LOL, FTW, AF and UITF
- Miss Investor
- Nov 7, 2016
- 3 min read
Yup. Time to add UITF in your Social Media Vocabs
Lol, FTW, AF, are some of the most common acronyms used in social media. Pretty cool right? It saves your energy from typing more letters. But Miss Investor is about to share to you some more cool acronym - UITF!
Warning: please grab Kleenex for your nose.
Ok, so I'm gonna do my best to make this sound simpler to you guys.
UITF stands for Unit Investment Trust Fund.
I know, I know, there's a slight droplet of blood coming from your nose and your neurons are warning you that they're about to explode. I had that too a couple of years but the moment I begin to understand what this freaking acronym means and what it can do for someone's financial life, I was like, "HECK! Why didn't they teach this in school??!!" I swear, after reading this, you'll gonna start loving UITF's more than your Kylie Lipkits and Pandoras.
If you haven't read my other blog, That thing called Mutual Funds, READ THAT FIRST. I have pointed out there that Mutual Funds are like UBER POOL. It's almost the same thing with UITF's except that:
1. UITF'S are offered by banks. Therefore they are monitored by Bangko Sentral ng Pilipinas (BSP)
2. You don't own shares. You just buy units.
Now let me break it down for you.
First of all, UITF's are only available in banks. So if you're thinking if you could buy this in the department store, nope sorry. Kidding.
Unlike in mutual funds, this type of paper asset is not offered by investment houses i mentioned in my other blog 5 PH Investment Houses You Should Check Out neither by Insurance Companies. IN most cases, the bank is also the Fund Manager.
Second, with UITF's you're not buying shares (of corporations), you are buying UNITS.So how does that work?
Brace yourselves coz we're gonna do some math!
Let's say for example
You have invested 10,000 pesos TODAY. and market value per unit (we call that the NAVPU or Net Asset Value Per Unit) is 100 pesos
10,000 pesos /100 (price per unit)
You have =100 units
Now let's say 3 years later the NAVPU becomes 150 pesos per unit
150pesos x 100units
Your money=15,000 pesos
Simple right?
Unlike if you'll be spending 10,000 pesos let's say on Kylie Lipkits alone, after 3 years, what will you gain from that? My goodness, you can't even pawn your Pandora! I mean nothing's wrong with getting these guilty pleasures but isn't it smart to also ALLOCATE your money on Money Machines like this?
Ok so what now? What does this all mean to you? What's in it for you?
Here lies the power of your money compounding, without having to work for it. (Insert evil laugh here)
Are you saving up for that bucketlist of traveling all over the world for?
Are you planning to buy your self or your parents that dream house 10 years from now?
Do you want to be more liquid (having more cash) in the next 10 years?
Do you want a decent retirement?
Whatever your money goals are, so long as it's 5-10 years or more, then UITF's are the way to go.
This is not a guaranteed investment though since the investment depends on the market performance. But don't fret, if you're money goals are long term, then there's no need to worry.
Also, make sure to talk to the right people when investing. When you go to the bank, there will be professional representatives who will help you out and check out first which is the best investment suitable to your goals and risk profile.
Like this Post? Show us some Love! Share this on Facebook! (Tap FB button below ↓)
Don't Forget to Like and Follow Her on Facebook Miss Investor and Instagram missinvestor
Disclaimer: The author of this article is not connected or affiliated with any investment companies and or Financial institutions that offers the investment stated above. All information shared in this blog is based on her knowledge from taking training and seminars in the financial industry.
Comments