BDO UITF - Banco De Oro Mutual Fund (Fixed Income Fund) Philippines | riantalks



BDO UITF – Banco De Oro Mutual Fund (Fixed Income Fund) Philippines





Admit it, you are NOT happy with your savings account earnings. With less than 1% per year for savings account, who would be happy? This is the reason why I’ve decided investing on other bank and financial programs. What am I referring to? Well, I opened up an account Forex online, Mutual Fund and Online Investment on Stock Exchange and shares. Looking for a good Mutual Fund program? You can try Banco de Oro UITF or BDO Unit Investment Trust Fund. About three months ago I purchased some units from BDO UITF Fixed Income Fund in SM Fairview Annex branch.

What is Mutual Fund and UITF?


The BDO UITF is a form of Mutual Fund offered by Banco De Oro Universal Bank. In a simple way, let me provide you some information about what Mutual Fund is. When you apply for a Mutual Fund in any banks, you are actually lending some money to the bank to invest in different programs. This way, you can simply earn profits without the hassle of investing them yourself especially to stocks and shares. The bank will do that for you. But since the term “mutual” means you will share common experiences, both profit and losses will be shared to you in case the market goes down.

But do not worry, investing in a mutual fund involves very little risk based on my analysis. There may be times when your money’s worth is far lesser than your initial investment but as time goes, the approach of your funds will increase therefore giving you profits in the long run. That is why when you sign up for the BDO UITF specifically to UITF Fixed Income Fund, you will see a recommendation of holding period of about 3 years. This is the optimum time frame for you to earn significant amounts of profit. Of course you can withdraw your funds anytime but take note that BDO universal bank will charge an equivalent amount if you will do this within 30 days.

How much is the initial investment deposit for mutual funds?

Applying for a BDO UITF Fixed Income Fund is easy. You simply present your identification documents, ID and some other files. Then you can immediately submit your initial capital of P10000. A certificate will be provided to you after about 3-5 banking days. This certificate indicates the number of units you have actually purchased. To check how much your investment’s worth, simply multiply that unit to the daily NAVPU unit in the BDO website. Look for the program you have applied for. In my case I purchased units under the BDO Fixed-Income Fund.

When I purchased my units, the worth of my P10000 was 7.3668. If you will take a look at the the BDO NAVPU site, the current rate (when I wrote this article) of BDO Fixed-Income Fund is 1,389.5349. Multiplying 7.3668 to 1,389.5349 = P10236.43. So my initial deposit of P10000 earned P236.43 in about 3 months. I don’t think you will earn the same from a regular savings or deposit account.

Do other banks offer mutual funds too? Yes, BPI mutual fund and Metrobank mutual funds are among the popular ones. Meanwhile, other financial institutions also offer fixed income investment like Sun Life and Philam mutual funds.
Are there any other investments that I can try?

Online Forex trading is becoming popular among Filipinos nowadays because it tends to give you huge profits overnight. The principle behind Forex trading online is that you can buy a minimum amount of dollars ($25) using  your credit card. You can then exchange this to another currency like Japanese Yen or British Pound. When the exchange rate moves in a single day, you either gain or lose profits. Of course, it is up to you if you want to exchange your dollars at any given rates and you will earn profits likewise if you are selling it more than the value when you bought it. The good thing about Forex is you can do it online at your own home.

 



Take note that you can actually earn a lot of money from Forex trading online but there are also risks involved. If you do not carefully analyze your transaction in buying or selling dollars, you can also lose some amounts of money. The real exciting thing about Forex is you can trade daily so that you can get back whatever losses you had from the previous day. I have been trying Forex for about a month now and so far I have been earning positively at 34%. If you are still in the learning stage, you can first try the demo account offered by online Forex companies.







14 Comments »

  1. I still have some of my investments in Metro Equity Fund and BPI Equity Fund. Both of which are UITF products.

    Thanks for dropping by my site.
    .-= [Rian]´s last [article] ..[post] =-.

    Comment by Millionaire Acts — November 8, 2009 @ 8:01 am

  2. Is Metro Equity a subsidiary of the Metrobank?

    Comment by riantalk — November 8, 2009 @ 8:03 am

  3. im not sure how these mutual fund goes but i have heard some things about these on some financial advisors and from the book of robert kiyosaki, its worth to try… thanks for this info…
    .-= [Rian]´s last [article] ..[post] =-.

    Comment by sernan — November 8, 2009 @ 11:19 pm

  4. You are welcome sernan, actually it is like a time deposit only that the profits are higher AND with risks. Time deposits have fixed profit rates and almost zero risk unless the bank itself becomes bankrupt. anyway the insurance will cover for it. Mutual funds are uninsured.

    Comment by riantalk — November 9, 2009 @ 12:46 am

  5. maybe try ask Francisco Colayco aka TUPAC hes the expert in this field That Man With a White Hair

    Comment by noel — August 2, 2010 @ 3:44 pm

  6. thanks… I was really enlightened… been thinking of how to invest in a low-risk investment….

    Comment by precious — October 26, 2010 @ 1:50 pm

  7. im working here in abroad and i can a
    ccess my bdo account online. my question is, can i buy some uitf fund thru online? how is the process?

    Comment by mnq — February 11, 2011 @ 2:09 am

  8. Hello,
    I do not think it is possible. You have to go to the nearest branch of BDO to apply for a uitf fund. They will be giving you a certain form that you need to affix your signature on. However, you may contact bdo directly as they might be able to give you another way of purchasing trusts for example through auto debit or through fax.

    Comment by riantalk — February 11, 2011 @ 8:34 am

  9. Hi,

    I am very interested in dealing with trust funds. May I know what are the requirements?

    Jerrick

    Comment by Jerrick Go — June 19, 2011 @ 5:56 pm

  10. Yes it is possible even if you do not have a savings account with them. Please visit the nearest BDO branch.

    Comment by Anonymous — September 4, 2011 @ 1:44 pm

  11. how can i apply mutual funds i dont have account and also im here in Saudi Arabia

    Comment by N Esporlas77 — September 17, 2011 @ 7:55 pm

  12. You may contact BDO for overseas arrangements.

    Comment by Anonymous — September 20, 2011 @ 1:29 pm

  13. Simply go to any BDO branch and apply, yes inital 10K is required since that’s the minimum.

    Comment by Anonymous — November 18, 2011 @ 9:09 am

  14. Hi I am from bdo. you need to have bdo account because in time that you will terminate your fund it will be credited to your account. thanks!

    Comment by Camille Morales Inducil — January 23, 2013 @ 11:55 pm

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