What are UITF’s?

What are UITF’s?

UITF’s are hassle-free investment funds where your money is pooled together with the money of other people. We then invest these pooled funds in high-yielding assets, which were previously only available to people with large amounts of money to invest. You can choose from a full range of fund types to match your requirements.

How does a client invest in a UITF?

A client invests in a UITF by purchasing units of participation in the fund. The units of participation represent the investor’s proportionate share in the total value of the fund. As an investor in the fund, the client does not own any specific asset of the fund, only a proportionate share in all of the fund’s assets.

Is there any guarantee of principal or income in UITF?

There are no guarantees of principal nor income. Losses, if any, shall be for the risk of the UITF investors. UITFs are governed by BSP regulations but are not deposit products, hence are not covered by the Philippine Deposit Insurance Corporation (PDIC). 5.

What is the difference between UITF and mutual funds in Philippines?

In the Philippines, mutual funds are supervised by the Securities and Exchange Commission. UITFs, on the other hand, are sold by banks. You buy units of participation in the fund, whose value is called the Net Asset Value per Unit (NAVPU).