WRITTEN BY

ALEX CARPIO, CPA

(FOUNDER OF ONEPESOS.COM)

HOW TO
CHOOSE THE
BEST UITF
INVESTMENT

YOUR ULTIMATE GUIDE ON

CHOOSING THE BEST UITF FOR
YOUR MONEY IN JUST 35 PAGES
 INTRODUCTION
I decided to write this book because a lot has been asking me on my blog "
what is the best UITF to invest?"

To start investing in UITF:

You don't need to understand a lot of technical things. Anyone can invest in UITF.

You don't need a lot of time to track your investments.

This book is divided into 3 parts:

PART 1: What is UITF?

PART 2: Choosing what UITF to invest
PART 3: More on UITF

HOW TO READ THIS BOOK

If you want to invest right away in UITF. Go over to PART 2 (page 17) to
know what UITF you will be investing.

Part 1 is all about UITF. Understanding what UITF is. It also includes FAQ
(Frequently Asked Questions) about UITF that I have written in Filipino (page 15).
You can skip this part if you are already familiar with UITF.

You can also skip this part if you don't have the time to understand UITF. Go
over to PART 2 for the guide to choosing UITF.

PART 3 will includes discussion about types of UITF. It also includes what is
our recommended UITF for long term investing.
 ABOUT THE AUTHOR

Alex Carpio is a CPA (Certified Public Accountant) and Founder of

onepesos.com. I created the website to help those Filipinos understand the

basics of investing. With years of experience as a CPA and as a continuous

lifelong learner. I will share the knowledge to help understand investing in

simple terms. The website is filled with great and easy to understand articles

about saving, personal finance, investing, retirement and other money

matters.
TABLE OF CONTENTS
I. PART 1 WHAT IS UITF
What is UITF 5
How do you earn money in UITF 6
How do they compute navpu 8
What are the fees 8
Is there a guarantee that you will earn  8
Where are UITF invested 10
How to open UITF 10
3 Major types of UITF 10
FAQ (Frequently Asked Questions) 15

II. HOW TO CHOOSE THE BEST UITF

FOR YOU
17
How to choose the best UITF
19
How much risk you can handle
20
Knowing your risk 
24
How long you are going to invest

III. MORE ABOUT UITF

Types of UITF 29
Our recommended UITF for long
term investing 31
Save and Invest Regularly 33

ONEPESOS.COM
 PART 1:

WHAT IS UITF?
 What is UITF

UITF or Unit investment trust fund is an open-ended pooled trust fund

denominated in pesos or any acceptable currency, which is operated and
administered by a trust entity and made available by participation.

Investors pooled their money to a Fund (UITF) . The Fund is then invested
and manage by professionals.

How do you earn money in UITF?

You earn when the Net asset Value per unit or NAVPU goes up.When you first
invest in UITF, you will be given units. Divide the money you invested by the
NAVPU at that time to determine how many units you will have.

To understand better, let’s use an example:

How do they compute NAVPU?

Divide the Total market value of the fund by total number of units.

The computation is at the fund level. Meaning the total assets that the fund
invested using all the money of all the investors.

For example, in an Equity UITF (invested in stocks). The market value is the
price of all the stocks of the fund. Then deduct all the management fees, taxes and
all other expenses. Divide that amount by the total number of units of all the
investors. You will get the NAVPU.

Navpu is computed and published daily.

What are the fees that will be deducted to your UITF investment?

The money you will receive is the market value of units at the time you
redeem your investment. Meaning NAVPU multiply by number of units. There will be
no more any fees or charges. The only charge that can be deducted is early
redemption fee. These are fees that are deducted when you decide to redeem early.
Usually within minimum holding period of 30 days. Early redemption fees are
usually 1% of the amount you invested. Some banks don’t charge early redemption
fees while some does.

Is there a guarantee that you will earn money in UITF?

No, there is no guaranteed rate of return that you can earn in UITF. You will
earn depending on the performance of the fund.

