What is UITF

by Gily Tenorio on March 18, 2011



Many people nowadays want to invest some of their saved money but don’t know where to put it because of lack of knowledge about various investment schemes available today. As a result, some people fall to scams and frauds because of the lure of high returns in the shortest time possible.

Actually, there are many legitimate investment vehicles an individual can enter to without becoming a victim of scams. I don’t know why there’s a little information about these schemes. I believe that if many Filipinos know these possible investments, it will greatly help our economy. One good investment you can put your money is by investing in UITF.

What is UITF?

Unit Investment Trust Fund or UITF is an open-ended pooled trust fund from individual investors. UITF is managed by a professional fund managers who invests the fund in various investments schemes like government securities, bonds, stocks or commodities.

An open-ended pooled fund is a type of fund where an investor can invest or redeem his or her investment any time he wants subject to the Declaration of Trust’s agreement.

The investing mechanics, operations and managements of a UTIF is contained in a Declaration of Trust. It is the governing document where you can know who are the fund managers, where is the UITF invested, how much is the past and current price of the UITF, and a lot more.

Where Can I Buy UITF?

Typically, UITF is managed and sold by most of the big banks in the country like BPI, BDO, Metrobank, RCBC and other commercial and universal banks. In order to buy a UITF, you should visit your bank and there are some forms you need to fill up before you can actually invest in it.

How to Buy UITF?

If you want to buy UITF, it is advisable you have your own savings account in the bank you are planning to invest because it will be the source fund of money for your investment. After having a bank account, you can link it to your UITF account so it will be easy for you to add or buy more UITF in the future. BPI and other big banks has this feature.

How Much is the Minimum Investment in UITF?

Normally, the minimum FIRST investment you can put in UITF is P10,000 and P1,000 to the succeeding investment you will make.

Is UITF Insured?

UITF is not a deposit products even if it is offered by the bank so it is not insured by Philippine Deposit Insurance Corporation (PDIC). In other words, your principal money invested may not be return to you in full.

Is there a Guaranteed Returns in Investing in UITF?

No. Any investment vehicle cannot guarantees a positive return because of many risk factors involved. You should read and understand first the risk disclosure agreement of the UITF before making any investment.


UITF is one of the best investments you can enter to particularly if you are working abroad or you don’t have extra time to make a business. You should study whether it is suitable for you depending on your goals.





Comments on this entry are closed.

Gerolamo Cardano September 23, 2012 at 08:24

What is the unit in UITF? How much is one unit? Does all UITF same with other UITF in terms of unit with other banks that offer this investment vehicle?

Gil September 23, 2012 at 10:37


The unit in UITF is just like a share of the fund. For example, when you buy UITF, you can get a certain number of shares or “unit” for that particular fund. UITF has many different types and price depending on the bank or company offering it. It is almost the same as mutual funds, only UITF id being offered by the bank not an investment company.

ruperto nambio July 17, 2011 at 12:06

with your comments on UITF I think I will use again my UITF, which I cancelled it, because the promise of the bank I contacted did not materialize. Now, with your
explanation, I will try to contact that bank and ask more of their UITF. thank you.

Anonymous July 27, 2011 at 13:52

Hi Ruperto,

Thanks for the visit. Just study first before you invest. That’s one rule I want to share with you.

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