Introduction to Investing in Philippine Unit Investment Trust Funds

I've been researching investing for a few months now. I had just passed the board exam and was eager to begin saving for my future. I had no savings when I started researching. All I had was the desire to amass wealth as soon as possible. What began as research on time deposits broadened my horizons to better ways of investing. I was looking for ways to start saving and investing.

Stock Investing

I looked up articles about trust funds on the internet. After reading these articles, I realized that trust funds were ideal investment vehicles for me. I sought advice from my relatives about trust funds, but none of them were familiar with them. After receiving no advice from my relatives. I decided to broaden my knowledge by researching trust funds.

There are various types of trust funds available in the Philippines, each catering to different investment preferences and goals. These include equity, balanced, bond, and money market funds denominated in either the Philippine Peso or the US Dollar.

Equity trust funds invest primarily in stocks and have the potential for the highest returns on investment. However, equity funds are the most volatile and carry the highest level of risk when compared to other fund types. As an investor, you must be prepared for the fluctuations and uncertainties that come with stock market investing.

Bond funds, on the other hand, primarily invest in government bonds and Treasury notes. These funds place a premium on security, offering investors a relatively stable investment option. This increased security, however, comes at the expense of lower potential returns when compared to equity funds.

Money market funds are an excellent choice for those looking for a conservative approach. They are regarded as the safest of the four fund types, but this safety comes at the expense of lower returns. Money market funds invest in low-risk, short-term assets such as Treasury bills and bank deposits.

Balanced funds, which combine elements of equity, bond, and money market funds, provide a diversified approach. These funds seek to strike a balance between risk and return, appealing to investors seeking a more conservative investment strategy.

My foray into the world of investing has opened my eyes to the plethora of options available to people looking to save and grow their wealth. Trust funds, in their various forms and denominations, present appealing opportunities for Filipino investors. There is a suitable trust fund waiting to be explored, whether one seeks the potential for high returns through equity funds, prioritizes security with bond funds, prefers stability through money market funds, or desires a balanced approach. Armed with this knowledge, I am eager to begin making prudent investment decisions to secure my financial future.