Let’s make a simple illustration :

 The P7,500 that Juan invested is now worth P14,250. The P2,500 that Pedro
invested is now worth P4,750.Of course this is a simple illustration of what is UITF.
In real life it is a more complex one.

The point I want to make in this illustration is that your investment will
depend on how the the fund performs. How much can you really earn in UITF? Like
I said, it depends on the performance of the fund. In year 2017, Security bank’ SB
Peso Equity Fund has the highest return among UITF with almost 27%.

If you invested P10,000 at the beginning of the year, you will earn around
P2,700 at the end of the year. If you had invested P100,000. You will earn P27,000
on that investment at the end of the year.

Where are UITF invested?

The assets in which UITF invest depends on the type of the UITF.The most
common investments are:

-Stocks
-Bonds
-Money market

How to open a UITF account?

It is as simple as going to the bank. Bring two valid IDs and the minimum
initial investment. Usually the minimum initial investment is P10,000. They will ask
you to fill up a risk profile questionnaire to determine what type of UITF suits you.
Deposit your initial investment and then you will have your UITF investment.It will
take only about 30 mins.

What are the kinds of UITF?

In reality, there are a lot of of types of UITF. But to simplify, we can group
them into three. Based on what type of assets they invest in.

The three types in which you can categorize UITF based on what assets they
invest are:

-Money Market UITF

-Bonds UITF
-Equity UITF
 To understand the risk of investing in a particular type of UITF and also to
know the potential returns. We have to understand the nature of the investments.

1.​MONEY MARKET

Money market are mostly invested in term deposits.Term deposits are money
invested in bank account. Which you cannot withdraw for a specific time.Usually
less than 1 year. Term deposits pays fixed interest rate.

Risk and Return of investing in Money Market UITF

Since money market UITF invest in time deposits. A no-risk and with
guaranteed return on investment. Money market UITF are the safest type of
UITF.Since the risk is low, the return is also low compared to bond and equity UITF.

2. ​BONDS

Bonds are money of investors that the investor lends to a company. In

return, the company will pay interest over the term of the bond until the company
repay the full amount.
For example, Juan invest in a bond offered by San Miguel Corporation.

The term of the bonds are P100,000 3% annually for 2 years.

Juan will received P3,000(3% x 100,000) per year as interest. After 2 years,
SMC will repay the full P100,000 to Juan.

Note that there are two type of bonds:

-Bonds issued by private Companies.

-Bonds issued by the Government.

The common examples of Government bonds are Fixed Treasury notes(FXTN)

and Retail Treasury bonds(RTB). The term of these bonds can range from 3 years
to 20 plus years. The main difference between the two is that FXTNs pays interest
semi-annually while RTBs pays quarterly.
There are UITF that invest heavily on Government Securities.

Risk and Return of investing in Bond UITF

The risk of investing in Bond UITF are greater than in Money market UITF.
The return is also higher since the rates offered by bonds are higher that time
deposits.

When compared to stocks. Bonds are less risky. Because the investor is a
lender, the borrower will pay the amount when the bond matures. In investing in
stocks, the investor is an owner. His money may goes up and down depending on
the performance of company. Also bonds has obligation to pay interest. While
stocks pay dividends only when declared. Because of this risk, the return of bonds
is also lower compared to stocks.

3. STOCKS

Equity UITF are invested in the stock market. Stocks are small pieces of a
company. Stocks can be bought by humans, companies, mutual funds,UITF. When
buying shares in a company, the buyer owns a small part of that company. The
price of a stock can be based on many different things.
Risk and Return of investing in Stocks

This is the best UITF in terms of return. And because of that, this is also the
most risky. In 2017, the top performing UITF had a return of 27.73%

Meaning if you had invested P100,000. You earned almost P27,000 that year!

Does this mean that you should invest in equity UITF?

