly and invest small fixed amounts. How frequent you invest is not so important, as long as you do it consistently.

    Don’t worry about the price. For now, sa tingin mo “medyo mahal”, pero come back after 6 months, you’ll see na “mas mahal” pa sha – so sayang yung time na naghintay ka bumaba yung price.

    Of course, NAVpu prices will go up and down. If you have the knowledge and skills to time the market, then you should use it to earn more from your investments.

    But if you’d rather invest passively, and focus more on other things, then your safest option is to do cost averaging and start now, and invest regularly, over a loooong period of time.

  46. Kung mag invest din kaya ako sa BPI Balanced Fund naman or maybe BDO again Balance Fund naman? Is it good idea? Thank you.

  47. hi fitz…….you really are good in financing
    anu ba ibig sabhin ng cost averaging and how to do it..para ma anticipate mo when to redeem your uitf or not.

  48. greetings mr. fitz:

    1. From time to time I’m checking the navpu between BDO & Metrobank’s Dollar Money Market Fund from and with their respective websites. In Oct 31 2012, The YTD Return% of BDO=1.7168% & Metro=1.6386%
    1.1. So does it mean that BDO performed better?
    1.2. The Navpu of BDO = $130.302 & Metro = $1.25, Why so different? Please explain…I’m confused on how to interpret this…

    2. Is it better to invest larger amounts to LOW Risk Funds (6months to 1yr maturity) and smaller amounts to Aggressive Funds(5yrs)? Assuming you let both of your invest stay for 5yrs…

    3. I’m trying to compare BDO, BPI, Metrobank Dollar UITFs, all of them seem to be doing great, since It’s my first time to invest, I would need extra support and guidance, So in your experience how would rate these 3 banks, in terms of performance, service, etc.

    Thank you and hope you would enlighten me more.

  49. @Jeffery
    If you have the budget, then I would say that you go and invest.

    You can read more about cost averaging here. I discussed the stock market here, but it also applies to UITF and mutual funds.

    1.1 yes that means that BDO performed better, but remember that past performance is not an indicative of future performance

    1.2 each fund has a different price, depending on how old the fund is and where it is invested, lower priced funds are usually still young

    my suggestion is not to compare the prices, but the historical performance, fund terms, convenience and customer service instead

    2. that depends on your investment objective, if you’re planning not to use the money for five years, it’s better to put it in moderate to high risk funds… but always do small amounts, in constant periods, over a long period of time

    if you need to diversify, invest half in a moderate-risk fund, and half in a high-risk fund

    for 1 year or less maturity, it’s better to put it in a low-risk fund or even a time deposit

    3. I’m biased towards BPI and BDO because I have UITF investments in both banks… but my advise is to put it in a bank where it would be convenient for you to go to, so that way, you won’t get lazy to go to the bank every month or so to invest

  50. hi fitz,

    plan din namin maglagay ni mrs sa bdo and bpi (UITF) or first metro (MF) for our retirement. pero medyo confuse kami at hindi namin sure kung ano mas maganda. long term naman ang plan namin so mga 15-20 years. when it comes to higher return ano po ba ang mas okay UITF or mutual fund?

    thank you and more power!

  51. Hi Capt. From personal observation, pareho lang ang performance ng UITFs and Mutual Funds in the long-term – so walang “mas maganda” sa kanila.

    My personal suggestion – invest in both. Hindi naman kailangan pumili ng isa lang. And invest only small amounts over a long period of time.

    For example, if you have P100,000. Invest P50,000 sa UITF, and the other P50,000 sa MF.

    Pero don’t do it in one go. Invest P5,000 a month for 10 months sa UITF. And do the same sa MF.

    Ask for the minimum amount required to invest and just work on that amount, not more. If monthly is too hard, you can also do it every two months only, or quarterly.

    Then hopefully, after mo ma-invest yung initial funds mo, you have more money saved so you can continue investing and you can continue to do so for many years.

  52. Hi Fitz, quick question. Sa Mutual Fund ba or UITF, for example I do cost averaging let say 2k per month then eventually yung NAV or NAVPU naging let say 2200, ibig sabihin yung 2k ko hindi maiinvest hanggang magdagdag ako? Then I have to increase it regularly kapag yung monthly ko ay di kaya bumili ng isang unit? Or I can purchase in fraction?

  53. Hi Jeffrey. When that happens, what you can do is to start on a new cost averaging investment.

    Find another fund that can accommodate your P2k per month budget with NAV value low enough that it can allow you to cost average for several years.

    For the first fund – you can either redeem it, or just let it “sleep” for awhile.

    Redeem it if you want to “cash in on your profits”, then reinvest the money again (cost average in the same fund at a higher value, say P10k a month; or start cost averaging in another fund – both are good options, choose whichever meets your investment objectives).

    But if you believe the NAV will continue to increase and you don’t need the money anyway, then you can just let it grow some more.

  54. Thank you Fitz, so If I want to keep it for the same fund, I have to increase my monthly? Is this what you saying? And I cant buy in fraction?

  55. Greetings Mr. Fitz:

    1. Clarification: When you said “…but always do small amounts, in constant periods, over a long period of time” you mean that I should regularly(weekly,monthly,quarterly,annually whatever period) add additional minimum amount to my existing invested amount regardless of if the NAVPU was high or low at that particular time.

    For example if i invested $500 in BPI Global Equity Fund, that means I should regularly increase that amount by additional capital of $300 or more even if the NAVPU at that time was down.

    2. Performance: whether the fund reached is maturity period or not but have performed poorly(approx.for 1 week or I have a loss) I should redeem my capital and re-invest in another which is performing much better.

    3. Compounded Interest: does the capital invested in the UITFs earn interest and are being compounded? From my understanding whatever the value of the Navpu when you redeem your capital that would be your gain,so will my capital earn extra interest aside from the Navpu? BDO said their dollar UITFs are automatic compounding the interest????

    Thank you very much, and hope for your continued support.

  56. @Jeffery
    Yes, you have to increase your monthly if you want to invest in the same fund. Also, it depends on the fund but most of them don’t allow fractional units.

    1. Yes, the amount should be constant, the minimum required is recommended – and you should buy regardless if the NAVPU is up or down. That’s how cost averaging works.

    In your example, if the minimum additional capital required is $300, then you should buy maximum units that your $300 will allow every time (no more, no less) – regardless if the price is up or down.

    You’ll get to buy more units if the price is down, you buy less units when the price is up. In the long run, the average price is kept low because of cost averaging and you can make money if the price goes sideways because you are not timing the market.

    2. Never redeem just because it’s performing poorly. Be patient and try to wait for the maturity period to come. The market usually goes up and down month-in and month-out, but it’s upward over the long-term through several years.

    3. You are right, to my knowledge, UITFs don’t compound interest. But I’m not sure if banks have started offering products that do.

    What’s that specific BDO dollar UITF? I’ll ask my contact in BDO about it so we can get clarifications.

  57. Thanks Fitz. Ok lang din ba kung mas mataas ang allocation ko for cost averaging sa Equity kesa sa Bonds? Say 3500 sa Equity and then 2000 sa Bonds, is that ok or it is not balancing the portfolio? Thanks…

  58. Hi Jeffrey. Personally, okay lang as long as you can sustain cost averaging on both investments for a long period of time.

    Pero you should always consider your total portfolio and be sure you don’t have too much high-risk investments against moderate-risk investments.

    But in the end, it’s still your decision – as long as you are comfortable with the risk you’re taking, then I say it’s all good. πŸ˜€

  59. Thanks Fitz… Last question. If I want to earn 500k in 1 year, where should I invest and how much monthly I need to put?

    Also where can I find the growth % of EPS of a company, let say JFC? I wanna know their EPS growth % for the past years.


  60. Greeting Mr. Fitz:

    1. This is the explanation i got from BDO regarding the compounding of interest, where I got confused:

    BDO Reply:
    Thus, If you invested $10,000 for each fund last July 31, 2011, the value of your investments as of July 31, 2012 would have been:

    BDO Dollar Money Market Fund USD 10,207
    BDO Dollar Bond Fund USD 10,571
    BDO Medium Term Dollar Bond Fund USD 10,862

    Regarding your second question, we are happy to inform you that all the three BDO Dollar UITFs use the principle of compounding.

