A portion of my emergency fund placement is in BPI UITF Premium Bond Fund. An unexpected expense came my way last week (and it's really under "emergency") so I decided to redeem some funds in my BPI UITF account. In other banks, you need to personally go to the branch, submit your certificate, and sign some documents. But with BPI, all it takes are just few clicks. First of all, you need to have an online account (of course) and you also have to add your investment account online (it should appear in your portfolio). After that, you're good to go.
1. Under Investments, choose Unit Investment Transfer Funds > Redeem
2. The next page will show you your available funds. And here's the cool part. You can choose whether you want a full or partial redemption (I chose "partial" since I really don't need to withdraw everything)
You need to maintain a minimum balance of Php 10,000 if you choose partial redemption.
3. I also like how you get to choose if you want to redeem in units or in amount.
4. After that, you're done! You just need to agree to the terms and conditions below and enter your password.
An important note though. For premium bond and money market, your fund will be credited a day after your settlement - given that you book it before 12 noon.
I'll blog about online subscription on my next post. :)
Hi, does it go straight in your online account after redeeming?
ReplyDeleteHi, yes, it will be credited to your account one day after your settlement date (for Premium bond and money market fund)
DeleteI didn't know how to redeem, your post was very helpful, thanks a lot :)
DeleteThanks, do you know any other banks or mf companies with this service? We should consider accessibility when choosing where to invest.
ReplyDeleteNot sure if there are other banks/MF companies with the same features. BDO has an Easy Investment Plan, but you still need to go to the bank to enroll.
DeleteYes indeed BPI makes it easy to invest in UITF funds...... you only need one visit to open the account, the rest is all online. I had been trying to research which banks offer this kind of facility, but I haven't found one. In some cases, one cannot even access (view, I mean) one's UITF investments online, that is why BPI is such a conevenience, nothing can beat it. If anyone knows of other banks that has this, please let us know.... as I also need to diversify .
ReplyDeleteI heard that PNB is now opening an internet banking facility. It is much easier now for other UITF investors out there to invest and manage there investments.
ReplyDeletehi, if I withdraw before 12nn, the rate per unit is based on what it posted on their site that day or the rate next day? I withdraw some units in my bpi uitf and while redeeming it, the rate was 140.30 with approved status, then the next day, the rate has become 138.80 with allocated status. How will I know which is the rate of my redeemed units?
ReplyDeleteHi. If before 12nn, the rate you will get is the rate on that day.
DeleteSis, I've commented on the other post about redemption and here it is. ANyway, may q's ako about the redemption. Were there any fees subtracted to you when you redeemed? TIA!
ReplyDeleteHi! There were no charges. :)
Deletewas there charges? or did you receive the same amount as the rate on the day?
ReplyDeleteHi! There were no charges.
DeleteHi. I just want to know if I can add funds to the existing principal or will it be through another separate subscription worth a minimum of P10,000?
ReplyDeleteAlso, will it be wise to redeem immediately once I gained P1,000 and above?
hello. it's another subscription, minimum additional fund is 1K.
ReplyDeleteon your second question, i think it really depends on your goal and risk appetite. I don't redeem any gains until the need arises, but that's me. My mom, on the other hand, would like to redeem once gain reaches 5K.
Just to clarify my answer above, you can add, but you need to subscribe (min of P1K) and of course, it will be for a different NAVPU.
DeleteThank you for your reply. Oh i see.
ReplyDeleteWhat I'm thinking kasi is if the NAVPU drops a day after I have gained P1,000 then I won't be able to redeem it and have to wait until it rises again. Is this advisable? Will redeeming affect my future gains? Is it cumulative or dependent only on the principal subscription?
Hi again. Personally, I don't advise that because if you're a long term investor, daily fluctuations should not affect you that much (or at all). But if you're investing for the short term, I would suggest investing in short term funds or fixed income fund, as the fluctuation is not as much as investing in equities. Also, historically, the trend for these short term fund is up (of course there are dips, but goes up eventually) In UITF, the basis is the number of units. Redeeming will affect your future gains since the when you redeem, the number of outstanding units will go down.
DeleteHi! Yeah you have a point there. I kinda lost track of what my investment was for.
DeleteI don't know if it was a good decision that I invested in equities immediately because I was enticed by the gains computed by the returns calculator as compared to short tern funds.
So it means that once the principal earns, the gain will be added on top of the principal therefore increasing the outstanding units? Or is it the principal that will be the only one earning for the entire life of the fund irregardless of how much the fund has earned? Ang gulo ba? Hahahaha!
Regarding redemption, if I redeem without moving my principal, will the outstanding units still go down?
Hello. Your outstanding units will only move if you made additional placement or if you redeem. Doing nothing will not increase/decrease the number of units, the change is only due to the movements in NAVPU. :)
DeleteTo give you an example: If you place P10K in UITF and NAVPU at the time of placement is 125. You will have 80 outstanding units (10K / 125). If NAVPU goes up to 150, your outstanding units will still be 80, but the peso value of your investment will now be P12K (80 units * 150), giving you unrealized gain of P2K.
Going further to the example, you decided to redeem your P2K gain. Since UITF is based on the number of units, you can only redeem around 13 units (13 * 150 NAVPU = P1,950). So the peso value of your investment will now be P10,050 (12K - 1950), your outstanding units will be 67 only.
