How to Invest in UITF or Unit Investment Trust Fund. UITF is a collective investment schemes wherein funds from various investors are collected or pooled together into a single common fund to achieve a common investment objective, like investing in bonds. The funds collected are placed under the care of a professional investment manager who manages the performance of the fund’s portfolio.
This section provides a step-by-step procedure on how to purchase UITF from BDO Securities (a stock market brokerage). It is similar to the procedure when you buy it online through BDO (the bank), only the log-in and welcome screens are different. In fact doing it either way will redirect you to the BDO Trust and Investment Page.
The procedure assumes that you have applied for an account with BDO Securities. If not, you could skip to How to Open a Trading Account and apply for one.
Once you have successfully opened and funded your account, you may proceed to purchase UITF by logging in to your account and selecting Buy UITF on the initial screen of BDO Securities.
A notice will appear informing you that you will be redirected to the BDO Trust and Investment page.
If you are okay with that, select Yes and then click on Proceed. You will then see a screen that shows you your Trust Investment details. If it is your first time to purchase UITF, the table would be empty.
From the left navigation menu, select Transaction, then Regular UITF Subscription.
On the Regular UITF Subscription screen select Open a New Account.
You will then be asked to click on the Online Facility Service Agreement and then click Proceed to move to the next step.
The Online Facility Service Agreement is what makes the online UITF different from over-the-counter UITF. When you buy UITF by physically going to the bank, you will not get to sign this document. Hence even if you could see your investment online on the My Trust Investment screen, you will not be allowed to redeem it online. You have to go back to the bank with your UITF certificate.
Now you will be asked to answer the Investor Profile Questionnaire.
Once you are finished answering the questionnaire, click on Submit. You will be given your Risk Profile Score and then next screen will give you a list of UITF products. These are classified into two: (a) recommended UITFs based on your risk appetite, and (b) other UITFs beyond your risk appetite. Select from any of the recommended UITFs and then click on Proceed.
You will be led to the Client Investment Suitability (CIS)/Investment Policy Statement screen.
Clicking on the Client Investment Suitability (CIS)/Investment Policy Statement will open a document that shows you just that, for your specific investment, Peso Bond Fund for instance.
Close the document and then press I Agree on the earlier screen that you were on.
A document entitled Risk Disclosure Statement opens. Close the document after reading.
Another document opens. This time it is the Omnibus Participating Trust Agreement.
Read and then close the document. You will finally come back to the Regular UITF Subscription screen.
You will be asked to enter the amount of UITF you wish to buy and then select the CA/SA (current account/savings account) number from which your payment will be deducted.
Congratulations! You now have your first UITF purchased at the safety of your home or office.
For the performance of select UITFs, please refer to UITF Rates.