    For your third question: all three dollar UITFs enjoy the same tax rates. In terms of risk profile, the most conservative (least volatile) is the BDO DMMF while the BDO MTDBF is the most aggressive (most volatile)The main differences are the following:


    Modified Duration Policy >1 Yr 1-3 Yr 3-5 Ys
    NAVPU Computation 4:00PM 7:00 PM 7:00 PM
    Early Redemption Fee of PA 0.50% 0.50% 1%
    Trust Fee – per anum 0.50% 0.75% 1%
    Settlement Period Same Day T+3 T+3

    2. What factors would cause the poor performance of UITF?
    3. Will the strength of Dollar, Peso, Euro have an effect on the performance of DOLLAR UITFs?
    4. Is UITFs transferable? I checked the application forms and did not find any clause for beneficiary, so what would happen to my investment in case of sudden death (which i hope doesn’t happen).
    The banks told me that it will be included in my state of property.
    I’m sorry Mr. Fitz, i Didn’t get it? Because what if I was working abroad and it happened over there, without my family knowing that I made such investments, will they be notified by the bank.
    5. Lastly, please share if you have knowledge about Living Trust Funds?

    Thank you very much and I appreciate very much your golden advices.

    Pahabol: Mr. Fitz are you also an investor of Group Buying Sites?
    I checked your blog and videos of it, and found it very interesting. But I hope they would also include basic commodities in their sales like rice, LPG, gasoline, milk, sugar, medicines, etc. because before when i was working with the Phil. Navy and Army, they used this same method of group buying to get big discounts since they were buying large quantities which later on evolved in military commissaries which eventually some corrupt officials took advantage and sold the items outside the military to gain profit. Anyway I hope they consider because most of the sites offer the same products and their idea or concept I think came from Divisoria shopping. Thank you, just a suggestion.

  61. Hi Fitz, what financial investment instruments have compound interest that is great to invest in? Can you suggest? Thanks a lot!

  62. I have a question. I believe the BPI RSP scheme on UITFs is for cost averaging. If I already accumulated PhP10,000 worth of units, a COP will be given to me indicating the value my units are bought right?

    To make my question clear, here’s the scenario: Php1000 will be deducted for my RSP on month 1 at 1.0 NAV, so October will be month 10 meaning I already have another Php10,000 worth of units. For month 10, NAVpu is 1.10. What value will be considered for that additional Php10000, the 1.00 or 1.10 NAVpu

    Thank you sir and more power to your blog

  63. Hi Marissa, it will be the average NAVpu of the units. Let’s say at month 1 until month 9, NAV is 1.00, then at month 10, NAV became 1.10.

    Your COP will say you have invested P10,000 which represents 9,909.09 units (P9,000 divided by 1.0 for months 1-9, plus P1,000 divided by 1.10 for month 10).

    At the time of issue, the value of that COP will be stated, which will be P10,900 (9,909.09 units multiplied by current NAVpu of 1.10)

    The most important number on the COP is the units you own (9,909.09 units), because if you want to know how you’re investment is doing, you just multiply that by the current NAVpu (which changes everyday).

    You can ignore the value of the COP stated (P10,900), and just take note how much you have already invested (P10,000).

    Hope I was clear with my explanation.

  64. May I ask, if the NAVPU is low that is when we buy UITF and when NAVPU is high that is when to sell right? It’s to maximize your money just like the stock market if I’m correct. As of date, the stock market is high therefore the NAVPU must be high too. Is it advisable to buy UITFs now? I don’t want to be on the tip of the rising curve just to find out that the philippine economy drops in 3 years. Rather than earning I lose tons of money. Please enlighten me. Many thanks.

  65. Hi kumirei… nobody can ever predict where the market will go, and as a passive investor, we all have “better” things to do than to time the market, unless this is a career you want to pursue.

    So my advise, invest only a small amount, but do it regularly over a long period of time, ie P1,000 to P5,000 monthly for the next three years or more.

    This will cost average your investments and lessen your risks.

  66. Mr. Fitz:

    Is COP print-out copy for free ?
    May you collect this COP once a month ?

    Thank you.


  67. Hi java,

    It should be free and you should get it every time you make a placement in the fund. Do ask your bank about their policies regarding this as they might have additional terms for getting a copy of the COP.

  68. Hello Fitz,

    This site of yours is really helpful specially to those who are new to this industry like me. I just opened a BPI Equity Value Fund with the minimum amt of 10k and it went P12 lesser than the minimum amount required. should i cover that P12 by adding 1k(minimum transaction)? If yes, how will i do it. I have BPI EOL account, but i don’t know how to transfer funds.

  69. hello sir, thankyou for the clear illustrations, I am considering of investing UITF but I need to know what are the other banks offering UITF? What are the requirements? thank you so much

  70. hello sir, thanks for this article, thank you for sharing your thoughts, I been searching for some idea about UITF, and now I have much more clear idea about it,thanks..and God bless.

  71. Because this article is so good, i have bookmarked it for later reference. I’m new to investing and I’m taking in more knowledge so I won’t hesitate if an opportunity comes.

  72. Making money from funds is like planting rice but there is a crucial difference.

    You plant 10 sacks of palay, eventually you harvest say 20 sacks of palay; so you sell 10 of the 20 harvested sacks, and again plant 10 sacks.

    That procedure can go on and on, just that you put in labor and water and fertilizer and pesticide, and of course prayer that no typhoon will wipe out your palay prior to harvest time.

    What is the difference with making money from funds?

    The difference consists in the fact that when you invest 10,000.00 pesos in a fund, you are buying 10,000.00 pesos worth of shares in a mutual fund or units in a uitf fund, which shares or units let us say come to 10,000, at 1.00 peso per share or unit.

    Now, when your 10,000.00 pesos has grown to be 20,000.00 pesos, you redeem the whole 20,000.00 pesos, but then keep 10,000.00 pesos and re-invest the other 10,000.00 pesos in the same fund.

    But take notice however that at this time your 10,000.00 pesos will not buy 10,000 shares or units, but only 5,000 shares or units, of the same fund.

    Now, if you continue in that procedure, eventually you will end up with buying only very little shares or units of the same fund; so the money you make continually becomes lesser and lesser.

    Think about it.

    That is the way I see it.

    What is the remedy?

    Think about the remedy, I am also thinking about the remedy.

    Of course you can prefer not to redeem your fund until many years later and the fund has grown huge in monetary worth, and then you redeem it once, as for example you are going into retirement and can use that huge money from your original investment of 10,000.00 pesos.

    But I am talking about making regular money like regular income from funds.

    Marius de Jess

  73. Hi Fitz,

    Thanks for making this blog. Very informative. One question lang po. I am an OFW in Brunei and Im planning to open a UITF account in BDO. So, how long should it take should I decide to open a UITF account? It is as easy as opening a bank account that everything can be done in a day? I’ll be home soon for 3 weeks only. I hope everything can be done before I leave. Thank you po.

  74. Hi Benjamin. Yes, it will just take a day to open a UITF account. I suggest you open a BDO EIP so it will be automatic also. πŸ˜€

  75. Good day Fitz

    If I have a savings of P100,000 now which I am willing to invest in UITF – equity fund
    for 3 to 5 years, will it be more risky if I put everthing outright in one day rather than investing in small amounts for long period?


  76. Hi Judith, it will be more risky. I suggest that you invest it in small amounts instead. P3,000 every month for 3 years, would be my personal strategy.

  77. Hello Fitz, i invested already in UITF just a few months ago, bdo equity and bdo peso balanced. Unfortunately as i checked it my capital is decreasing. What would you recommend/suggest to me? Knowing that the US economy is getting better. Would i withdraw it or not? My fear is that my capital might lose πŸ™

    Many thanks.

  78. Hi Fitz! When I applied for a UITF last year, it wasn’t under an RSP program. Ngayon gusto ko na siyang ilagay under RSP. Now… the info via BPI is very conflicting and the BPI hotline nor the branch is helping me resolve anything.

