So I present to you CHIRP, a 5-step guide to UITF investing. I suggest that you take this "cheat sheet" with you when you've decided to subscribe to your first UITF.
H - Check the Historical Return on Investment (ROI) of the fund that is suitable for you. Although the return for the current year is not guaranteed, it will somehow give you an idea of the earning potential of the fund. Comparing the ROI of different funds will give you an idea which is the better fund. MYPG will provide an analysis of the available equity UITFs in the Philippines every Tuesday, so make sure to come back. :)
I - Know the minimum Investment Amount of the fund. In general, only invest an amount that you won't be using in the near future.
R - Know how to Redeem your investment. Redeeming your UITF means selling/withdrawing/encashing your investment. Check how long is the minimum holding period. Also check the early redemption charge, for your reference (just in case you need to sell your investment before the minimum holding period ends). Check how many days it will take for you to receive your money (usually deposited to your designated settlement account).
P - Know how you can monitor the fund Price. Prices are presented in terms of NAVPU (Net Asset Value per Unit) and usually available in the bank's website. It is not necessary to check the NAVPU daily. Feel free to check it in case you want to know the current value of your investment. To do so, multiply the number of units you bought with the end-of-day NAVPU of your UITF.
Hope this guide helps in your UITF investing! Good luck! Financial Literacy , Home , UILF , UILF Notes
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