Ever wonder how you can save more? Where to invest money in the Philippines? – If you’re one of those OFWs who want to save more money and probably wondering what’s the best way to do that without eating up too much of your time and effort, wonder no more because UITF has come to solve your investment dilemmas.

Considered as probably one of good OFW investment tips that you can master, UITF investments aims to target long term savings for anyone interested to join.

With 80/20 of work done, 20 for the work you’ll do and 80 for the profit you’ll get from this type of investment, you’ll surely gain a lot from UITF. Here’s a simple and best guide for all Filipinos abroad who want to save up a lot for the future.

1. What is UITF?

UITF or Unit Investment Trust Fund is collective investment fund offered by banks and handled by experts to ensure high yield and quality returns. It’s a good investment choice if you don’t have enough time or knowledge when it comes to actual stock trading because the experts are always in aid to manage your investment through securities, bonds, equities, and other instruments. These experts are trained to invest properly and are objective when it comes to good investing.

Since professional fund managers are responsible in making investment decisions, you need not to have expertise of experience since this is a passive investment between you and the bank. As an investor, you get to invest in assets that may normally not be accessible like expensive stocks or high-yielding corporate bonds typically offered only to institutional investors.

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Different Kinds of UITF

Stock or Equity UITFs This invests on stocks. This is ideal if you don’t want to touch your investment for at least 19 years and good if you’re going to have this investment for your retirement.
Bond UITFs This invest in bonds which means they are lending money to a government or company. You’ll have a certain interest rate because of the money you have lent. If you’re someone who’s planning to save money for car or house this is a good UITF for you.
Balanced UITFs This type balances money between stocks and bonds.  This is ideal if you want to have a safe zone for those who wants to gain a lot from stocks and at the same time gain interests.
Money Market UITFs This one invests on the money market which means dealing with short term loans. It’s good as emergency funds and for storing funds that you’ll use for next years to come.

2. How UITF Works?

If you’re interested to save up your money in this type of venture, you’re probably wondering how to start in UITF?

Any potential investors are welcome to drop by on any branches of local banks they want to open a UITF account. You would be guided by the special representative for Trust Investments and assist you by introducing the various investment offerings. Complete the information needed for Client Suitability Assessment form and once you’ve decided which kind of UITF you want to have, you’re all set to start your investment. In the Philippines, one can open for a unit investment trust fee for as low as ₱10, 000.00.

What are the benefits of UITF?

Diversification By investing in a UITFs, risks are spread out across the various investments held by the pooled trust fund.
Liquidity UITFs are designed to allow you to can redeem units of participation at any time.
Affordability UITFs generally require a much lower minimum investment amount compared to other investment alternatives.
Better earning potential UITFs provide access to financial instruments not readily available to retail investors.
Exempt from reserve requirements UITFs are not subject to reserve requirements imposed on bank deposits.  Thus, your funds earning potentials are maximized
Professional Fund Management UITFs allows you to gain access to the expertise and services of seasoned fund managers who are able to actively monitor the markets for possible investment opportunities and managed the risks for you.
Transparency Trust entities are required to publish the UITF price at least weekly, allowing investors to compare investment performance of various fund managers.
Regulated Product The management and administration of UITFs by Trust entities are governed by the Bangko Sentral ng Pilipinas (BSP).  Thus, aside from the yearly triple audit conducted to BDO Trust, each of its UITF is subject to a separate annual audit by an independent auditor that is acceptable to the BSP. All these safeguards redound to the protection of the UITF investors.

3. What is UITF 40?

UITF 40 details the rules for accounting for revenue from service contracts. A revenue for service contracts now need to be accounted for under what is known as the ‘stage of completion’ method. This means that if a contract is in progress at the year end, then the supplier of services would include the proportion undertaken to that date in its accounts. Profit cannot be deferred by leaving jobs in work-in-progress after they have reached a billable stage. So if the contract is 75% complete, 75% of the contract value will be recorded in the accounts. The fact that the amount may not be billable or recoverable from the client at that stage is not relevant.

4. Can OFWs invest UITF even when they’re abroad?

Yes, they can. Several bank require personal appearance for a potential investor to open UITF account with them. But you don’t have to worry because some of these banks also help people from overseas to open the same account.

Unit Investment Trust Fund (UITF) Companies

Here are some of the banks that offer top investment trust funds in the Philippines.

If you have PNB account, you can open UITF account online. They also have the “Global Filipino Funds” UITF, specifically for OFWs and available as a peso money market fund or a dollar money market fund.

If you have existing and active BDO, BPI or Metrobank account, you can contact your Philippine branch via e-mail or telephone and they can help you with your application for UITFs by sending you the required forms, which you can fill out, sign and then send via courier.

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