    The website says that I can place additional 1,000 kung meron na akong initial na 10,000 which I already have. I just have to present 2 IDs sa branch ko so they can put it under RSP. Nung pumunta ako kanina, the teller totally told me another thing.

    TELLER: You have to add 5,000 so they can add 1,000 per month. (This procedure doesn’t make any sense to me. Kasi para saan pa yung sinabi nilang 1,000 ang minimum transaction fee for RSP?) If I want to add 1,000 myself. I should click SUBSCRIBE beside my UITF option and input 1,000.

    Now I tried that, funny enough… the website asked me to deposit 10,000 naman!

    Tinawagan ko naman yung 89-100 and the operator told me na pwede yung what I saw in the website and whatever the teller is telling me doesn’t make any sense.

    My questions: 1. Sino sa dalawa yung tama? 2. I don’t have extra 10,000 and how I wish the 1,000 addition is TRUE! If I want to avail that, what do I do and what do I tell the teller?

    BTW, my branch’s phone number is NOT WORKING! I even filed a complaint because of their non-working numbers.

  79. Hi Fitz,

    I have invested approximately P200K in BDO Fixed Income Fund (FIF) and another P200K in BDO Balanced Fund (BF) UITF. These were placed last May 24 only after redeeming the said investments a week prior and re-investing these, together with the interest, in a new FIF and BF UITFs.

    Given that the NAVPUs of these UITFs have been signficantly declining as the market has now entered the bear situation, what do you think would be the best thing to do with these investments?

    Thank you for your kind advise.

  80. hi Mr. Fitz, I am planning to invest the min amount only, my friend suggested BPI but I already have an account with BDO, which one has the best offer? thanks and more power to you!

  81. Hi Min. None is better, both are great investments. So personally, I say you should choose the bank where there are friendlier staff and more convenient for you to go to because this will encourage you to invest regularly. πŸ˜€

  82. hi Mr. Fitz, thank you I thought there are advantages/disadvantages in either of the two bank for UITF. I’ll then go for BDOs UITF since i can go there even after office. More Power to you. thanks for sharing πŸ™‚

  83. Hi Fitz,

    I like your blog and I am a newbie investor. I already invested in UITF worth Php 5,000 as a start just this week at PNB Filipino Global. I just checked my investment profile and I have a loss of -4.67. Should I worry about this?

    I have an interest in investing and I am looking for a mentor to guide me on how to invest wisely and I’m glad to find someone like you who is very much willing to assist. I have a plan to diversify and venture into another investment. Would you be able to assist me and guide me to my next venture?

    Looking forward to hear from you.

    Thank you,


  84. Hi Gizelle,

    Investments are long-term endeavors. Ask PNB what is the risk profile of the UITF that you invested in.

    If it’s low-risk, then it should be positive after a year. If moderate-risk, it will take 3-5 years before you see good gains on it. And lastly, if it’s high-risk, then forget about your money and just come back to it after 5 years.

    Lastly, before you diversify and invest in another investment, you should first define your investment objectives… ask yourself, why are you investing? What are the things that you plan to buy or use the money for?

    Answering that will help you determine the right investments to put your money in.

  85. Hi Fitz,

    Regarding investing in UITF, I would like to know if there’s a minimum months/years wherein you need to stay invested for this one? In example, can i invest today then redeem it probably in two or three months. Please enlighten me. Many thanks.


  86. Hi Fitz,

    Thank you for your reply. My PNB UITF is a moderate risk type. By the way if in case I would like to add the gain of my UITF to my principal/ capital how would I do that? Do I have to withdraw my Principal and reinvest on the same UITF or it would just automatically add up to my principal?

  87. Hi,

    Tanong ko lng po kung transferable ang UITF ng BDO? Meron kc ako pero naka pangalan sa friend ko na nagwowork sa BDO kc dito po ako sa abroad ngayon. Pag uwi ko pwde ba ung UITF account na un maging AND/OR sa aming dalawa? Or transfer sa name ko? Thank you. Hope you can answer my question. πŸ™‚

  88. Hi Fitz,

    I would like to know if my understanding of this statement of yours is correct: “So let’s say after one year, the NAVPU has become P1.65. If you redeem your investment at this point, then you will receive P33,000 – which means you just earned P3,000 by investing P30,000 for one year in the UITF.”

    Does this mean I won’t have other deductions (ex: sales tax, witholding tax) on my gains for UITFs in all banks and that all types of taxes / liabilities to the govt is already covered within the NAVPU daily rates? I’ve been seeing conflicting information on this wherein some financial planning sites are saying that there is an additional fee subtracted to your UITF redemption.

    Can you please shed light on this? Thanks.

  89. Hi fritz,

    I also suggest manulife, the variable life where u can invest at the same time u are insured. Ur money is being invested in a diversified range & spread of investments like bonds & stocks etc… u can chk guys r website..

    Anyway, fritz thanks for this info I have learned.

  90. Hi Fitz,

    Thanks for this awesome article. It made the blurry part of UITF clear to me but I was interested in what you’ve said in one of the reply.

    Quote: Also, rather than investing all your extra money in one go, it’s better to do small, same-amount, regular-period investments (P1,000 every month for example). This strategy is called cost-averaging – which is good to do for long-term investing.

    1) What exactly do you mean by this? Can we just add small amounts to that same investment we have? Or open another new investment? the mininum investment for BPI for example is 10K.
    2)If we redeem, is it only the earnings you redeem or the entire investment?
    3) After redeeming, do you need to reapply to the bank if you want to invest again? Does redeeming means closing your investment?

    Thank you for you informative blog. Cheers!

  91. and by the way, how will the length of investment period affect the earnings in your investment? I have read an example below from pinoyexchange blog but I don’t know how they compute the 30 days earnings. Please give a light…

    Initial investement: P100,000
    Buying price: 1031.2911
    # of units purchased: 96.965832
    Selling price: 1032
    Cash-out: P100,068.74

    so you earned P68.74 in 30 days. so that is 0.068% of your initial investment in 30 days.

  92. Hi Franky,

    1. Yes, you can add a smaller amount than the required opening amount, if you already have existing investments. Ask the bank how much is the minimum additional investment.

    2. When you redeem, you are selling back your units… so it’s the entire investment, not just the gains.

    3. Yes, you’ll technically be opening a new investment after you redeem. So it’s useless to redeem then immediately invest again. Which means only redeem when you need the money. Some banks also allow partial redemption, so you don’t have to close the entire account.

    The paper gains of the investment depends on what type of UITF it is. Low-risk funds can give you 4% pa, moderate-risk at 8% pa, and high-risk at 12% pa. These are just estimates, based on historical prices.

  93. Hi Fritz,

    How do we benefit from the power of compounding if we don’t sell our stocks/UITF shares?

    Is it an automatic compounding even if we dont sell, as long as we put every month through cost averaging?

  94. Hi Fitz,

    Thank you so much for the reply sorry but i’m really new to this UITF investment. Last question:

    So, since the prices may go high or low, what is the difference if I’ll redeem tomorrow with the NavPu higher compared to if I’ll redeem next 5 years if the navpu is much lower? does time have something to do with this? I mean will my investment gain much return just because i put it there in a longer period of time, or it doesn’t matter when you redeem as long as the selling navpu is higher than the selling navpu.

    I said this because I tried using the BDO return calculator and I found out that it could be that you have higher return in just few months than you have in find years depending on the NavPu selling and buying. Am I right? Thanks again. Cheers!

    Last last last. Is it good to start investing this month? Should I invest when the Navpu is Lower or when it is HIgher? which is which? Thanks again…

  95. @Jeffrey
    There’s no compounding in stocks and pooled fund investments (UITFs and mutual funds). Compounding, technically only happens in time deposit investments.

    Also, cost averaging is an investment strategy that helps you minimize your paper losses. It also doesn’t make your investment compound.

    The reason why you shouldn’t sell your shares is because these investments will eventually grow.

    Let’s say one share of a UITF is P100, and it becomes P200 after 5 years. Then your investment has doubled in a span of 5 years

    People often express this in terms of annual rate of return, which is 14.87% – which means your investment has “compounded annually” at a rate of 14.87%.