Like we said earlier, the investment itself alone is not the only factor of
choosing what UITF to invest in. You should consider yourself too. Part 2 of this
short ebook will show you how you can choose the best UITF for you.
 FAQs (Frequently Ask Questions about
UITF)
1.​Ano ang UITF?

Ang UITF ay isang investment kung saan pinagsasama-sama ang pera ng

lahat investors. Pagkatapos ay i-invest at ima-manage ng Fund Managers. Para din
itong mutual fund.

2. Legit ba ang UITF?

Legit ito at hindi scam. Ang UITF ay kinikillala ng SEC at nireregulate ng BSP.
May batas na kumikilala at namamahala sa UITF.

3. Paano ako kikita sa UITF?

Kikita ka sa UITF pag tumaas ang NAVPU nito. Halimbawa 100 ang NAVPU
nung nag invest ka. After 1 year, 120 na ang NAVPU. Halimbawa may 100 units ka.
Kikita ka ng P2,000(100 x 20).

4. Paano nalalaman ang NAVPU?

Araw araw ay pinapublish ang NAVPU tuwing 7:30 pm. (Para sa mas
detalyadong explanasyon kung paano nacocompute ang NAVPU, basahin ang part
1)

5. Guaranteed ba ang kita sa UITF?

Walang fixed of rate of return sa UITF. Ang return na matatanggap mo ay

depende sa performance ng fund.

6. Ano ang mga charges sa UITF?

Wala ng charges na ibabawas sa UITF. Ang makukuha mo na pera ay kung

ilan ang units ang hawak mo multiply ng NAVPU. Halimbawa nag-redeem ka ng 100
units at ang NAVPU ay P150. Makakatanggap ka ng P15,000 (100 units x 150).
Wala ng fees or charges na ibabawas pa.

7. Magkano ang kailangan sa pag invest ng UITF?

 Karaniwan ay P10,000 ang minimum initial investment. Pagkatapos noon,
karamihan ng UITF ay pwede ka ng magdagdag ng as low as P1,000. Depende ito
sa UITF.

8. May minimum holding period ba ang UITF?

May mga UITF na may holding period meron din UITF na walang holding period.
Karaniwan ang holding period nila ay ​30 days.

9. Anong mangyayari pag nag withdraw ako habang nasa minimum holding
period pa?

Magkakaroon ng bawas na charge sa kung magkano ang matatanggap mo.

Karaniwan ang charge ay nasa ​1% to 1.50%.

10. Saan ini-invest ng mga fund managers ang UITF?

Depende ito sa uri ng UITF. Pwedeng sa money market instruments, bonds or

stocks.

11. Ano ang kailangan para makapag invest sa UITF?

Initial investment at isang valid ID.

 PART 2:

How to Choose the

Best UITF for You
 HOW TO CHOOSE THE BEST UITF FOR YOU

Choosing an investment is like choosing a love partner.

You have to know if it is the right one for you.

In investing, everyone is different. There is no investment that will be the

best investment for anyone. That’s why sometimes it’s called "personal" investing.

To know what is the best UITF for you, you will answer these 2 questions:

1. How much risk you can handle?

2. How long you are going to invest?

Later I will show you how you can know the answer to these 2 questions.

Why are these 2 questions important?

Because you want to avoid investing in a UITF that does not match you.

Take a look at the following examples:

Meet Juan

Juan invest in a equity UITF because his friend James recommended it.
(Equity UITF are considered high risk investment ). Juan does not have knowledge
or experience in investing. He invested his lifetime savings of P100,000 in a equity
UITF. Suppose that after 3 months. His investment goes down by 5%. His UITF is
now worth P95,000. Juan is not use to this situation. Juan panics and withdraw his
investment. Juan loses P5,000.

Meet Pedro

Pedro wants to invest his savings of P50,000. Pedro will use this money after
1 year. His friend Peter recommended investing it in a equity UITF saying that
equity UITF has the highest return. Pedro invested in a equity UITF. After 1 year,
his UITF goes down by 5%. Because Pedro has to withdraw the investment in a
year. He withdraw and receives P47,500 ,losing P2,500.
 These 2 examples are classic mistakes that investors make. Because they all
want a high return, they always look for the investment with highest return.
Remember that in investing “ the higher the risk the higher the return”.

