Stocks vs Mutual Funds vs VUL vs UITFS

**cutedoc** · August 10th, 2016 04:43 PM

to cut the discussion shorter, these instruments are all of the same, money are pooled and the fund managers are the ones who does the technical tasks.

which one is good which one is better is it VUL, UITF or mutual fund?

well it depends on your personal goals and what you aim to achieve and when you want to have it done.

know what you need and start from there.

and if you need to know more question ask me=)

im an executive financial advisor of AXA =)

**1D4LV** · August 11th, 2016 10:46 AM

Originally Posted by cutedoc

to cut the discussion shorter, these instruments are all of the same, money are pooled and the fund managers are the ones who does the technical tasks.

which one is good which one is better is it VUL, UITF or mutual fund?

well it depends on your personal goals and what you aim to achieve and when you want to have it done.

know what you need and start from there.

and if you need to know more question ask me=)

im an executive financial advisor of AXA =)

salient differences:

VUL : with life insurance factor (percentage of your total placed amount is allocated for protection and death benefits). some insurance companies require you to pay premium on this, while some companies allocation portion of your earnings from the investment part to the premium part.

UITF : straight forward. offered by banks. invest on a per unit basis.
MF : same as above. however, this is also offered by smaller investment companies.

but all of them are invested in the same channels (equities, stocks, bonds, etc.)

**_Cathy_** · September 18th, 2016 05:28 PM

How is Sunlife's MF? What are the odds that I might end up losing money after 5 years? I am thinking of investing from my Lola's account. It is just idling at the bank for over 10 years earning close to nothing so I might as well take a chance elsewhere that earns better than a regular savings account.

**jut703** · September 18th, 2016 08:54 PM

Originally Posted by _Cathy_

How is Sunlife's MF? What are the odds that I might end up losing money after 5 years? I am thinking of investing from my Lola's account. It is just idling at the bank for over 10 years earning close to nothing so I might as well take a chance elsewhere that earns better than a regular savings account.

Ranking of the Top Mutual Funds in the Philippines (May 216) – PinoyMoneyTalk.com

Sunlife MF is okay, but falls short vs. the usual index fund:

The numbers correspond to Jan-May 2016, 1-year, 3-year, and 5-year performance.

As to the question on the odds of losing, it's highly unlikely.

Why do I say this? Well simply put, the Philippine growth story remains intact. Our macroeconomic fundamentals are sound - our BPO industry is growing rapidly, while OFW remittances remain solid. Our economy is mostly local consumption-driven, so we are less susceptible to declines in global growth. We are entering into a demographic sweet spot, where majority of the population will be of working age within the next 2 decades.

Despite all the noise (as evidenced by the Digong thread), the truth is that there's not much Duterte can do to mess up this upward trajectory of the Philippine economy. Investors don't fuss over every single provocative statement that the admin makes. Unless something drastic happens, like a coup d'etat, the positive uptrend should remain.

Sent from my SM-N910C using Tapatalk

**its showtime** · September 18th, 2016 09:10 PM

Bookmark

Sent from my iPhone using Tapatalk

**unmarked** · September 18th, 2016 09:10 PM

I heard the popular MFs are available in COL financial. Question is, may front end fees din ba when opening via COL? Mag open palang kasi ko ng account. May nabasa ako pag via COL walang front end fees.

Sent from my SM-N9005 using Tapatalk

**jut703** · September 18th, 2016 09:49 PM

Originally Posted by unmarked

I heard the popular MFs are available in COL financial. Question is, may front end fees din ba when opening via COL? Mag open palang kasi ko ng account. May nabasa ako pag via COL walang front end fees.

Sent from my SM-N9005 using Tapatalk

No front-end fees. Just the usual management fees of around 1.5%.

The MFs in COL function a lot like the UITFs which you can subscribe to from your BPI Express Online account. I think the Philequity Index Fund is a great MF to invest in.

Sent from my iPhone using Tapatalk

**Flipo** · June 21st, 2017 06:58 PM

Originally Posted by jut703

Having invested in all of your options, I would say that the most liquid would be UITFs and stocks. UITFs are far easier to manage - just invest monthly and let compounding and the economy do its magic.

For stocks, you have the flexibility to buy and sell different stocks at different times. However, depending on how much money you'll put in regularly, you might not be able to diversify as broadly as with UITF. For example, you invest 10k a month, and want to buy PLDT shares. At 2k per share and a minimum of 5 shares, you consume your entire 10k budget on one stock. Then next month you buy some other stocks to balance out your portfolio, so in effect, you don't really get to maximize cost-averaging because you're buying different stocks at different times with potentially different market trends.

I could go on, but bottomline:
- Minimal effort, decent returns: index UITF
- Significantly more effort, marginally better returns (or worse, if you suck): stock market

UITFs also have lower management fees than VULs. 1.5% is standard, unlike with VULs where they're not as transparent with their management fees, and you're really not earning until the 10th year or so. Also, the returns of my VUL (invested in equity) aren't up to par with the index.

As Benjamin Graham says - index funds are the best tool for the average joe to reap the benefits of a growing economy without having to pour in too much effort.

Sent from my iPhone using Tapatalk

After reading the the post here and other investment thread, I finally took the plunge into investing sa BPI UITF and they recommended to me yung short term fund at Phil consumer equity fund.

Up to this date okay ba itong napili ko, at kung okay ba din yung UITF ng BDO?

**jut703** · June 22nd, 2017 09:43 AM

Originally Posted by Flipo

After reading the the post here and other investment thread, I finally took the plunge into investing sa BPI UITF and they recommended to me yung short term fund at Phil consumer equity fund.

Up to this date okay ba itong napili ko, at kung okay ba din yung UITF ng BDO?

I personally prefer index funds because over the long term, very few (if any) actively managed funds can beat the index fund.

Doesn't matter if BPI or BDO, both have index fund UITFs. You can check the returns here:

The Best Bank UITF in the Philippines (Jan-March 217) – PinoyMoneyTalk.com

You'll see that index funds beat managed funds most of the time. BDO's managed fund is higher, but that's just for Jan-Mar 2017. You have to check if it can continually sustain that level of returns.

Sent from my SM-N9208 using Tapatalk

**Flipo** · June 22nd, 2017 05:31 PM

Originally Posted by jut703

I personally prefer index funds because over the long term, very few (if any) actively managed funds can beat the index fund.

Doesn't matter if BPI or BDO, both have index fund UITFs. You can check the returns here:

The Best Bank UITF in the Philippines (Jan-March 217) – PinoyMoneyTalk.com

You'll see that index funds beat managed funds most of the time. BDO's managed fund is higher, but that's just for Jan-Mar 2017. You have to check if it can continually sustain that level of returns.

Sent from my SM-N9208 using Tapatalk

Thank's bro, for sharing your experience, appreciate it. God bless.