    This is done to make people realize that stocks and pooled funds are better than time deposits, which typically compound annually at only 4% or less.


    The primary rule is to always sell your shares when the NAVPU is higher than the price when you bought it.

    If you invested when the NAVPU is P100, then you should sell it when the NAVPU is higher than P100.

    Yes, it goes up and down – but in the long-term, it just goes up. That’s why it’s always a good time to invest.

    If you’re planning to “ride the market” – that is buy when it is low, sell when it goes up, then buy again when it goes down. Then you need to study fundamental, technical and market sentiment analysis.

    In other words, you need to have the skills of a financial analyst. Watch Bloomberg and read through the business section of newspapers everyday. If doing these excites you, then you have great potential to become a good financial analyst.

    Lastly, here are a couple of articles you might want to read:

    1. 8 Charts That All Philippine Stock Market Investors Should See
    2. How Do You Know If It’s A Good Time To Invest?

  96. But they said to invest early to get power of compounding and when they retire they get millions. So im confused. What products have compounding?

  97. Hi Fitz,

    I have applied to EIP a month ago, debiting 2k from my account every two months. I have purchased 10,000 worth of units when I applied. I also applied it on Online Banking so that I can see how it goes. It’s been a month already and I still haven’t seen the additional 2k investment which was debited from my account. May I know if this is normal? Does it mean that I need to wait for five months to see that my additional 10k reflects on my Online account?

    Thank you in advance.

  98. Huck,

    Please go to the BDO branch and confirm that you are enrolled with the EIP. This should not happen. The 2k should be debited from your account regularly and reflected in your account, and you should receive a Certificate of Participation (COP) every 10k.

    I think the problem here is the 2k every two months, as far as I know, you can only do monthly with EIP. If this is the case, then I suggest you invest 1k every month instead.

    All the best,

  99. Sir, tanung ko lang po hangang kaylan ako kaylangan mag-invest ng 1k per month or lifetime na ito? Tanung ko na din kung as for now ano po ba ang mga leading bank na nag-ooffer ng UITF? Thanks

  100. Fitz,

    Is it okay if you do partial redemption on your UITF’s? BPI has this option, would you advise doing this just getting the earnings and keeping the principal amount invested?



  101. @four
    Mag-invest ka hanggang sa makuha mo yung gusto mong amount. This already depends on your investment objective. Also, there’s no best bank, so just go to where you already have an account and ask for their UITF products.

    This will depend on why you are doing partial redemption. The best reason is because you will be using the money, or you will be investing it in a better instrument.

    If your sole reason is because you just want to protect your earnings, then that’s okay too but know that you’re deferring on future possible earnings because of this.

    I guess the question you have to answer is what are you going to do with the money from your partial redemption? That will dictate if it’s a good idea or not. πŸ˜€

  102. Hello, having read your blogs and articles especially about investing really shed more light of understanding on my quest to know the how’s and what’s of investing. I am more interested in uitf simply because I am comfortable with this kind of investment vehhicle. I have fears before I get to learn and read and read more facts about it. I used to believe the compounding principle is applied to this kind of investment but the more I studied it I realized it is not. And thanks to your blog here where I get to read comments from your readers and your very informative reply that I learn more facts. I have an existing UITF account under the eip at BDO,peso fixed income fund. My account has spin off to 10k and been regularly contributing monthly of 1k. I have a loss of 52p as of today. I monitored my account thru my bdo online banking. My questio is do u think given a year or two the negative will be a positive? Is there a possibility that this kind of investment – low risk will double the initial investment in 3 yrs or more. Will it be wise decision if ever I let the fund stay there for a long period of time say 10 yrs? Do u think it will earn more if I continuosly contribute the same amount monthly?

  103. Hi! Fitz,
    Does it make any sense if I invest UITF-Equity Fund in BDO, BPI, Metrobank, PNB & UCPB at the same time? Or will you suggest to just choose one (since results will just be the same)? Salamat ha!

  104. Hello guys,

    May u try VL on manulife.Actually, we will have an Investors Forum this june. In this event, you would get to know what investment products are available and at the same time see how the investment funds are performing against the market. Get a chance to speak to our fund managers and ask personally your questions. If you are looking for other ways to diversify your investment portfolio or you are just simply scouting for other investment vehicles, I highly encourage you to attend this event.Please let me know if you are interested. Thanks & God bless.

  105. Hi Fitz!
    What is your thoughts on unionbank large cap uitf? I mean its one of the highest return sa uitf as what i see on reports. Thanks.

  106. Fitz,

    Thanks for the response. Actually all earnings I always re-invest in other instruments my way of diversification. And one way of securing profit as well.

    Another quick question, I have invested on BDO medium term dollar bond fund but it has not performed well for almost 3 years(still in the red as of this email). Do you think it is a good decision to move it to BPI where my investment is performing better and I could do cost averaging as the additional minimum placement is at $200 whereas to BDO’s $1000?

    Thanks again.

  107. @eena
    Your investment will definitely be positive given a year or two, probably shorter. That is because you have a fixed income fund, which is a low-risk investment.

    However, because it is low-risk, it will only increase by about 4-6% every year. Which means the money there will potentially double only after a little more than 10 years.

    It is always better to contribute regularly. If not monthly, then you can do it every two months or so, because then you’ll be doing the cost averaging strategy.

    Lastly, if your investment horizon is 10 years, then may I suggest investing in the UITF Balanced Fund or Equity Fund instead. This one earns much better, but only if you can afford to let your money stay there for at least 5 years.


    It’s okay to invest in the equity fund of different banks. The performance will be a little different because they have different fund managers who will buy different stocks.

    Don’t just invest in one, but don’t invest in too many banks that it becomes already inconvenient for you to visit so many branches just to invest.

    Personally, I have UITF investments in 3 banks. Then I also invest directly in the stock market. And I have mutual fund investments as well. This is a better way to diversify.


    You invested in that dollar bond fund during the US recession, so it’s expected that you’re still in the red. Don’t touch it and give it a few more years. Barring any global economic crisis, the US economy is bound to go up in the next few years, and your investment will as well.

    Again, just let your money sleep in BDO and not add to it. You can start a new cost averaging investment with BPI, as a way to diversify.

    Lastly, consider investing in Philippine Pesos as well as the country’s economy is looking well for the next 3 years or so.

  108. Thank you so much,sir for the advise. This helps me a lot in my investment decision. Actually, I just enrolled to BDO EIP UITF – this time the Equity Fund. I read your articles and the more I gathered the info from here I get to understand step by step the things I need to know about uitf. And yes I plan to invest in uitf for 10 yrs or more for retirement.

    Anyway,I enjoy reading the articles in your site. I learn so much. God bless…

  109. Fitz,

    Thanks for the advice.

    I am already invested in peso denominated UITFs, I have 3 different funds one for me, my wife and my kid. It will be our retirement fund and the college fund for my daughter. Followed your formula on how to compute for the tuition fee cost. πŸ˜‰

    I also have investment on the stock market.

    Will just monitor closely my dollar investments.

    Again thank you.


  110. Hi,

    Need help sir

    Something is bothering me about this equity fund investment, for example I invest 5000 last month at 9.10 navpu and now is 10.50 so I already earn the interest and claim just the only the interest of 700 and then the next day the navpu went up again at 10.52,my question is will I get my interest at 700 plus again or my navpu will be at 10.50 after withdrawing my interest before or will it stay on 9.10 because I didnt widraw my 5000?

    Thank you and god bless sir.

  111. @Mico
    The auto investment plan is when you instruct a bank to automatically take away money from your savings account and put it in an investment every month. At current, it’s BPI and BDO who has this service.

    Fund investments don’t work like a savings account where you can just withdraw the interest. Think of it as if you bought postage stamps.

    This means at 5000, you just got yourself 549 postage stamps (number of units of the equity fund) at 9.10 per piece.

    Now, each postage stamp costs 10.52 and if you want to redeem your investment, then you need to sell the postage stamps.

    If you want to “get the interest” of 700+ then you have to sell around 70 postage stamps, which will give you 736.40.

    You will have 479 “postage stamps” left after this transaction (549 minus 70).