Now, does this mean that in order to have high return you will occasionally
lose money?

No, because that would be gambling,not investing. All risk are ​manageable.
By answering the 2 Questions. You can avoid the mistakes made by Juan and
Pedro.

By answering ​#Question 1 How much risk you can handle. You can
avoid the mistake made by Juan.

Juan invested in a high risk investment. Juan is a conservative investor. A

conservative investor is an investor that should invest in less risky or safe
investments. By answering #Question 1 first before investing, you will know what
type of investor you are. By knowing what type of investor you are. It will be easier
to choose what UITF is best for you.

By answering ​#Question 2 How long you are going to invest. You can
avoid the mistake Pedro made.

Pedro only plans to invest the money for short-term purposes only. The
problem is that Pedro invested it on a Long-term UITF. By answering Q2 you will
know how long you are going to invest. By knowing that, you can choose the best
UITF for you whether that would be short-term or long-term.

The purposes of answering these 2 questions is that it will help you choose
the best UITF for you. It will help you manage risk and avoid the mistake of losing
money.

Now the question is how you will answer these 2 questions.Don’t worry, I
have prepared a guide on how you can answer these questions.

QUESTION#1 HOW MUCH RISK YOU CAN HANDLE?

Knowing how much risk you can handle or ​risk tolerance ​is important to
help you choose the UITF that will fits you.
 This is important because we want you to avoid the same mistake of Juan.
Imagine you have a 1 Million. You invested it on a Equity UITF. Your investment
goes down in value by 5%. You panic and withdraw like Juan did. You will lose
P50,000 (5% of 1 Million). That’s a costly mistake.

When you invest in a UITF. The bank will give you a questionnaire. This is to
assess your risk tolerance. After answering the questionnaire. You will be classified
into either :

A. Conservative Investor
B. Moderate Investor
C. Balanced Investor
D. Aggressive Investor

This is in order of how much risk you can handle. Conservative investors
having the least tolerance to risk. Aggressive investors having the highest
tolerance to risk.

So how you will know what type of investor are you?

You will answer a series of questions. Try to answer them as honest as

possible. At the end. We can determine your risk tolerance.

So let’s start:

Answer the following questions as honest as possible:

#1 In general, how would your best friend describe you as a risk taker?

A. A real risk avoider

B.Cautious.
C.Willing to take risk after researching
D.A real gambler

#2 You are more comfortable with investments that primarily provides:

A. Safety of funds, returns are secondary only

B. low returns but with a little risk
C. moderate returns with moderate risks
D. high return but with high risks
#3 Which among the following financial instruments do you have knowledge of or
basic awareness of?
A.None
B.Time deposit
C.Bonds
D.Stocks

#4 Which among the following financial instruments are you currently invested in or
had actual experience in terms of investments?
A.None
B.Time deposit
C.Bonds
D.Stocks

#5 If you owned a stock investment that lost about 20% in 3 months, You would …
A. Sell all of the remaining investment.
B. Sell a portion of the remaining investment.
C. Hold onto the investment and sell nothing.
D. Buy more of the investment.

#6 When you think of the word "risk" which of the following words comes to mind
first?
A.Loss
B.Uncertainty
C.Opportunity
D.Thrill

#7 You see yourself needing these funds

A. Anytime
B.Within a year
C. Over a year to three (3) years
D.More than three (3) years’ time

Now calculate your score. Put score to each letter you answer. A’s score
would be 1. B is 2,C is 3 and D is 4.
Add your total score.
Question Letter Score

TOTAL
SCORE

If your score is… You are……

Less than 8 points CONSERVATIVE

8 points – 14 points MODERATE

15 points – 21 points BALANCED

22 points – 28 points AGGRESSIVE

 Now that you've determine what kind of investor you are. What does this
mean to you? Remember that the investor types are in order of risk tolerance.
Conservative investors has the lowest tolerance to risk. Aggressive Investors has
the highest tolerance.

