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What Is UITF?

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Filipinos are becoming more financially conscious these days. Along with the rise of the willingness to do business and earn money, comes the awareness that the money earned should be saved or invested somewhere.

When looking for an investment option in the Philippines, you’ll come across the acronym UITF, while it seems like jargon to some, it means Unit Investment Trust Fund.

UITF Investment
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UITF is also like mutual funds where you join other investors and other entities to form a pool of funds that will then be handled by an expert to make sure it will grow.

See: What Are Mutual Funds?

In UITF though, you buy units of investment in the funds, unlike in mutual funds where you become a shareholder for buying shares.

Where to buy UITF

UITF is managed and sold by the big banks here in the Philippines. If you have a savings account with BDO, BPI, RCBC, Metrobank or other commercial and universal banks, you can ask them how you can start investing in their UITF.

Minimum amount to start

The minimum first investment is P10,000. You can then invest P1000 a month for the succeeding investment that you will make.

Guarantee of UITF

Just like any other investments, there are no guarantees that you’ll get a positive return. UITF also has risk factors that you should consider before investing.

Types of UITF funds and investment

Money Market Funds – this is for short-term investment, it has moderate risk.

Bond Funds – also has a moderate risk but for longer terms.

Equity Funds – this is for long-term and the risk is aggressive.

Balanced Funds – this is the same as Equity Funds.

Is it a good idea to invest in UITF?

The answer to this question will depend greatly on you and your saving goals. Here are 5 factors to consider before investing in UITF.

  • Investment goal
  • Returns expectation
  • Length of investment
  • Risk tolerance
  • Amount you can invest

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