    My advise, if you don’t need the money, then just leave it there.

  112. hi fitz. i am an ofw. nunh pumunta ako sa bank. metrobank for time deposits since d ko pa need ang money. they offerered me sa trust fund daw me mag invest kc mas malaki interest or returns. after reading all ur replies now natatakot na me kc one time ko lng ininvest ung 600k sa metrobank. wat po dapat ko gawin? pls help po. newbies talga.thanks

  113. Thank you sir it helps a lot πŸ™‚ this is a good discussion for a newbie like me.more power sir..

  114. Hi. I invested in BPI Philippine Stock Index Fund last Nov. 2012. Now, it’s gaining around 18%. Should I redeem the whole amount now & then wait for NAVPU to go down & reinvest the whole amount again? Thanks.

  115. Also should I diversify & not put my investments in one basket? What other funds aside from BPI Philippine Stock Index Fund do you recommend that is doing very well? Thanks.

  116. @lyn, that depends on your investing strategy. ask yourself, if you redeem now and the NAVPU continues to go up, will you be okay with it?

    lastly, if the index is doing well, then it usually follows that equity funds are also doing well, so you can diversify towards that

  117. Thanks Fitz. If you are in my shoes, what will you do? Will you redeem? Also pls specify exactly which of those equity funds you’re referring. Thanks.

  118. @lyn
    I can’t answer the question of what I’ll do if I were in your shoes because I don’t know your financial goals.

    If this were my money, and I’m deciding for myself and my own financial goals, then I would redeem it because I’m currently putting up a new business and I’ll use this money as additional capital.

    As for your second question, I’m not referring to any specific equity fund. All equity funds perform well if the index is going up simply because all these are invested in the same instrument, the stock market.

  119. Thanks again Fitz. We only have one financial goal in mind and that is to increase our investment & maximize our earnings.

  120. hello po,sa uitf ba kung gusto mo na e redeem yong investment mo kung ano ba yong price ng navpu yon ba lahat value ng investment mo makukuha o may tax ba ibabawas at kung meron magkano?

  121. @lyn
    that is not really a financial goal… what I’d like you to answer is where and when do you plan to use the money?

    it depends on the bank, most of them, the taxes are already incorporated in the navpu, so wala nang bawas and what you’ll get is straightforward multiplication of your units and the navpu

  122. Hi! Just a question, as I read thru the posts, you said High risk investment should be redeemed above 5 years. Let’s say I lose track of time and the market is doing bad again, should I wait for another 5 years or more?

  123. Hi Jericko, if the market goes bad, chances are you’ll be somewhere around breakeven at 5 years (rarely happens, and you’re probably be still positive) – which means you won’t have to wait another 5 years, worst case scenario would be 2-3 years in my opinion. Just monitor the market and redeem when the profits are acceptable to you.

  124. Hi Fitz! Thanks for this article man! It really is very educating and also so damn clear and easy to understand. πŸ™‚ btw I just want to ask where should i invest my money? i’m aiming for a short term goal of 160k in 1year. how much do you think should be my initial investment and how much do i invest per month? thanks in advance. πŸ™‚ more power to you.

  125. Hi Fitz, I’m planning to invest to the Peso Balance Fund, Equity Fund and Institutional Fixed Income Fund -Long Term at BDO also at PNB Higher Dividend Fund. Let say I out 50K on each, shall I need to add additional amount say 5K every month?
    Thank you..

  126. Fitz, just a follow question, say I brought a unit at 1.00 and I have 10,000 units. next month I brought at 0.80 another 10,000 at the redemption say after 1yr becomes 1.60/unit, my ROI will be based on 0.80-1.60?
    Many thanks..

  127. @wesley – it’s not required to invest any additional amount, but investing should be something you do regularly and not just one time πŸ˜€

    your total cost of buying those units are P10,000 (10,000 units x 1.00) plus P8,000 (10,000 units x 0.80) or a total of P18,000.

    when you redeem after a year at 1.60 per unit, then you’ll receive P32,000 (20,000 units x 1.60).

  128. following the discussion I’ve easily understand abt ung s UITF very easy ung logic all u have to do is let the time dobol ur money and put some faith at lakas ng loob my goal is if i invest in uitf is for my retirement so plano k is lhat ng extramoney ko i mean ung hnd kna tlga gagamitin dun k sya iinvest s uitf k up to d time n mag retire nko from work kya lng nag advice ung friend k wag daw dun s mutual fund k daw ilgay nag try ako magbsa abt mutual fund hnd k sya mkuha kgad so nlilito ako ngyn ano pba ung mutual fund mas safe b sya at mas mdali s uitf if u have time pls help us abt nman sna s mutual fund and ano po pla pede nyo i advice skin abt my goal what is best uitf or mutual fund super thanks po..

  129. hi fritz, have you heard about BDO’s Money8 Secure program? I went to the bank to inquire about their UITF but they offered me this. It sounds good to me but I am not really sure if this is better than UITF

  130. Hello Mr. Fitz! there are a lot of explanation given by many writers but I found yours as one of the clearest since I am not into Investment terms. Thank you so much!!

  131. Hi sir Fitz, I’m planning to invest in a UITF. I just found out through reading that it has three types: Fixed Income Fund, Balanced Fund and Equity Fund. I’m not familiar with the three types. Can you help me decide which one I’m going to take?

    I’m planning to have a long term investment.

    I want to learn more also about Stock Market. Can you suggest me something like books to read and seminars to take. Thanks!

  132. Fritz:
    I was in BDO yesterday to checked my time deposit and it’s no good (at least it earns a little as compared to putting it on savings account). An officer approached me and told why not invest on UITF and I asked about how much is the conservative annual return then she answered 20% more or less depend on the market but it’s good than savings account and time deposit.
    I am planning soon to invest on UITF and see how it will be.

  133. Hi Fitz,

    I found your article and I found it was very simple to understand about UITF

    Just to share:

    My UITF investment with Security Bank High Dividend Equity which I started last May 2014 had gained more than 15% as of this date. I placed additional investment at least monthly for my cost averaging. We are just thankful that banks nowadays offers online subscription and redemption so its more convenient in investing within our finger tips.

    First week of September 2014 when I invested a big amount of money as I need some targets until end of the year. I took the risk in investing as hoping of opportunities while there were crisis from the port congestion and recently removed Manila truck ban; as well of the government issues and etc. Fortunately, it turned good at it continuously gaining up. Now I gained 4% in 3 weeks time. Hoping to hit at least 10% within 60 to 90 days.

    In comparison with other banks’ historical UITF for the past 3 months, most of high dividends equities are increasing rapidly. I think this is the good time we invest while equities are picking up.

    I’m educating myself on this in preparation of venturing to stock markets. I like to start with COL

    Thanks and more power

  134. Hi Fitz,

    Are you familiar with Pioneer..? Aside from insurance, they offer stocks also.. Would you recommend it compared to investing in banks..?

  135. @gel
    Invest where you already have an account so it would be convenient. Both private and government banks would perform the same in the long-term anyway.

    That can be an option too. As always, it’s good to diversify and invest in different types of investments in different companies.

    I have UITFs in both BDO and BPI, I chose them because that’s where I have bank accounts, so it would be convenient for me to invest and monitor. I suggest you do the same too.

  136. HI Sir Fitz,

    Nag Invest po Ako sa UITF -BDO (Equity Fund).. Ask ko lang po… during redemption, alin po ba ang gagamitan NAVPU?..
    Kung Mag reredeem po ako ng January 10, 2015 before 12:00 nn , alin po ang gagamitin na NAVPU, yung po bang na published ng January 9, 2015, 7:00 pm o yung NAVPU na i pa-published palang ng January 10, 2015, 7:00 pm?… maraming salamat po.

  137. Hi Fitz,

    I opened an account with Citisec’s EIP Program about 6 months ago and Im not really sure if what Im doing is correct. What I do is for a certain stock, I buy the same number of boardlots every month….. Does it make sense or am I doing cost averaging wrong? @_@ Thanks!