This means that if you are a Conservative Investor, the best investment for
you are the safest investments. If you are aggressive investor. The best investment
for you are the riskiest investments.

In part 1. You've learned the different type of UITF. You've learned that they
can be arrange in order of their risk. ( if you haven't read part 1. That's ok. Just go
with our recommendations here.)

Based on what type of investor you are, we can now make recommendations
on what is the Best UITF for you.

Investor Type Recommended UITF

Conservative Money Market UITF

Moderate Bond UITF

Balanced Balanced UITF

Aggressive Equity UITF

Things to keep in mind

Assessing risk using a questionnaire is subjective. There are no right or

wrong answers. It’s purpose is to predict how you will react to the up and downs of
the investments.

It is best to go with the recommendations IF:

- You are not sure what UITF you want to invest.

- You don’t have the time to learn how really UITF works.
- You don’t fully understand how UITF works.
Now that you know your risk tolerance, what’s next?

We've learned that one of the things to consider on what UITF to invest is
Risk Tolerance. Risk Tolerance is knowing how much risk you can handle.

Again,risk tolerance is important because:

You want to invest in a UITF with risk that you can handle.​You want to avoid
losing money like Juan did in our example. To know what is your risk tolerance. You
answered a series of questions. Knowing your risk tolerance is one of the most
important things to consider in choosing UITF.

Another important thing to consider is the answer to our #Question 2 - how

long you are going to invest?

QUESTION #2 HOW LONG YOU ARE GOING TO INVEST?

Sometimes they call this “Investment Horizon”. We will use this term from
now on. Knowing your investment horizon is also important because you want to
know what UITF will match your Investment horizon.

Generally, the following are the ​recommended time to hold on to your

investment:

Type of UITF Investment Horizon

Money market UITF At least Less than 1 year

Bond UITF At least 1 - 3 years

Balanced UITF and At least 3 years

Equity UITF

Things to keep in mind

-the above table are just recommendations . You can have a gain in just a year in a
Equity UITF. It all depends on how the market is doing at that time.
-If you are in a loss since the time you invested. Take a look at this table. Usually
the investment horizon is the time you need to wait in order for your investment to
goes up again. That is why it is important to know your investment horizon. If your
investment horizon is only for 1 year but you invested in a Equity UITF. Your
investment might go down in the first year depending on how is the market
performing. But eventually that will reverse and goes up again after 2 to 3 or more
years.

HOW TO KNOW YOUR INVESTMENT HORIZON

Now the question is: ​how you would know your Investment Horizon?

Perhaps you are thinking it is just knowing how long you are going to invest.

Yes that is definitely right. But another important thing to ask yourself in
knowing your investment horizon is this :

“​Where would you use the money you will invest?”

Answering that question will give you the estimate of how long you will keep
the money invested in the future.

Important things to note:

-The above table are just the at least recommended time to hold on to your
investment.

-Do not invest money set aside for specific purposes on a high risk
investment. An example of this is maybe you are planning to get married next
year. You have P500,000 and you plan to invest it. Because in 2017, equity UITF
had a return of almost 25%,you are attracted to the return and decided to invest it
on Equity UITF.

Do not do this because a high risk investment takes longer time to recover.
Let’s suppose that in 2018 the Equity UITF is down by 10% . You have to withdraw
the money because you are going to use it for your wedding. You end up losing
P50,000 (10% of 500,000) receiving only P450,000. You can not hold on to your
investment and wait for it to goes up again because you have to use the money.
This is why it is important to know what is your investment horizon is.
 In this example, it is better for the couple to just invest it on a money market
fund.

What if I want to invest in a riskier investment than what is

recommended?

