What’s the difference between a mutual fund and a UITF?

October 16, 2011 | By Fitz | Filed in: Investing.

I always here about these two types of investments, but what’s their difference?




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One Response to “What’s the difference between a mutual fund and a UITF?”

  1. Fitz says:
    October 16, 2011 at 5:40 am

    Both mutual funds and UITFs are pooled investments. This means that the money in them came from thousands of people.

    This money, which is collected under a company or institution, is then invested in diversified financial instruments such as stocks, bonds, money market and many others.

    Basically, you invest in a mutual fund from a mutual fund company while you invest in a UITF from a commercial bank.

    Also, MF’s are regulated by the Securities and Exchange Commission (SEC) while UITF’s are regulated by the Bangko Sentral ng Pilipinas (BSP).

    Investing in a MF or a UITF has many advantages or disadvantages. To learn more, you can read this article: Mutual Funds and Unit Investment Trust Funds: What’s the Difference?