  138. Hi Fitz,

    I’m a 30 year old single woman who is a curious novice. If I have extra 10,000 pesos now and based on my monthly salary and expenses I can afford to invest 1000 pesos a month. This would be apart from my emergency- savings account. Within 2-3 years I am hoping to have enough money to pay for my internship abroad. Can and should I invest in a UITF account for starters? I am interested with BDO’s Fixed-Income Fund would this be a good option? As of today 4/15 it says that the NAVPU for this type of investment is 1,924.3615 what does this mean?

    Thank you for answering my questions.

  139. @cashmereglow

    Yes, that is a good plan. Go ahead and invest in BDO’s Easy Investment Plan and choose the Fixed-Income Fund. Invest the P10,000 and top-up with P1,000 every month for the next 3 years.

    The NAVPU is the price at which you’ll get to buy units of the fund. You can ask the bank staff to explain that further to you. They should actually explain that to you. πŸ˜€

  140. Hi Fitz,

    I’m 22years old and I just started investing in mutual funds(equity fund) sa sun life and I only put 1k every payout since I’m still on the learning curve period. Reading this blog I also want to get a UITF but I’m torn between Equity and Balanced Fund.

    Do you have any suggestion for this?

  141. hi Fitz,

    Any feedback about the new BSP ruling for the UITF’s? Please share your opinion naman regarding this new rule, what are the advantages and disadvatages for the investors?

  142. Your article makes it easy to understand how investment works specially for a noob like me. Thanks a lot! Looking forward for more info and updates πŸ™‚

  143. Hello Fitz!

    I just want to ask is it possible for an undergraduate to start investing? I am planning to have the BDO Easy Investment Plan and invest in a UITF however I am at loss of which fund type would suit a student like me.

    I am planning to invest for 2 or 3 years.

  144. Hi! Very helpful blog for newbies like me. Question, is it advisable to invest now in a UITF that has negative ROI for Jan-May 2015? Last year it had very good returns.

  145. HI! Thanks for this, helps me more to understand what investment i have purchased. Just want to ask, does my investment in UITF will only earn if I redeem it?
    Starting to read your blogs. Thanks and Godbless πŸ™‚

  146. Im confused with the percentage πŸ™ So it doesn’t matter how many years you put your investment and it depends on the NAVPU. So for example i let my investment for 3 years and the NAVPU that day is 1.61,so for 3 years i will only receive 33 000 ?

  147. @Krishia and Jake

    Imagine that you bought a house and lot. The price of the real estate will go up through the years, but you don’t know how much it will go up.

    You can just assume the increase based on historical data. So if the location of the house and lot has good potential, then its price will go up a lot. If it’s in a bad location, then it will not go up very high.

    Your house and lot is your property, so if you want cash, then you would have to sell it. After many years, the market price would have increased, so you would make money.

    In UITF, you are buying “units” of a fund. This is like your house and lot, and its price is the NAVPU. So if you want your money back, you will need to sell your units, and the price that will be used is the current NAVPU.

    So the income is not based on the time, but based on the change of the NAVPU – and like the value of real estate, this eventually goes up in the long-term.

  148. Now i understand! Mr. Fitz you’re awesome. I’m really glad i saw your post. Thank you for this information. It’s very helpful to newbies like us πŸ™‚

  149. Mr. Fitz thanks for the clear and concise explanation of how UITF works, I already invested in a UITF product in a bank with only fifty percent of understanding of how UITF works. Basing on the product performance of the UITF I have invested, by monitoring it daily, the chart is not so promising , more on the flactuating side. I guess I really have to do my homework on studying the UITF performance of the banks pertaining the UITF Products they offer before I put in my hard earned money on it, but now you have enlightened me on how to determine my profit .

  150. Hi there Sir ..Good Day.I need an advised from you since your the specialist for this…i want my money to grow… im only 20 that tries to secure my future..keeping your money in a savings account doest really help you out…i wanted to know what can I do to my money… its only 10k..thats what i have so far …whats the best thing to do with it..

  151. Thank u for your clear explanation. I am a beginner so im trying still to understand the process of uitf. I’ll go to bdo this afternoon and will try their uitf. I am so inspired while reading this article. Wish me good luck .

  152. Hi Fitz,

    You have a very informative blog. I joined the BDO EIP and the bank will deduct 1k per month on my SA. I found out that the NAVPUs of BDO are going down the slope. Is it an advantage if they always deduct 1k during the time when the NAVPUs are its lowest?

    Your help will be highly appreciated.

    Thank you!

  153. Hi Fritz, just want to have your opinion on this matter. Currently uso po yung life insurance products na may investments na kasama like bpi-philam. Mas ok po ba yung ganun kesa sa mag-invest s uitf at kumuha ng term/life insurance separately?

  154. MY OPINION, BUT, I do not think you can lose, investing in a BDO,, UITF and here is why…The fund you chose, may have stocks in it, but all investments work like the sock market and most of the people calling the shorts, are the same…You have the traders, full and part time people who get off on buying and selling, you have the sharks, who go in buy low then sell high, as we all should do, the poolers, like me, who don’t mine pooling money, and the brown baggers, who hold on too long, only to sell when they get scared and it goes down…Everyone would make money, a little each year, better earnings than any home equity, or passbook account, except for you have the sharks who are on the phone and e-mails, and they all sell about the same time, causing prices to drop into the toilet, then they buy back their own units, and more so, sort of like the old fashion, stock slits, and it goes back up from the so called buying frenzy..Now, everyone will tell you, this does not happen, but if you watch the graphs, it does…There is no such thing as a correction, or legitimate buying frenzy in stocks, bond, mutual funds, it is all emotional and shark driven, so do not sell, after a CORRECTION,” lol BUY MORE, let it go down, because they all go back up again, always…Check the graphs and see, or buy safer units in the slower progressive graph funds…You can see them clearly….I just invested over 3.5 million in UITF’s funds at BDO, and I am waiting for them to continue to drop if not crash, for the sharks can scare me into selling…I did not become a millionaire being scared

  155. good evening sir.
    i am new to investing and i want to invest in uitf. i am still confuse, if i invest 10, 000, how will i know that my investment are growing, when i sell it? or it earns by itself with a certain rate? should i reedem it when i see that the market rise or let it in the bank?
    thank you.

  156. Hi po, question po if tama pagkakainterpret ko. Navpu ng equity funds as of 8/28/15. BDO is 423.6555, BPI is 95.62, SB 2.141094, PNB 1.376210. Lahat sila initial deposit is 10k. Meaning ba nito mas ok mag invest sa SC and PNB and others na single digits pa kasi mura lang per unit nila so mas marami akong mabibili sa 10k ko? since hindi naman assurance yung past performance, mas ok po ba na basis yung price per unit ng bank which is navpu. Thanks in advance sa pag clarify.

  157. Hello po Sir! I just recently learned about UITF and am very interested in it. I’ve looked up on banks to see what they are offering. I understand that here is a minimum amount to start up, like 10,000 pesos. What I want to know is do I have to add the same amount every month or could it be lesser or more? Thank you

  158. Hi Fitz,

    I’m not yet read all the question on the comment sections, however I tried to reach you through this section. I have a question and hope you can recommend me what should i do. I am currently enrolled/invested to BDO in UITF equity and I have have two COP but the one of our COP is always loss because i joint to UITF when the NAVPU is very high, so every time that the NAVPU is increased still my investment are losses.

    Example: the unit value of my first UITF equity is 21.5543 and the second one is 24.1492 …the gain loss of the investment is -797.15 and 310.77 respectively.

    So always i have losses if we can take the average of two investment..-486.38 loss

    Can you recommend what should i do on my first COP, shall i redeem it when the NAVPU is raise then reinvest it again when the time of NAVPU was down. or shall I keep it until 5 years.

    Thank you in advance for your recommendation.

  159. Hi sir, kung maginvest ako sa UITF as an investor kung halimbawa mamatay ako pano ho iclaim ng heirs ko ung investment ko? Meron po ba tax na kelangan bayaran para maclaim?