In case you are a conservative investor, it is more likely that you have no
experience at investing. If you want to invest in a Higher type of UITF in terms of
risk, here are things that you should consider first:

- Learn as much as you can about UITF first before investing

- Really know how to react when the market is down. You want to avoid
panicking.

If you really don’t understand how UITF works. It is best to go with the
recommendations based on your risk tolerance.

Choosing a bank

The next decision you need to make is on what bank you are investing.

UITFs are usually offered by bank. Almost any major banks has UITF. We
suggest that you choose a bank that you already have a bank account in. Because
doing transactions like adding to your investment or redeeming your investment
will be easy. But having a bank account is not required to begin investing in UITF.

Choosing what bank to choose is really a personal choice you can make. If
the bank of your choice has the things that you look for in a UITF ( more on this
later ) , Go with that bank. We suggest investing in a bank that you're comfortable
with.

What to look for in a UITF

The factor that to look for in a UITF is that it has low minimum additional
investment. The initial investment for most UITF is P10,000.

Later if you want to add to your investment. The amount is usually lower.
Minimum Additional investment for most UITFs range from P1,000 - P5,000.
 Look for UITF that has low additional minimum investment so that you can
easily add up to your investment. If you want to know how much is the Minimum
Initial and Additional investment. Just go to the website of the bank where you
would invest. I’m sure that you can find it there.

How to open a UITF account

Opening a UITF is as simple as going to the bank. Just bring your money as
initial investment. Bring valid IDs. When you’re in the bank , ask where you can
open a UITF account, they’ll show you. They will ask you to fill up some forms and
deposit your initial investment. And that’s it, congratulations, you have now UITF
investment. This would take about 30 minutes.
 PART 3:

More about UITF

 In part 1 and part 2 of this book, we classified UITF where the UITF funds
invest. These are Money Market UITF, Bond UITF and Equity UITF. In reality there
are many type of UITF. All these UITF are still invested in the three major assets:
Money market instruments, Bonds and stocks.

The difference between them is that they invest in the same asset but in a
different type. For example, there are UITF that invest only in corporate bonds.
There are also UITF that invest in Government bonds. There are also UITF that
invest in two of the major assets like stocks and bonds( Balanced UITF). There are
also UITF that invest in foreign investments.

Here are some of the different types of UITF:

Balanced UITF

If you have taken the risk assessment questionnaire in part 2. You have seen
that a balanced UITF is recommended for balanced type of investors. So, what
exactly is a balanced UITF?

Balanced UITF is a combination of bonds and stocks. The proportion is

commonly 50% stocks and 50% bonds. A Balanced UITF is recommended
investment for balanced or moderately aggressive investors.

Government bonds UITF

Two of the most common Government bonds are ​Fixed Treasury

notes(FXTN) and Retail Treasury bonds(RTB)​. The term of these bonds can range
from 3 years to 20 plus years. FXTNs pays interest semi-annually while RTBs pays
quarterly.

There are UITF that invest on Government bonds. Examples are the BDO GS
Fund and BPI ABF Philippines Bond Index Fund.
Dollar UITF

There are UITFs that invest in foreign investments. Examples of these are
dollar UITF. They invest in stocks,bonds and other type of investments in foreign
countries. To invest in dollar UITF, the required investment is also in dollar
currency. This type of UITF are good for diversification purposes.

Active Equity UITF

If you decided to invest in a equity UITF. You may be face by the choice of
choosing between Active Fund and Passive Fund. So what actually are these two?

You have learned that Equity UITF invest in stocks. The major difference is
that in Active Funds- Fund Managers do buy and sell of stocks. While in Passive
UITF. They just hold the investment for long-term capital appreciation.

Passive Equity UITF

Passive funds are also called Index Funds. Why are they called index ?
Because these funds follows an index or benchmark. In the Philippines, the PSEi is
the index or benchmark. PSEi stands for Philippine Stock Exchange Index. The PSEi
comprises of top 30 corporations in the Philippines.