If the NAVPU increases again (say, 200), the peso value of your investment will now be based on 67 units (67 x 200 = P13,400). :)
I invest in equities for my long-term goals, and so far I am happy with my decision. Of course, there were dips, but like I said, if I don't really need it now, why should I worry for the loss today. In fact, I take this as an opportunity to add more to my portfolio, it's like I'm buying on a bargain! :)
I see so once I make a redemption from the earnings of the principal e.g. 10K, the units are affected pala? I thought they weren't. I thought the peso value is the only one affected. Okay so I won't redeem unless needed. The best thing to do is to add to my portfolio as well.
DeleteWow thank you so much for taking the time and effort to answer my questions. Really appreciate it.
I'm thinking of what fund to invest in next eh. ALFM or Odyssey? Definitely I have invest in a short term fund.
I'm glad I could help. It just surprises me that someone is still reading my blog though I haven't updated this in months! :)
DeleteI'm don't have any placement with ALFM so I don't know if it's ok, I have placed my mutual funds with First Metro Save and Learn Equity Fund. You may want to check this site for the performance, though this is only up to August 2014: http://mutualfundphilippines.com/2014/09/fund-performance/top-mutual-funds-philippines-august-31-2014/
I also don't have any funds with Odyssey, though you might want to consider the trust/management fee compared to its counterpart in the BPI Investment Fund (or any other fund aside from BPI)
https://www.bpiassetmanagement.com/pages/odyssey-funds/
https://www.bpiassetmanagement.com/pages/bpi-investment-funds/
If you can see, trust/mgt fee for Odyssey equity fund (2%-2.5%) is a bit higher than BPI Investment Fund (1.5%). Minimum transaction fund is also different. Only P1K for the investment fund and P5K for Odyssey. Personally, this is what I like with BPI Investment Fund, the min transaction amount is very low, I can afford to add every month. I haven't checked the performance of the two though, but I would suggest you compare and analyze before you invest. :)
I'm also thankful for your advice and sharing your tips here.
DeleteI honestly don't know anything about investments. I just learned more about it after talking to a manager at PNB and he explained it to me but I chose to open an investment account with BPI because I already have an existing account there.
Yeah I agree with you that the minimum investment and transaction is more accessible with BPI. Other banks require you to invest at least 25K so I just went with BPI.
Oh the Odyssey fund is quite pricey. Hahahaha! It just sounds nice though. Hahahahaha! I'll go with BPI-IFs na lang.
By the way, how do I invest in the funds shown in the mutualfundphilippines website? Is that bank-based?
I wish I knew all of this when I was still in undergrad. I might have had a sizeable investment by now. Oh well.
Your help is truly appreciated for someone still exploring investing.
DeleteOh yeah the rates are higher for Odyssey vs BPI-IFs. Didn’t notice that. It just sounds so nice kasi. Hahahaha!
By the way, for example, I already earned 5K, how can I withdraw the principal along with the gain so that I can place it in another fund? Kumbaga paiikutin ko.
Hi! Is your question for your BPI UITF investment? If you'll redeem 100%, just choose full redemption.
DeleteBy the way, how do I invest in the funds shown in the mutualfundphilippines website? Is that bank-based?
ReplyDeleteJust to differentiate UITF and mutual funds, UITF is handled by banks (BPI, BDO, Metrobank), and mutual funds are being handled by well, mutual fund agencies (like the companies listed in the mutual fund philippines website). You can read more of their differences here: http://fitzvillafuerte.com/mutual-funds-and-unit-investment-trust-funds-whats-the-difference.html
DeleteI only have First Metro as my mutual fund, the investment process is so easy, you can do it by yourself, please check it out here: http://fami.com.ph/investment-procedure/initial-investment/
You can check out other MF companies for your analysis, I bet the investment process is easy as well.
Sorry for the duplicate post. I thought my first post didn't go through because I accidentally clicked sign out that's why the content of the 2nd is almost similar to the 1st one.
ReplyDeleteI see so full redemption then can I make another placement with the amount I just redeemed?
Oh I also didn't know about that distinction. I think for the meantime I'd go with UITFs muna because it's more convenient with BPI and banks in general. The article was very informative so I saved it.
In your experience, are the gains better with MFs?
yes, you can make another placement, though it will not make sense if you put it on the same fund (e.g., redeeming your short term fund, then place it on the same short term fund)
DeleteI agree, convenience is really a big plus with BPI, no doubt about that. It's not the same though with other banks. I have UITF with other bank where I need to go there personally to redeem/subscribe and I have to be there before cut-off (12noon) so that they will place my investment on the same day. What makes me invest in this bank in the first place? It performed better (but please note that I based it on the past performance, it doesn't really guarantee their future)
regarding gains of MF vs UITF, i can't say exactly. what i like about my MF is that I receive a quarterly report from First Metro regarding the state of my investment, and I can also call them and request for the report any time. However, the management fee is high, compared to UITF, but at least customer service is really good (but I'm only speaking for my experience from First Metro, and not for the whole MF agencies in general). so for me, it's better to compare performance rather than discuss which one is really better.
sorry for this late reply.
ReplyDeleteoh i see. yeah it makes sense since it will be the same no. of units if i place it in the same fund. the next logical step is to place it into a different fund.
i might focus on UITFs muna since it's a little hassle to invest in MFs.
hi admin! i just placed my first manual subscription but i'm confused with the terms. i placed the subscription before 2:30 but until now it's just "approved". when will it become allocated?
ReplyDeletehello! cut-off is 12 noon. Since you placed beyond the cut-off date, your navpu will be the next day's rate, you will know the rate a day after the placement.
Deleteoh i see. i checked the cut off time for equity value fund and it's 2:30 daw so counted siya as same day? i will regularly subscribe para mabilis lumaki.
Deletei read an article in bbc that the economy will slow down daw next year. wah