  160. I had invested 200k in one of the trusted banks in Philippines ; at UITF… And I am a beginner. Is it good to start at 200k right away? Because I wasn’t really ready to invest, all I wanted was to time deposit my 200k for 6 months to even one year to gain more and make my money grow, as I had saved it for almost 3 years but the interest appeared only 300 pesos .

    then when I talked to the personnel they suggested to invest my money , there were 2 types being explained to me, which I had accepted the first unfortunately I need to get a police clearance and ID, I don’t have both Cus I am an OFW and don’t have time to go to the municipality for police clearance anymore,

    When I went back, they offered this UITF which is quite better than the first one, Cus the fist (I can’t remember anymore) needed to have 3 years maturity and for 3 years, it can be withdrawn and probably 10k will be added to the 100k capital (something like that, based from what was explained to me)

    So my concern is that, did I make the good start to invest 200k one time go?

    I am just a bit fussy really about this money talks Cus it’s hard to earn and save then so easy to consume. So I had asked them meticulously , so far it was assured to me that , long term is good and no need to worry about it.

    But as I read thru, ur article, once the market rate fluctuates, lower than usual, the capital fund will be decreased?

    I asked the person in the bank before I finally settled it, Cus as I read thru the contract, about the ricks, there was one I highlighted and asked the bank about it, yet they told me that nothing will happen to the capital but just the rate and interest gain will be at risk, please explain to me further.

    Ur kind response would be appreciated


  161. Hi Fitz,

    I hope the our question should replied if you find time because it is big help to the beginners like me.

    Thank you in advance..

  162. @Arlo
    Yes, it is an advantage because you are doing cost averaging strategy and it is lowering your cost per unit.

    Mas okay kapag hiwalay ang life insurance sa investment. Please read article about BTID vs VUL.

    You can ask the bank how much is the value of your investment already is. If the value is already satisfactory with you, then you can sell it and take the money.

    @Mik Antonio
    You should not compare the price of the equity funds against other banks because those funds are composed of different stocks and investments. What is better to compare is the annual growth rate of these funds in the past five years.

    There’s no direct correlation to the two. The price of USD/PHP depends on the economy of both the US and the Philippines. While the price of the NAVPU is only dependent on the Philippine economy.

    The minimum amount to get a certificate of participation is P10,000 — but some banks allow P1,000 starting investment which you can add monthly — which means you can only get the investment certificate after 10 months, when the total investment is P10,000 already. The cycle repeats every P10,000.

    No fee for partial redemption. But when you do, you get the profit but your units also decrease, which means you will potentially earn less in the future if the price continues to go up.

    Just keep it for 5 years (or more). It is an equity fund, which should be a long-term investment.

    Your heirs will need to pay estate taxes to redeem your investments for themselves. They can just go to the bank and show a death certificate. Of course, they should know that you have investments and where they are so they can claim it when you die.

    Yes, it’s always good to invest, whether it’s a lump sum of P200k or if it’s smaller amounts. There’s no right or wrong when it comes to investing in general — as long as you invest. And yes, your money is just there and you just have to wait for its value to increase before getting it again — this takes a few years, and there’s no assurance how much it will increase, but it’s normally higher than time deposit rates.

  163. Hi po. Currently po may UITF po ako sa BPI, tapos gusto ko sana mag redeem na kasi mataas sya ngayon. Pero sabi niya yung price nang mareredeem ko today, bukas po pa daw malalaman, so ganun po ba talaga yun? May chance na mababa ung price ung mareredeem ko kasi bukas pa malalaman ang price today? Thanks in advance.

  164. Hi Fitz,

    I am planning to open a BDO UITF account with an initial investment of 100k. But I am worried that it is not a very practical start. Is it possible that I open an account where I can invest that initial amount and BDO will have to deduct 10k every regular periods, say monthly? I am planning to do this for 3-5 years. Is this a good approach for maximizing my earning potential? Based on the BDO NAVPU yield calculator, if I had invested 5 years ago, it would have grown to 3x as of redeeming today? Of course, BDO NAVPU keeps growing and that would have affected the computation? Do you think the yield from 5 years ago from now to the yield 5 years from now would somehow be relative? I’m just being optimistic.

  165. Hello Mr. Fritz,
    I’m new in investing and I guess I need to learn more. I’m very willing to learn and patient enough to do things around.
    May I know what does allocated amount means?

  166. Hi,I am just wondering why there isn’t anyone asking about Metro bank UTIF or Mutual Fund,lahat sa BDO and BPI banks.What are the difference?I am zero knowledge when it comes to investing money,but I am very interested to UTIF but not sure which bank should I go to.Thanks for you advice.

  167. Hi Fritz! πŸ™‚ I have to say the way you presented UITF/NAVPU is so far the easiest article to understand i have come across with. Thank you so much! I have come across your blog because i’m searching on how I can invest and make money out of my money πŸ™‚ I am 28 years old and really have nothing to show for it hehe. I wish I’ve been wiser earlier in my early 20’s and would have probably have a nest egg by now.

    I am a newbie obviously and I think it’s not too late to start investing now. I am looking for something short term and moderate risk to try out first and will eventually venture to other investment schemes as I go along. My payroll and savings is with BPI so i’m thinking of signing up with their MF/UITF. As a newbie, what would you recommend as type of investment i can sign up with?

  168. Hi Frits, Good Day! Thank you for posting this, I learned something from it. Base po sa article nyo nagdedepend yung ROI ng UITF sa current NAVPU. Pero would like to know deeper paano po nag grow2x yung ininvest ko sa UITF if pinatulog ko xa ng matagal sa banko? Paano po xa nag eearn?

  169. Hi Fitz. i am one of your millions of fans and avid followers. allow me to say “Thank you” because i have learned a lot from reading your blog, your book “Guide to Investing”, and discussions like this. I have acquired the courage to start investing because i know i am doing an informed decision (thanks to you!), I have a BDO EIP Equity UITF. i am wondering why as time went by…it takes three months for me to be issued a COP. (I have an EIP of 5,000 a month). As i understood, a COP will be issued once a 10,000 contribution is reached. But on the succeeding months, it took 3 months and the latest COP i got was for 4 months. Please shed some light on this. Thanks again!

    @Mackoy.. my two cents sa question mo. Yung NAVPU naga change everyday kasi it depends on the performance of the stock market where our pooled fund (the UITF) is invested in. And if you look at the past performance of these investment vehicles, or the stock market, it is on the UPTREND lalo na kung you remain invested for the long term. Though tumataas at bumababa sya, bumabawi naman in the long term. Hope this helps.

  170. @Roy
    To illustrate:
    Month 1: NAVPU is 1.000 so you’ll get to buy 5,000 units
    Month 2: NAVPU is 0.800 so you’ll get to buy 6,250 units

    At this point, when you multiply your total of 11,250 units by the current NAVPU of 0.800 the value would only be P9,000 — not enough to trigger a COP.

    That’s why it will sometimes take 3 months before a COP is issued. However, I don’t know why your latest COP took 4 months. I suggest that you ask the branch about it.

    I will also inquire in mine. Maybe there’s a change in terms that we’re not aware of, perhaps an increase of the required total value for the COP. Thanks for the comment about this.

  171. Hi fitz. Pls help how much percent did You put your investment n? 10%-30% , 40% – 60% , 70% – 80% or 90%-100% (BPI UITF)

    Im thinking of 90-100% ? Is that a good idea. What is yours?

  172. Good day!

    Hi Mr Fitz. I stumbled upon this page as I search for explanation and advise about uitf, the best strategies on subscribing and redeeming. Currently I have a uitf account with bpi and my investment made a small gain already after a very short period. This time I got excited what to do and as I read this blog and the tons of comment thread here for almost an hour now, I am thankful to realize not to redeem my gain but to just let it stay there so that the potential to earn more is bigger, rather than redeeming the gains everytime the NavPu gets higher.


    Is it advisable to just remain started with the initial P10,000 and just gradually top up monthly via RSP, than start with P10,000 and subsequently top up with a bigger amount, say P40,000, to avail more units while investment is still young, aside from having RSP of P1,000?

    Thanks, hoping for your generous advice.

  173. how often does the fund manager play our investments in a year?
    say, i invest P30,000, the fund manager then includes it in the pool of money. my question is how often does he/she make decision?

  174. @huggy
    I don’t invest in terms of percentage. I invest in terms of financial goals.