So if the fund is Equity Index Fund the fund will invest in the top 30
corporations. They will follow the composition of the Index. Since they are passive
funds. They don't do any buy and sell of stocks.
OUR RECOMMENDED UITF FOR LONG-TERM INVESTING

You’ve learned that the UITF with the longest recommended time for
investing is the Equity UITF. Obviously it is also our recommended investment for
the long term.

So why equity UITF is better than the other types of UITFs in long term investing?

It is because stocks generates higher return than bonds and money market
instruments. Stocks are the riskiest among the UITF. But given that you are to
invest for the long-term, at least 10 years. You have the time to wait for your
investments to recover in case stock market prices went down.

What specific type of Equity UITF we recommend?

There are two types of Equity UITF:

Active funds and Passive or Index funds.

In investing in the stock market. There are two types of investors.The one
who trades and believe that they can beat the market and the Long-term investors.
Long-term investors are the ones who believe that stock market is very
unpredictable. You can never know when a stock will rise and fall. These long-term
investors diversified their investments and hold their investments in the long-term.

So which one we recommend? Trading or Long term investing?

Here in onepesos.com we preach long term investing

Why?

Because we too believe that the stock market is unpredictable. There are a
lot of websites/guides/guru that will attract you to invest in the stock market. They
will show you how to trade. Trading is buying a stock low and selling it high. They
will attract you on how much money you can make by doing this. But, a big BUT is
that they DO NOT tell how to pick the stocks that prices will goes up. Why they
don't teach this?

Maybe they don't really know which stocks to buy that price will rise. If they
know, they would just trade instead of selling advice. I'm not saying that beating
the stock market is impossible. Sure, there are people who can do it. But I'm sure
these people has already a lot of experience and knowledge doing this. Plus they
also have the time. Trading is their full time job.

For us with limited time, it is best to invest Long -term and PASSIVELY.

Which is better ACTIVE FUNDS OR PASSIVE FUNDS?

Like in stock market investing. There has been also great debate about
Active funds and Passive funds.

By applying the principles we discuss earlier about trading vs long term

investing.
We recommend passive funds.

Passive funds are Index funds. These UITF invest in an Index.In the Philippines, The
Index is the PSEi.In, conclusion.Our recommended for long term investing are ​PSEi
Equity Index Funds.

PSEi Equity Index Funds

PSEi composes of the top 30 largest corporations in the Philippines. PSEi

Equity Index UITF invest the fund in these top 30 largest corporations. Investing in
PSEi Index UITF advantages includes:

-It provides diversification

-The UITF is invest in stocks of companies that are already large and established.

Another advantage is the given history of the PSEi over the long-term. The
PSEi has it downs but over time it has continually recovered and bounced back.

Save and Invest Regularly

If there is one most important advice that we can give to you, this is it:

“ Save and Invest Regularly.”

By doing this, you take advantage of your time. If you invest P1,000 monthly
over the next 20 years. That money will grow to PHP 1,436,518.46.

If you invest P1,000 monthly over the Your money will grow to:
next:

30 years PHP 2,062,843.31

40 years PHP 5,550,348.15

And that is just P1,000. When your salary increases in the future. It is
possible to make it P5,000.

If you invest P5,000 monthly over the Your money will grow to:
next:

20 years PHP 3,591,296.14

30 years PHP 10,314,216.57

40 years PHP 27,751,740.74

DO NOTE​ that this computation are made under the assumption that:

-The money is invested in a fund with an annual return of 10%.

 The point here is that investing early and regularly will really pays off. Make
it a habit to save and invest a portion of your money.

UITF are great investments that can help you with saving and investing. It is
because most UITF has automatic saving and investing features. This is where your
bank will automatically deduct and invest money in your account.

UITF also makes investing in the stock market easier and simpler. You don't
have to pick what stocks to invest. The fund managers will do that for you.
Investing in a UITF also provides you with diversification.

Take advantage of the benefits of investing in UITF. Save and Invest

regularly.
Thank you For
Reading

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