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).
My name is Fitz Villafuerte and I own this website. I’m a Filipino entrepreneur, author, corporate trainer, and a Registered Financial Planner.
In here, I curate various questions on business, investments, and personal finance. But there are also questions about wealth, success, and life in general.
You can visit and read my blog here; and if you want to send in questions that you want me to answer, then just email me here. Thanks!
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?