    @Juan Dy
    Yes, it’s always good to top up regularly as long as you stay in line towards your financial goal for the money.

    The fund manager will touch the investments / money of the fund as often as necessary. They’ll move it when they see a better investment opportunity.

  175. Good day sir! It was heavens stumbling upon this article when I need it the most (having bits still unclear tho)… I’ve already heard of BPI and BDO doing great in these fields, however, I have my investments at Security Bank. (wasn’t being mentioned here) They too have different terms for their funds but a few seemed familiar : High Div Equity Fund, Phil Equity Index, Peso Equity , Dollar Bond, etc… Have you an article on these? or maybe, a comparison on these types of NAVPU ? What is your take on the current Phil economy now that peso is at it’s low P48+ vs US dollar? – and it’s election time in the US … thank you. I just need some head start, anyways, my mind is already fixed to investing at long term(on their SB High Div Equity Fund—tomorrow, did the paper works earlier today ^_^ ),could be for at least a 1-2 year term, just to have a feel of that risk myself…

  176. @Johnp

    You can read this:

    Moreover, don’t compare NAVPU. Just ask if the fund was able to meet their targets for the past 5 years. If yes, then it’s okay to invest in there. It’s time consuming to compare which one has the highest returns because it’s a different fund every year anyway.

    Lastly, in my opinion, the Philippine economy is still doing good and will go up in the long-term.

  177. Hi Sir Fitz,

    . Interesado po ako sa uitf sa bdo. Maganda po ba mag invest ngayon na medyo mababa po ang peso rate? May kinalaman po ba ito sa pagtaas at pagbaba nong NAVPU? Tia po πŸ™‚

  178. Hi Fitz,

    I’m new to investing but this is the strategy I am testing. Instead of cost averaging, what i do is save a fixed amount regularly (5k/month) then when the navpu goes down or near bikini bottom i invest it all. This gives me the chance to buy at a low navpu price. Then when the navpu price increase at an acceptable percentage, I redeem then wait for it to go down again to reinvest. Is this an acceptable strategy or is it very risky?

    My other worry is when i redeem, it will take the navpu price by the end of the day. What if the price suddeny drops very low. Does this happen?

    I also want to ask you, if i have a disposable money that i want to invest which fund can i invest it that can offer around 10%pa or more?

  179. @R

    You are basically timing the market. It’s an acceptable and likewise good strategy but requires your time and analysis, which doing cost strategy doesn’t require.

    Do note that there’s is no best strategy. What you’re doing is just one of the many others that produce good results.

    Moreover, the level of risk of what you’re doing is the same as doing cost averaging. Primarily because NAVPU prices are not as volatile as individual stock prices, so sudden drops will be rare.

    Redeeming at a point of 5% profit is I believe, a good way to protect yourself against losses in those rare cases of sudden price drops. Again, this is just for UITFs. The case will be different for individual stocks (and some mutual funds).

    Lastly, only the stock market, equity funds (UITF and MF), and investing on an actual business has good potential of giving you more than 10% return every year. Forex trading is also an option but that’s already active income (no longer investing) and requires analytical skills on global economic events.

    I hope I was able to help. Thanks for the excellent questions.

  180. Hi Sir Fritz,

    Any comment and/or analysis on the ALLIANZ PNB life Insurance? Thanks.

  181. Hello Sir Fritz, Advisable po ba n kaming mga newbie ay bumili ng mga murang navpu price ng kauumpisang uitf products or yong mahal ang navpu pero ok naman ang performance for the last 5yrs?salamat po,l

  182. Good Day Sir Fritz,

    Just want to ask, kung advisable napo ba kunen ung Peso equity fund ko? hindi ko pa naman need pero diko alam kng pano strategy para mag grow pera ko.
    I was surprised na meron pala akong ganun, 4 years na sia at never kong na monitor ito.
    35k ang investment ko at diko sure kung naluge ba ako or hinde.

  183. I been invest in the pnb life, for 5 yrs hinde tumubo at kulang n sya amount n inivest k so, i get it the i try bpi equity valua fund, almost 2 weeks, na.then i recieve a statement, about my invest i surprise hinde same amout sa binigay im feel depress ang bilis naman. So what i do this,2 weeks plang luge nko,

  184. @Lynorek

    PNB Life is life insurance with investments. It will not have profits for the first 5 years because most of what you “invest” there goes to the payment of the life insurance.

    BPI Equity is a stock market UITF. It’s high-risk, which means you should expect paper losses for the first 2 years. You will begin to earn significant amount once you go past 3 years and above. It is after-all, a long-term kind of investment.

    I suggest that you try to invest instead on learning how different types of investments work so that you can have the proper expectations when it comes to these financial products. Enroll in a seminar, buy a book, and/or consult a financial advisor.

  185. Hi Fiz, I have invested in bpi uitf for almost 3years now but it is done monthly. So far I have almost 90k with almost 10k gain. But my situation is this. My wife is preggy and is about to deliver this August. I am short of budget for this another life changing situation and I have two options. 1st is to withdraw my UIFT and 2nd is to loan from the bank. Which do you think is more reasonable to do?

  186. Hi Frank. Withdraw the UITF. Present needs are more important. Once your finances become stable, you can start investing again. Congratulations on the future new member of your family. πŸ˜€

  187. Hi Sir Fitz, Ii just invested in PNB Prime Peso Money Market Fund. However, after i completed all the steps, i am still at a loss as to how it really works because the bank personnel i was talking to at the time was also held busy attending to other matters. So pls kindly enlighten me, how does this fund really work? and is this a good investment? Thanks a lot!

  188. hi fitz! I’m about to invest in UITF via chinabank since I just ready in the newspaper that stocks have soared into an all time high, is now a good time to invest in UITF?

  189. Hi Fitz,
    I’m a risk-averse type of investor and I don’t really like to monitor the market movement. Is it a good idea to invest in bonds and uitf at the same time? If yes, which bond and uitf do you think are the best for me? Thank you.

  190. Hi Fitz,

    I have these questions in mind:

    1. Do the banks have a minimum holding period for UITFs?
    2. Do the banks charge certain fees when you decide to redeem your investment?
    3. Do you have an article reviewing BDO’s EIP? πŸ™‚


  191. @charmaine Sorila

    1. Yes, usually 30 days. A few have none. It depends per UITF.
    2. Yes, but it’s already incorporated in the NAVPU. So when you redeem, just multiply your units with the current price.
    3. I wrote about BDO EIP before, you can use the Search function at the sidebar (for desktop view) or down below (for mobile view). Just type “BDO Easy Investment Plan” and click search.

  192. Hi Fitz,

    I invested in BDO Balanced Fund sometime in August last year and the value today drastically decreased. Do you recommend to redeem my investment already to avoid more losses?


  193. @Arnold, redeem only if you will be needing the money within the next 2 years and you have no other source of cash for that need; otherwise, you can just hold on to your units until the market recovers, which will be in around 3 years probably

  194. Planning to invest in BDO UITF but based on the reviews the market is low right now. When will be the best time to invest? Thank you sir

  195. @Kenn – think about it… isn’t the best time to invest is when the market is low, so that when the market is up, then you’ll already have profits? those who say that you should not invest because the market is low probably don’t have investments. but as i always say, if you’re investing for the long-term, it’s always a good time to invest

  196. Personally, I am longing for the day that options will become available on the PSE or a separate options exchange. I would love to see my beautiful bride doing the same I I do in one of my US based IRAs (Individual Retirement Account) accounts, that is, writing covered calls and cash secured put options for income. There is one ETF (Exchange Traded Fund) offered on the PSE that I am aware of and that could be the underlying that an investor would use to create a regular cash flow. by the sale of covered writes. Great article Mr. Fritz, please continue the good work you do.

  197. Thanks for the enlightenment Sir. I have heard about ATRAM. I am also doing some research but the term is too technical that i could really understand sometimes. Is it also good to have an investment with them? Thanks. Your reply will be appreciated. God bless

  198. Sir possible po b if maginvest ako sa uitf ng 50k agd tpos yung sa eip ko sya idadaan para ang pipiliin ko n monthly n cost average ko ay 5k?

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