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Match your investment horizon with your UITF investment

If only Unit Investment Trust Fund (UITF) investors matched their investment horizon with the UITFs they got into, the decline in UITF prices during the summer of 2006 would not have been that bad.

This is according to the Trust Officers Association of the Philippines (TOAP) who believes increasing interest rates was not the only factor that pulled down the net asset value per unit (NAVPU) of UITFs early this year. The panic selling of investors who were frightened by the falling prices also contributed to the UITF shakedown, the TOAP explains.

Where should I invest?

What’s a good investment program? Where should I invest? You probably are one of the many who keep on asking the same questions. Dr. Noet … Read More

How to maximize bank deposits, government bonds

Original article by Dr. Noet E. Ravalo, former Chief Economist of the Bankers Association of the Philippines, published on Philippine Daily Inquirer’s Business section: If … Read More

Are income from Mutual Funds and UITFs taxable?

Question: Do I need to pay taxes on my earnings once I redeem my Unit Investment Trust Funds (UITFs) or shares of mutual funds?

Answer: No, as long as proper taxes have already been collected prior to the redemption of your UITF participation. That’s according to Senen Quizon, a tax manager at Punongbayan & Araullo, who wrote the article “Taxation of Unit Investment Trust Funds (UITFs)” published in Business World Philippines on August 2006.

What’s the difference: Bonds vs. Stocks vs. Pooled Funds?

If you’re wondering what the differences are among various investment options such as Stocks, Bonds, and Pooled Funds, here’s a short and easy primer for you.

If you want a more detailed discussion of these investment products, head over to our article on Time deposits, stocks, bonds, mutual funds, real estate: Where to invest my money?.

How to spot fake money

Do you know what makes a Philippine Peso bill a fake? If you don’t, these pointers from the Bangko Sentral ng Pilipinas (BSP) on how … Read More

Don’t just save money, save it wisely!

Your cash today will have a smaller value in the future if you don’t guard against inflation.

It pays to save and keep some money for the future — you’ll be prepared and won’t need to borrow when unexpected emergencies come up, and you’ll have enough to make that long-awaited purchase for a car or a similar asset you’ve long desired.

But while it is good to have cash available at all times, it is not wise to hold very large deposits. Experts say doing so is a misapplication of resources.

When cash is not king

To most businessmen, cash is king but even the most successful of them do not maintain very large deposits of cash. Most likely, their wealth will be spread out in various assets, from stocks to bonds, mutual funds, real estate, and finally, cash deposits at a smaller percentage compared to the other asset classes. Here are at least two reasons why their cash deposits are not that substantial:

National Life Insurance Company’s Term Plus Products: 8% and 10% p.a.

NOTE: We have started the Investment Products series that compiles deposit and investment products offered by banks and financial institutions in the Philippines. These articles … Read More

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